Before the outbreak of cross-border B2C e-commerce, most cross-border trade was conducted in a multi-link chain model of B2B2C. A consumer product must go through multiple links such as buyers/import and export agents, wholesalers, and retailers before it can reach overseas consumers. The characteristics of this model are that the division of labor in the transaction process is constantly refined, and the scale of each transaction link is maximized to gain cost advantages. The disadvantages of this model are: the interaction and communication between consumers and product/service providers are blocked, and it is difficult for manufacturers to understand the changes in consumer demand in a timely manner; the service providers in each link of the transaction process are huge and form a monopoly, which puts the buyers and sellers who should be the protagonists of the transaction at an asymmetric disadvantage, and their bargaining power is compressed, making it difficult to obtain a reasonable distribution of benefits in the industrial chain.
In addition, in an era dominated by cross-border trade B2B2C, cross-border logistics, capital flow, and information flow are all carried out in a form that adapts to the B2B transaction model: cross-border logistics dominated by container transportation and charter air transport; cross-border payments carried out by payment modes between enterprises such as letters of credit and wire transfers; information flows completed through inter-enterprise data exchange platforms such as EDI (Electronic Data Interchange). Entering the era of cross-border B2C e-commerce, the original traditional trade structure will be broken, manufacturers will face end consumers directly, and the various intermediate links in the traditional model will no longer serve as intermediaries for buyers and sellers to reach transactions. The logistics, payment and other functions they undertake will be completed by platform-based service providers, and all intermediate links will be transparent, flat and efficient.
The transformation of cross-border consumption from the traditional chain model to the platform-based ecosystem model has a profound impact on all parties involved in the transaction.
(1) For sellers, the flattening of the transaction process breaks the traditional step-by-step process of product output-cross-border sales-cross-border production operations-global operations, and product/service providers face consumers directly. Cross-border collaboration based on digital platforms enables enterprises to promote products to the global market through virtual networks and virtual shelves on the platform, and directly establish efficient interactive communication with a large number of consumers around the world, so that they can perceive market demand, innovate products, and find sales opportunities, forming a more virtual and digital global network structure, making enterprises more flexible and agile, with low operating costs and more accurate decision-making.
At the same time, the digital transaction model of cross-border B2C e-commerce platforms reduces transaction costs, and the threshold for cross-border transaction participants is lowered, which promotes a more equal and inclusive globalization. In particular, small and medium-sized enterprises and suppliers from developing countries and regions can directly interact and trade with overseas consumers, making the beneficiaries of the globalization dividend more extensive. Manufacturers of long-tail unique products will gain a unique position in the market through the platform.
(2) From the perspective of buyers (consumers), the cross-border B2C e-commerce model brings significant consumer benefits. Including providing consumers with more abundant overseas products and services; more suppliers to choose from; greater room for personalization of products and services; the flat online transaction model will reduce the number of intermediate links, making the price of products and services lower; and shorter delivery time.
(3) The role of intermediary service providers has changed. Service providers in the traditional B2B2C cross-border transaction model, such as import and export agents and offline retailers, still have demand for the logistics, customs clearance and after-sales services they provide, but their role in the original chain model is no longer necessary. They need to reposition themselves in the new ecosystem. Although they have lost their monopoly under the original model, they will have the opportunity to create value and gain returns in a wider online space.
(4) The cross-border BC e-commerce ecosystem will give rise to new business models and market participants. For example, marketing services that were previously completed offline will be transferred online; digital transaction models will generate new value-added service opportunities including management and analysis of massive data, information security and consumer privacy protection; a large influx of small and medium-sized enterprise sellers will bring about demands for outsourcing and consulting training.