Risk avoidance and payment security strategies in cross-border e-commerce
In the field of cross-border e-commerce, both small and beautiful start-ups or large enterprises need to face various risks, including payment risks, copyright risks, trademark infringement risks, etc. This article aims to explore how to avoid these risks and propose effective solutions.
The survival and development of small but beautiful enterprises
For small but beautiful companies, the main problem they face is the squeeze from large and powerful companies. These large companies usually have more resources and can easily attract talent, acquire resources, and crush them on price. Therefore, small but beautiful enterprises must constantly seek innovation and development and avoid being satisfied with the status quo. It is recommended that enterprises improve their competitiveness by optimizing their talent structure, expanding product lines, and establishing brands. At the same time, during the expansion process, we must avoid blind expansion to avoid getting into trouble.
Risk analysis of cross-border payment methods
Remittance risk
The possible risks brought by the remittance method mainly include the long time of occupying funds and the risk of possible loss of funds. Under the prepayment method, the importer bears greater risks; while under the cash on delivery or credit accounting method, the exporter bears the risk. In addition, when using draft remittance, if the credit of the issuer is not good, the exporter may lose both money and goods; when using wire transfer or letter transfer, the remitter may cancel the remittance.
Collection risk
Although the collection method relatively reduces the risk of the exporter, it still needs to rely on the credit of the importer. If the importer has poor credit, it may result in a refusal of payment or a request for a discount. In addition, collections may also be affected by factors such as laws, regulations and social unrest.
Letter of Credit Risk
Although it helps to avoid risks when using letters of credit for settlement, there are also many problems. For example, document discrepancies may lead to refusal of payment, and the processing procedures are complex and time-consuming.
Risk management and preventive measures
Establish a risk management and control system
Enterprises should build a risk management system through five major modules: account security, transaction security, seller security, information security, and system security to prevent account theft and information leakage, thereby reducing the risk of transaction fraud.
Perform relevant responsibilities
Payment institutions should strictly review the authenticity of transaction information and the identities of both parties, retain relevant information for future reference, and provide timely warnings for abnormal transactions. In addition, relevant national departments should also strengthen the supervision of payment institutions and promote the establishment of a cross-border trade information sharing platform.
Prevention and response to trademark and copyright risks
Enterprises need to enhance their awareness of copyright protection, register copyright in a timely manner, and establish a copyright management system. For trademarks, in addition to registering trademarks in the main field, you should also consider the fields that may be involved in the future and protect similar categories. In addition, establishing a trademark monitoring system can help promptly detect and respond to infringements.
Conclusion
The healthy development of cross-border e-commerce is inseparable from effective risk management. Whether it is payment risk, copyright risk or trademark infringement risk, companies should take corresponding measures to prevent it. By establishing a complete risk control system, fulfilling relevant responsibilities, and strengthening intellectual property protection, cross-border e-commerce companies can better cope with various challenges and achieve sustainable development.