With the continuous development of the global economy, the cross-border e-commerce market has gradually emerged, and various different operating models have emerged. This article will introduce the five main operating models in the field of cross-border e-commerce to help better understand this market full of potential.
1. C2C buyer model.
Representative companies of the C2C buyer model include Global Shopping, Yangmatou Shopping App and Jiemi. This model relies on buyers to introduce customers to the platform, and then promote platform sales through customer trust and cohesion. In the later stage, if the buyers’ cohesion is strong enough, they can be converted into merchants. However, this model also has some obvious disadvantages, including large cash flow requirements, high management costs, and possible counterfeit problems. However, by investigating and understanding the interface and push methods of a shopping app in advance, you can be more confident in choosing the right platform.
2. B2C model.
Representative companies of the B2C model include traditional express delivery companies such as JD.com and SF Express, which have emerged in the market by transforming into cross-border e-commerce companies. This model is suitable for companies with sufficient funds and hope to expand rapidly, but it may not be suitable for individual merchants. If you are a professional who conducts cross-border operations for your company, you can consider cooperating with these large companies to seize the market trend.
The B2C model is highly competitive and has extremely high requirements for funds, teams, sources of goods and logistics, and requires a lot of cash flow support. In addition, issues such as warehousing and source procurement need to be considered. However, this also represents a potential high return. Large companies usually have abundant sources of goods and can purchase directly from manufacturers to gain price advantages, while mastering the logistics chain and reducing after-sales difficulties and customer complaints. But all of this requires sufficient financial support.
Third, social and purchasing on behalf of others.
The social and purchasing on behalf of others model is very popular on social platforms such as WeChat Moments and Zhihu. This model relies on individual purchasing agents who have established a highly sticky fan base on social media and make profits by purchasing goods on behalf of others. Although this model is relatively independent and one person can quickly start a business, it is highly dependent on external suppliers and difficult to scale.
Fourth, M2C model.
The representative company of the M2C model is Tmall International, which provides a platform for merchants to settle in and provides transaction guarantees and platforms for consumers and merchants. Although this model can reduce unnecessary operating links and attract many merchants to settle in, it takes a lot of money and human resources to build and maintain such a platform. Despite the huge challenges, if there is sufficient supply, settling in Tmall International may be a good choice.
5. Sale model.
Representative companies of the sale model include Vipshop and Koala Overseas Shopping. This model is very suitable for overseas shopping. Special sale goods usually come from uncertain sources. If they can be purchased at a low discount price, they can gain profit space in the market. By selling high-quality goods at a lower price, customer stickiness can be improved. This model requires finding the right supplier and being able to reach cooperation to reduce procurement costs.
In short, there are many different operating models to choose from in the cross-border e-commerce field, and each model has its advantages and challenges. When choosing a suitable model, you need to weigh it based on your own funds, team, supply and target market. No matter which model you choose, understanding the market and establishing a sustainable operating strategy will be the key to success. The cross-border e-commerce market is full of opportunities, and I look forward to exploring and developing!