The difference between cross-border electronic commerce and traditional international trade

The difference between cross-border e-commerce and traditional international trade lies in the different transaction methods, transaction objects, commodity types, costs and taxes.

1. transaction mode: traditional international trade is mainly carried out by means of logistics such as sea transportation and air transportation, while cross-border electronic commerce conducts it through the Internet. In traditional international trade, goods need to go through multiple transit and inspection, and the whole transaction process is complicated, while cross-border e-commerce can complete the transaction without going through these complicated procedures, just placing an order online.

2. Transaction object: Traditional international trade is usually a transaction between enterprises, while cross-border electronic commerce is a transaction between individuals and enterprises. In traditional international trade, both parties need to sign a contract and pay a deposit, and the whole transaction process takes a certain amount of time and cost, while cross-border e-commerce can complete the transaction directly through online payment, saving time and cost.

3. Commodity types: traditional international trade is dominated by bulk commodities, such as oil and minerals, and cross-border e-commerce is dominated by small commodities, such as clothing and electronic products. In traditional international trade, the transaction volume of goods is large and the transaction amount is high, while cross-border e-commerce is mainly small transactions with relatively low transaction amount.

4. Different costs: traditional foreign trade concentrates a large number of goods, and then develops multi-level distributors according to foreign logistics industries, and finally reaches the end customers (companies or themselves); Cross-border e-commerce is directly facing end customers.

5. Taxes are different: Because foreign trade often involves large transactions, it is more complicated to review and declare taxes at the customs, involving not only value-added tax but also consumption tax. Cross-border electronic commerce, as a business-to-person transaction, is simpler in taxation. Sometimes you may only be involved in a postal tax.