Detailed explanation of cross-border e-commerce models and their subdivision types

Cross-Border E-Commerce, as a new form of trade in the context of globalization, can be subdivided into multiple modes according to different classification standards. This article aims to integrate relevant information and provide a detailed analysis of the different types of cross-border e-commerce from the aspects of the number of participants, transaction entities, technical implementation perspectives, and specific operating models.

1. Divide according to the number and form of participants

Cross-border e-commerce is mainly divided into the following four types based on the number and form of participants:

• Exporter-led type: That is, a “one-to-many” model in which one export seller serves multiple import buyers. Under this model, exporters need to establish and maintain their own official website for potential importers to query product information and make transaction decisions.

• Importer-led type: Refers to the “many-to-one” model in which one import buyer connects with multiple export sellers. The importer sets up an online procurement platform to publish demand information, and suppliers from all over the world bid for supplies.

• Cross-border multi-party transaction type: Also known as the “many-to-many” model, it involves transactions between buyers and sellers in multiple countries/regions. This type of platform is usually operated by an independent third party and provides services such as information matching and customer authentication. Alibaba is a representative of this type of platform.

• Cross-border collaborative business and supply chain optimization: Involves cross-border inter-enterprise communication and collaboration and supply chain management optimization activities.

2. Classification by transaction entities

According to different transaction entities, cross-border e-commerce can be further divided into:

• B2B model: E-commerce transactions between enterprises, with large transaction volume but low frequency, suitable for the purchase and sale of bulk goods. Occupying a dominant position in China’s cross-border e-commerce business.

• B2C model: A business-to-consumer retail model that sells goods directly to foreign consumers through international e-commerce platforms, such as selling products through AliExpress, Amazon and other platforms.

• C2C model: Person-to-person transactions, although the threshold is low, the market share is relatively small due to complex management.

• M2C/F2C model: Manufacturers sell directly to consumers. In recent years, it has become increasingly common as manufacturers directly participate in e-commerce.

• B2B2C model: It combines the advantages of B2B and B2C, provides a contact platform between exporters and importers, and provides additional service support.

3. Division based on technology implementation perspective

• Private network application model: An early form of paperless trade, relying on closed EDI technology for data transmission, which is highly secure but expensive.

• Open Internet application model: Breaking through the limitations of private networks, using public networks to reduce costs and improve information exchange efficiency.

• Mobile commerce model: Based on the open Internet, it develops towards a more convenient mobile terminal, making it easier to handle trade affairs anytime and anywhere.

4. The subjects and processes of cross-border e-commerce

The main participants of cross-border e-commerce include platform-based, self-operated and hybrid enterprises. Its core process involves multiple links such as product display, order processing, payment confirmation, logistics distribution and customs clearance.

5. Segmentation types in B2C mode

• Bonded import + overseas direct mail model: Representative platforms such as Amazon, Tmall International, etc. shorten the delivery cycle by setting up cross-border logistics warehouses.

• Self-operated + investment model: For example, Suning.com uses its own resource advantages to attract international brands to settle in.

• Direct operation model: The representative company is Jumei Youpin, which directly controls the entire process from procurement to sales.

Through the above classification, we can clearly see that there are diversified development paths and practice models in the field of cross-border e-commerce. The emergence of these different types not only reflects changes in market demand, but also provides more possibilities for the innovative development of the cross-border e-commerce industry in the future.