Credit risk analysis of cross-border e-commerce transactions: dual challenges for sellers and buyers

Credit risk faced by the seller

1. Fake websites and fake product information

The Internet is filled with a large number of false and fraudulent websites. Cross-border e-commerce mainly includes two forms: one is phishing websites, where criminals use various means to counterfeit the URL address and page content of the real website. This is used to defraud users’ bank or credit card account numbers, passwords and other private information. It is usually spread via email, which contains a disguised link that leads the recipient to a phishing website. The other is for criminals to set up a fake online shopping and online payment website, gain users’ trust through fake products and advertising, and deceive users into directly transferring money into hacker accounts.

2. Counterfeit and shoddy goods

In cross-border e-commerce transactions, counterfeit and shoddy goods have always been a headache for consumers in various countries. For example, among imported cross-border goods, there are three phenomena in the problem of fake goods: First, fake logistics sell fake goods, that is, some goods are not produced through formal channels and are sold through some black factories and small businesses without authorization from the brand owner. They are produced in workshops and then affixed with counterfeit trademarks and advertised as authentic for sale online; the second is that genuine logistics sells fake goods. This phenomenon is divided into two situations, that is, foreign fake goods flow into the country, or domestic fake goods are shipped to After going abroad, it flows into the country; third, fake logistics sells genuine goods, which is often called smuggling.

3. Credit issues of false advertising

Buyers and sellers in B2C e-commerce trade will choose the products they want to buy based on the pictures, text, advertising words, etc. on the platform. If the text is exaggerated and untrue, and the pictures are overly beautified and not taken in kind, it will Directly affects the buyer’s purchase, thus causing a credit crisis.

Buyer’s transaction credit issues

1. Malicious disputes

In cross-border e-commerce, malicious disputes initiated by buyers often occur, with the main purpose of refunds and misappropriation of goods. Common malicious disputes include buyers procrastinating, deliberately failing to confirm receipt, and embellishing the product to demand a refund.

2. Malicious extortion

Some malicious buyers make full use of the platform to give rules or legal loopholes such as “bad reviews”, complaints about fake goods, complaints about safety, complaints about intellectual property rights, etc., to carry out extortion. If sellers do not pay the relevant fees, they will file a complaint with the cross-border e-commerce platform, which may result in the seller being warned by the platform, having traffic removed from the shelves, or removing the product from the shelves, or in serious cases, funds may be frozen or the store may be closed.

To sum up, both sellers and buyers face varying degrees of credit risks in cross-border e-commerce transactions. These problems not only harm the interests of both parties, but also seriously threaten the healthy development of the entire industry.