What is the difference between foreign trade and cross-border e-commerce

The basic mode of foreign trade is the B2B direction, which is a product of the primary stage of the development of globalized trade.

The mainstream trade model of cross-border e-commerce is B2C, which is the inevitable result of the development of globalized trade. Cross-border e-commerce breaks the traditional mode of operation of foreign trade.

Two, the main body is different

In the foreign trade market, enterprises expanding overseas market is through the information channel to publicize their goods and services to attract foreign businessmen, so from the point of view of the mode of dissemination, foreign trade belongs to the information flow.

Looking at the cross-border platform, merchants are through the platform or self-built station and other channels, direct release of commodity information, in order to complete the commodity transactions, in this way, cross-border e-commerce is the flow of goods.

Three, the cost is different:

Traditional foreign trade key centralized in a large number of goods sent abroad, and then carry out multi-level distributors in foreign countries, and finally will arrive at the end customer (the company or myself)

Cross-border e-commerce is directly in front of the end customer.

Four, the link is different:

In the foreign trade market, the import and export trade process is complicated. Go are bulk commodities, in the import and export links and other places, many business enterprises do not consider optimizing time and cost.

In cross-border e-commerce, both the time and cost of transportation will affect the final transaction of the goods as well as profits, so businessmen should be in these links up and down the compliments, try to reduce costs and try to improve efficiency.

Fifth, the tax is different:

Traditional foreign trade often involves bulk transactions, so in the customs audit, has been the convenience of tax declarations are more complex, not only involved in the value-added tax and consumption tax.

Cross-border e-commerce as a merchant to face the individual transaction, the tax aspect is a little simpler, sometimes you may only involve a postal tax.