Challenges and policies facing the development of cross-border e-commerce

With the accelerated networking and digitalization of the global economy, cross-border e-commerce has become an important force in promoting the development of the national economy. However, industry development has also encountered many bottlenecks and challenges, which are specifically reflected in the following aspects:

1. Product homogeneity is serious and competition is intensifying

At present, my country’s cross-border import e-commerce market structure is relatively concentrated, with most platforms focusing on categories such as clothing, electronics, maternal and infant, and outdoor sports. Due to similar products, various platforms have used price wars to reduce profits and try to attract consumers, such as launching free shipping and holiday discounts and other promotional measures, resulting in continuous compression of profit margins.

2. Difficulties in controlling foreign supply chains

Most domestic cross-border e-commerce companies rely on individuals or professional teams to purchase overseas goods, and have not achieved direct cooperation with major brands and overseas suppliers. This has led to a decrease in the stability of the supply chain and an increase in product costs, further causing problems of genuine and fake products and unstable quality.

3. Unclear regulatory policies lead to increased risks

Although relevant policies have been frequently introduced in recent years, they are often suspended or extended. The uncertainty of such policies has increased the risks faced by enterprises in their operations. For example, the short-term adjustment of the cross-border e-commerce retail import tax policy issued by the government in 2016 has posed an obstacle to enterprise operations. In addition, complex tax procedures also increase sellers’ operating costs, causing some small sellers to withdraw from the market.

4. Logistics problems are serious

The logistics efficiency of cross-border e-commerce is low, and the reliance on air transportation keeps logistics costs high. Packages are damaged or lost frequently during transportation, which seriously affects consumers’ shopping experience and also brings economic losses to enterprises.

5. Tax policy challenges in developing countries

Although taxation is a necessary means levied by governments to ensure fair competition, complex taxation policies have placed a heavy burden on the cross-border e-commerce industry. In most developing countries, e-commerce tax policies are not yet complete and face huge challenges. However, countries such as India and Singapore have begun to implement e-commerce tax policies, which has promoted the development of the e-commerce industry.

6. Policy support and industry trends

In order to accelerate the development of cross-border e-commerce, various policies such as the “Opinions on Policies for Promoting Cross-border E-commerce Retail Exports” have been continuously introduced, aiming to maintain market order and promote industry standardization. With the help of policies, The development of the industry will continue to be in a dividend period, providing more market opportunities.

At the same time, in the new environment, the market demand for cross-border e-commerce is increasingly huge. Industry standardization, omni-channel layout, supply chain integration and emphasis on product quality have become key elements for future development. With the application of artificial intelligence and big data, enterprises will also become more competitive in reducing service costs and improving user experience.

Conclusion

To sum up, although China’s cross-border e-commerce industry faces multiple challenges such as homogeneous competition, unstable supply chains, unclear policies, and logistics, its future development will be driven by policy support and market demand. The potential is still worth looking forward to.