After exporters in traditional foreign trade enterprises export a large number of goods to foreign countries, the circulation of goods in the local territory must go through the multi-level distribution of enterprises before finally reaching consumers or enterprises, which greatly increases the cost and raises the transaction threshold.
Specifically, when traditional foreign trade enterprises participate in trade, they need to go through manufacturing enterprises, exporters, importers, distributors, wholesalers, retailers and other links before they can reach customers. Therefore, the price of goods is very different from the original price, and the number of buyers decreases. Especially in Southeast Asia, India and other regions, due to labor costs and other reasons, the export cost has dropped relatively, which has put a certain pressure on my country’s exports.
With the rise and development of cross-border e-commerce, customers place orders through cross-border e-commerce platforms, and cross-border sellers can directly send goods to customers, eliminating the middle link, and then the goods between countries are “fairly treated”, which can solve the problems of sellers’ inventory, logistics, customs clearance, etc. In addition, cross-border e-commerce can get rid of the traditional single sales link in this way, use the characteristics of each e-commerce platform for personalized sales, make the export or sales link more and more diversified, and is conducive to the development of the e-commerce industry.
Cross-border e-commerce has achieved direct transactions between multinational companies and between companies and end consumers through such e-commerce transaction and information service platforms, shortened the time of each link, and achieved diversification of export links.