Cross-border e-commerce direct shipping model: achieving seamless connection with customer needs

The direct delivery platform model is also called the “Dropshipping model”. E-commerce platforms that adopt this operating model convey consumer demand information to manufacturers or wholesale operators, who are then responsible for delivering the corresponding goods to in the hands of consumers.

How the straight hair mode works

The direct delivery platform implements a B2C model, which to some extent can be regarded as a third-party B2C model. The portion of the product sales price higher than the wholesale price is obtained by the platform. In terms of cross-border supply of products, this model has been deeply expanded and has broad room for development.

Advantages and Disadvantages

Advantages

• With in-depth expansion in cross-border supply of products, this field has broad room for development.
• The platform has established stable cooperative relationships with overseas suppliers to ensure product supply.
• Ensure the transportation of products by independently establishing and operating a cross-border logistics system or joining forces with third-party international logistics companies in overseas countries.

Insufficient

• In the early stages of development, there were fewer merchants settling in and there was a lack of sufficient user base.
• The capital consumption in the exploration phase is relatively large.
• There is a problem of some domestic companies pretending to be overseas brands and entering the platform through improper means.

Typical representative

Tmall International

Today, Tmall International has developed markets around the world, and in the long-term development process, it has formed good interactive relationships with official institutions in many countries, such as France, Italy, and Australia. Official departments in these countries encourage local companies to cooperate with the Tmall International platform so that the platform has more suppliers. In addition, in 2014, Alibaba reached a deal with Singapore Post for US$249 million, buying more than 10% of its equity, providing guarantee for the platform’s logistics.

At the same time, Alibaba is actively joining forces with national logistics companies. So far, Brazil Post, China Post and Australia Post have all established good interactive relationships with Alibaba. Today, Tmall International e-commerce platform has signed contracts with a number of e-commerce pilot cities. In future development, it may adopt more bonded import models.

Yang Pier

Yang Terminal, established in 2009, is one of the representatives adopting the direct shipping model. Statistics show that Yangquan achieved revenue of 200 million yuan in 2013. By 2015, thousands of overseas suppliers had reached cooperative relationships with Yangquan. In order to ensure the transportation of goods, the company has established international logistics transfer stations in many overseas regions. Not only that, it has also teamed up with international airlines to realize cross-border commodity transportation through air transport.

In addition, Yangmao has gradually expanded the scope of its overseas purchasing business to enrich its product categories and attract more consumers. Starting from the third quarter of 2014, the platform will no longer charge entry fees from participating merchants. The overseas shopping application “Sweeping Goods Tool” launched by Yangquan has further increased the number of users of the platform. The Yangmao platform also joined forces with Yihaodian in July 2014 to provide consumers with overseas direct mail group purchasing services, known as the “Global Group” project.

From a macro perspective, the direct shipping model is the basic operation mode of Yangquan. At the same time, the platform increases the number of users through overseas purchasing. After the relevant policies are liberalized, Yangquan will regard the bonded import model as one of its key strategies, and its business planning will be more reasonable.

Cross-border Pass

Cross-Border Express also adopts the direct platform model, which is invested, constructed and operated by Shanghai Oriental Payment Co., Ltd. in the Free Trade Zone. According to the cross-border plan, they will provide platform services for merchants in the Shanghai Free Trade Zone who adopt the bonded import model. Today, there are not many merchants on the platform, and the product types are also relatively small.

In addition, several cross-border e-commerce pilot cities have successively launched the operation of independent cross-border shopping platforms. Such platforms were born with policy support. At present, it is not possible to accurately predict the development trend of such platforms. .