The development history of cross-border e-commerce: evolution from 1.0 to 3.0 stages

Cross-border e-commerce has experienced significant evolution and is mainly divided into three stages: 1.0, 2.0 and 3.0, each stage has its own unique characteristics and business models.

Cross-border e-commerce 1.0 stage

The 1.0 stage of cross-border e-commerce is mainly a foreign trade information service model of online display and offline transactions. During this period, the core function of third-party platforms was to provide information display for enterprises, and the transaction link was not implemented on the Internet. Therefore, its profit model mainly relies on collecting membership fees (such as annual service fees) from companies that display information. Although the Internet has helped solve the problem of connecting China’s trade information to world buyers at this stage, it is still insufficient in terms of the realization of online transactions and the integration of the foreign trade e-commerce industry chain. Typical representatives include platforms such as Alibaba International Station and Global Sources.

Cross-border e-commerce 2.0 stage

In 2004, the launch of Dunhuang Net marked the arrival of the cross-border e-commerce 2.0 stage. At this stage, e-commerce platforms began to expand into areas such as electronic transactions, payment and logistics, thus gradually realizing online cross-border transactions. The B2B platform model at this stage has become the mainstream of cross-border e-commerce. By directly connecting small and medium-sized enterprise merchants, it further shortens the industrial chain and increases the profit margin of product sales.

In addition, with the diversified development of third-party platform revenue, its profit model has shifted from traditional “membership fees” to “transaction commissions”, and value-added income has been achieved through marketing promotion, payment services and logistics services.

Cross-border e-commerce 3.0 stage

In 2013, the arrival of the cross-border e-commerce 3.0 stage marked the transformation of the entire e-commerce ecosystem. At this time, the participants are not limited to small and micro enterprises, but mainstream factories, foreign trade companies and brand merchants are also gradually joining. The products sold on the platform have shifted from second-hand goods to first-hand goods and innovative products, and companies have begun to pursue scale, branding and localized operating models.

New Foreign Trade (also known as Foreign Trade 3.0) has achieved the effective integration of online and offline, digital economy and real economy, further improving the efficiency of foreign trade business. New foreign trade not only covers traditional foreign trade processes such as trade, logistics, customs clearance and inspection, currency payment, financial loans and credit insurance, but also provides a positive impetus to the integration of traditional and digital trade models.

Summary and Outlook

The development history of cross-border e-commerce shows the transformation from information flow integration to comprehensive transactions. As technology and participants continue to change, cross-border e-commerce will continue to develop in a more efficient and diversified direction in the future, and incorporate more elements of traditional trade.