Full analysis of types of cross-border e-commerce payment institutions and import e-commerce platforms
With the development of Internet technology and globalization, cross-border e-commerce business has developed rapidly around the world. In China, cross-border e-commerce business has also shown a rapid growth trend. In particular, cross-border import e-commerce business is growing due to policy promotion and market demand. This article will explore the types of cross-border micro-commerce payment institutions and the main classifications of cross-border import e-commerce platforms.
Cross-border micro-commerce payment institution types
Payment institutions that occupy the core link in the cross-border micro-commerce payment industry chain are mainly divided into two types: commercial banks and third-party payment platforms.
Commercial Bank
Whether domestic or overseas, many commercial banks participate in the cross-border micro-commerce payment industry chain, such as Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Postal Savings Bank of China, etc. Almost all large cross-border e-commerce websites support bank cards such as UnionPay, MasterCard, JCB, VISA, and American Express. As card issuers, commercial banks play a vital role in cross-border payments. When a consumer uses a bank’s credit card to pay, that bank is the card issuer.
However, in the cross-border payment process, domestic merchants cannot directly cooperate with overseas acquiring banks, so third-party payment institutions have emerged. The relationship between commercial banks and third-party payment platforms is not competition but complementary cooperation.
Third-party payment platform
Consumers only need to register an account on a third-party payment platform to complete cross-border transactions. The reason why third-party payment platforms can play an important role in the cross-border micro-commerce payment industry chain is that they have mature online payment technology and a deep understanding of the e-commerce industry. Although third-party payment platforms are not financial institutions and are not qualified to issue cards, their role in the payment process is indispensable.
Types of cross-border import e-commerce platforms
Self-operated direct procurement type
This type of platform directly connects with high-quality brands or suppliers to ensure product quality. Representative companies include NetEase Kaola Overseas Shopping and Amazon Overseas Shopping.
Businessmen settled in
E-commerce platforms introduce brand merchants and help them regulate third-party sellers, such as prohibiting retailers from selling certain branded goods or setting minimum selling prices. The platform will also provide preferential measures to brand owners.
Buying handmade products
Individual or corporate buyers must submit relevant supporting documents and pass the review before they can become buyers. Such platforms include HaiPaike and MiYaBaby.
Integrated e-commerce platform
This type of platform cooperates with foreign suppliers to introduce various products and provide online sales and logistics distribution services. Tmall Global and JD Global Shopping are the leaders among them.
Social e-commerce platform
Based on social networking and combined with e-commerce functions, it is suitable for low-cost and efficient promotion by individual small-scale sellers. Pinduoduo overseas shopping and Xiaohongshu are typical examples.
Group buying e-commerce platform
Using a group buying model, suitable for price-sensitive sellers. Jumei Youpin Overseas Purchasing and Mogujie Overseas Purchasing have outstanding performance in this field.
In short, China’s cross-border import e-commerce business is characterized by diversification and segmentation. Sellers should choose appropriate platforms for business expansion based on their own circumstances. At the same time, in the face of challenges and risks, it is crucial to formulate effective business strategies.