Currently, cross-border e-commerce is enjoying the dividends of the market and policies, and various players are accelerating their layout process. In the specific operation mode, in addition to the shopping guide type, platform type and self-operated model, what new gameplay will appear? Which model will become the mainstream in the future? This requires in-depth thinking by relevant practitioners.
my country’s cross-border e-commerce industry is still an emerging market, and the market structure has not yet been formed. Entrepreneurs, corporate giants, investment and financing institutions and other players have great development opportunities. At this stage, market participants who have deployed cross-border e-commerce mainly include domestic e-commerce giants such as Alibaba, JD.com, and Amazon, listed companies such as Global Easy Shopping, and startups such as NetEase Kaola and Mi Ya Baby.
In terms of platform operation mode, it mainly includes platform type and self-operated type. The former requires the introduction of a large number of merchants, mainly including B2B and C2C. Among them, the B2C type represented by Tmall International is the mainstream model, and the C2C model platforms mainly include Yangmatou and Taobao Global Shopping. At the same time, two self-operated cross-border e-commerce platforms have emerged in the domestic market: one is represented by Mi Ya Baby, which takes the vertical category route and cultivates the niche market; the other is represented by Vipshop Overseas Selection, which relies on the original platform with strong influence to create derivative brands.
1. Cheap price
In traditional cross-border trade, products need to go through multiple links such as sellers, channel merchants, distributors and retailers before they can finally reach the hands of buyers. The participation of too many third-party merchants has caused product prices to rise sharply, even up to 2~3 times the ex-factory price. Take the 2010 rosé wine Super Musica as an example. Its retail price in France, where it originated, is about 80 yuan, but its retail price in China is as high as 300 yuan. After deducting the tax cost of more than 40 yuan and the logistics cost of more than 20 yuan, there is still a profit of nearly 200% in the middle.
Cross-border e-commerce directly purchases goods from overseas brands or channel merchants and directly connects with consumers, eliminating a large number of intermediate links, thereby giving merchants greater profit space and allowing consumers to spend less cost. By comparison, we can find that a large number of intermediate links in traditional cross-border trade are the main factors causing the substantial increase in product prices.
2. Rich variety
Compared with traditional trade, cross-border e-commerce can provide consumers with a significantly increased variety of products, which can fully meet the personalized needs of consumers. Especially in recent years, my country’s product quality and food safety issues have become increasingly serious. Some consumers with strong purchasing power will be more inclined to buy products from overseas markets such as the United States, Japan, and Australia, where the product quality supervision system is more complete.
At present, the products purchased by domestic overseas shopping users are mainly maternal and child products, electronic products, health products, cosmetics, handicrafts, etc. With the rapid rise of mobile Internet, people’s awareness of foreign products has increased significantly, which has further increased people’s desire to shop overseas.