For traditional foreign trade enterprises, the original business model faces many problems, such as insufficient market orders, low-end value chain, poor information between buyers and sellers, long order completion cycle, high communication costs between the two parties, etc. These problems restrict the growth of enterprises. Cross-border e-commerce can help enterprises solve these problems to a certain extent.
Cross-border e-commerce not only has the advantages of compressing intermediate links, reshaping trade methods, increasing corporate profits, preventing corporate overcapacity, and providing assistance for corporate development, but also can help Chinese companies improve their international competitiveness, build international brands, and enhance international discourse power. Specifically, cross-border e-commerce has the following important significance.
1. Reshape trade methods and increase corporate profits
Cross-border e-commerce is a subversion of traditional large-scale trade and retail models. It will break the monopoly of exporters, importers, wholesalers, distributors and even retailers under the traditional foreign trade model, making the supply chain of export trade flatter. This can effectively reduce the intermediate links of international trade and the corresponding commodity circulation costs, realize the shortest path from factory shipment to consumer receipt, and increase corporate profits.
2. Help SMEs to participate in global trade
Cross-border e-commerce has lowered the threshold for SMEs to enter the international market, which is of great help to the growth of SMEs, especially those focusing on “small and beautiful”. Cross-border e-commerce allows SMEs to compete with large enterprises with the help of cross-border e-commerce platforms, and sell products to overseas customers in the form of online retail or small wholesale.
Therefore, for SMEs, export cross-border e-commerce is a trend and opportunity that cannot be missed under the “Internet +” trend. It’s just that the “Internet +” here is not a simple addition, nor a blind addition, but a reconstruction of the entire industry. For the deep digging of the entire industry, it is necessary to have good products to achieve beautiful results.
3. Maintain performance growth and promote foreign trade transformation
Cross-border e-commerce can enable traditional enterprises to establish close ties with end consumers, keep information flowing, effectively promote the transformation and upgrading of traditional enterprises, and move towards independent research and development, independent design, independent sales, and independent brand creation while keeping abreast of market trends and dynamics, increase product added value, enhance product competitiveness, and thus achieve sustainable development of enterprises.
In addition, merchants must realize that in cross-border e-commerce, “electricity” is only a channel, and “commerce” is the core. Only by keeping a good grasp of the “pulse” of overseas markets, finding the core pain points of target customer groups, and developing targeted products can the transformation be successful.
4. Change the trade pattern and achieve leapfrog development
Cross-border e-commerce may allow China to give birth to a number of international brands recognized by the world, achieve leapfrog development of my country’s foreign trade, change the inherent pattern of international trade, and allow Chinese companies to have more voice and pricing power in the international market, thereby leading international trade and leading foreign cooperation.