Cross-border e-commerce is a revolutionary force in today’s international trade. It has unique characteristics and redefines the way global business exchanges. This article will explore the four major characteristics of cross-border e-commerce, namely directness, small batches, high frequency and high profitability.
1. Directness: shorten the transaction chain and reduce costs.
Cross-border e-commerce has achieved direct contact between domestic and foreign companies through foreign trade B2B and B2C platforms. This feature subverts the traditional international trade model, in which goods need to be circulated in stages and through multiple intermediate links through domestic exporters, foreign importers, wholesalers, retailers, and domestic and foreign companies before they can be delivered to foreign consumers. The directness of cross-border e-commerce not only shortens transaction time and reduces intermediate links, but also greatly reduces transaction costs.
For example, cross-border e-commerce such as STA R DAY adopts the B2C model, allowing consumers to purchase goods directly from abroad, eliminating cumbersome intermediate links and making international trade more efficient and convenient.
2. Small batches: The sales threshold is lowered and consumers benefit.
The batch size of cross-border e-commerce is usually very small, and there may even be only one commodity. This feature expands the consumption surface, lowers the sales threshold of the platform, and enables more consumers to enjoy the convenience of international commodities. Compared with the large-scale procurement and centralized supply of traditional foreign trade, the small-batch sales of cross-border e-commerce are more flexible and more in line with the needs of personalized consumption.
3. High frequency: instant procurement and real-time interaction.
Cross-border e-commerce has the characteristics of high frequency due to its direct transactions and small batches, as well as the fact that it crosses all intermediate links and interacts with the market in real time. Consumers can make instant purchases anytime and anywhere without having to wait for the arrival of large quantities of goods. This high-frequency trading method makes the market more active and accelerates the circulation of goods.
4. High profit rate: point-to-point transactions, reducing intermediate costs.
The reason why cross-border e-commerce can achieve high profit rates is mainly due to its point-to-point trading model. Cross-border e-commerce skips all the intermediate links in traditional international trade, such as wholesalers and retailers. Therefore, although the final selling price may seem lower, the profit rate is many times higher. According to relevant data, the profit rate of traditional international trade is usually between 5% and 10%, while the profit rate of cross-border e-commerce can usually reach 30% to 40%.
This high profit rate is one of the reasons why cross-border e-commerce attracts more and more manufacturers and entrepreneurs. By selling goods in the global market, companies can get higher returns without having to rely on complex supply chains and middlemen. This also encourages more people to actively participate in cross-border e-commerce and creates more business opportunities.
In summary, cross-border e-commerce has set off a revolution in the field of international trade. Its characteristics such as directness, small batches, high frequency and high profitability have changed the traditional trade model and made the market more flexible and efficient. As cross-border e-commerce continues to develop and grow, it will continue to shape the future of international trade and bring more opportunities and convenience to companies and consumers.