Cross-border e-commerce has the characteristics of globality, intangibility, anonymity, immediacy, and paperlessness. It is an international business activity that involves transaction entities in different customs territories under the open network environment of the Internet. It is an international business activity that completes transactions, settlements, and cross-border logistics delivery through e-commerce platforms to complete transactions.
The main differences between cross-border e-commerce B2C and traditional foreign trade are as follows:
1. Traditional foreign trade is mainly “container” type large-volume transactions; cross-border e-commerce B2C is a small-volume, multi-batch, fast-operating enterprise;
2. Cross-border e-commerce can enable small and medium-sized importers to divide large-amount purchases into small- and medium-amount purchases and convert long-term purchases into short-term purchases to meet the need for risk diversification.
Advantages:
(1) Compared with traditional trade methods, small-scale cross-border e-commerce brings richer profit margins;;
(2) Cross-border e-commerce, as the best combination of information technology and commercial activities, helps enterprises reduce operating costs, improve operating efficiency, and to a certain extent, through efficient acquisition of information, timely and convenient communication with customers, and effective integration of internal and external resources. to expand profit margins;
3. The e-commerce environment in developed countries such as Europe and the United States is already quite mature, and a large number of companies participate in online transactions. This also provides an excellent market for domestic and foreign trade companies to transform into e-commerce;
4. Small cross-border e-commerce can reduce many complex links and costs in traditional import and export business processes to a certain extent. In addition, the popularity of online payment tools and the improvement of cross-border logistics channels have made it possible to bypass many intermediate links in traditional international trade and create considerable profit margins for small cross-border e-commerce.