Explain the advantages and disadvantages of cross-border e-commerce with microeconomics.

Advantages:

1, the flow brought to the welfare society into transactions, but the long term still need to have a strong supply chain capabilities. Some special brands such as Kao, the essence or commercial retail and consumer awareness. E-commerce development so far, regardless of import and export or online and offline, the platform is responsible for investment.

2, user trust is high, because these merchants need to have overseas retail qualifications and authorization. And the C2C Darren economic model can promote user sedimentation at the spiritual social level.

3, there is a global high-quality supply chain logistics system and a wealth of SKUs; the pain point is that cross-border e-commerce is ultimately to compete in the domestic conversion of the ability to sell, the grasp of the local user's consumer demand is particularly important, whether Amazon can really do a good job of local sinking remains to be considered.

Weaknesses:

1, and the pain point is that, coupled with the fact that there is no original joint venture in China and the retail system influence, cooperation can be more direct and flexible.

2, low gross profit, evening out. Small and medium-sized micro-merchants including buyers, circle of friends on behalf of the purchase, and some small and medium-sized trade merchants. With the strength of the various large platforms to join, most of the main Japan and South Korea standard products, especially the survival of small and medium-sized Korean micro-merchants will be thinner and thinner margins, have to rely on a variety of platforms, the strategic dividend stationed in the cooperation, *** with the education of the user to cultivate the market.

3, Jingdong, Jumei, the upstream supply chain is not stable, the price is basically transparent, can enter the goods according to the different policies around the restriction, such as Guangzhou can not have health care products and cosmetics entry. At the same time there is financial pressure. In the past year, traditional retailers, domestic and overseas e-commerce giants, startups, logistics service providers, and supply chain distributors have entered the market.