With the rapid development of the Internet and technology, import cross-border e-commerce is becoming an important new field in China’s import trade. Compared with traditional import trade, import cross-border e-commerce has a more convenient and faster customs clearance process and a more flexible trade model. Therefore, more and more companies are turning their attention to import cross-border e-commerce and seeking transformation. However, when many people first come into contact with import cross-border e-commerce, they do not fully understand its definition and advantages. They feel that this model is similar to traditional trade, but different, and also different from general e-commerce. This article will explain import cross-border e-commerce in detail from three aspects: definition and background, transaction process and cost, and tax policy to help readers understand this concept.
1. Definition and Background
Cross-border e-commerce, also known as “cross-border shopping” or “overseas shopping”, refers to a business model that realizes cross-border transactions through an Internet platform. Consumers can directly purchase goods from other countries or regions through import cross-border e-commerce platforms without going through traditional import trade channels. The rise of this trading model mainly benefits from globalization, the development of Internet technology, and the diversification of consumer demand.
Compared with the traditional import trade mode of transporting goods from the exporting country to the importing country through traditional channels, sea and air transport, and going through customs clearance, inspection and quarantine procedures, import cross-border e-commerce is simpler and more efficient.
2. Transaction process and cost
Transaction process: The transaction process of import cross-border e-commerce is relatively simple, including consumer orders, platform review, payment, customs clearance, delivery and other links. Traditional import trade involves more links, including manufacturer stocking, exporter customs declaration, transportation, importer customs clearance, transportation and other links.
Cost: Since import cross-border e-commerce eliminates the intermediate links of traditional import trade, it has cost advantages. Consumers can directly purchase relatively low-priced overseas goods through cross-border e-commerce platforms. In contrast, traditional import trade requires more intermediate links, such as transportation, warehousing, customs declaration, etc., and the cost is relatively high.
There are also differences in transaction efficiency between import cross-border e-commerce and traditional import trade. Import cross-border e-commerce has higher transaction efficiency and can achieve fast transactions and delivery. Since e-commerce platforms are used for transactions, import cross-border e-commerce can trade 24 hours a day.
3. Tax policy
Import cross-border e-commerce adopts the “bonded stocking” model, where goods are stored in domestic bonded warehouses and cleared and delivered after consumers place orders. Consumers can enjoy lower tax rates and tax incentives. Traditional import trade needs to pay taxes and fees in accordance with relevant national tax policies.
In general, as a popular business model in recent years, import cross-border e-commerce meets the diversified needs of consumers, conforms to the trend of global development, and has broad prospects. It brings new opportunities and challenges to sellers.