What are the differences and advantages between cross-border e-commerce and traditional cross-border trade?

1. cross-border electronic commerce has the function of eliminating middlemen and directly facing local consumers across some foreign channels, which greatly improves the situation that most of the profits in the traditional foreign trade model are seized by foreign channels. It is estimated that the net profit rate of foreign trade of domestic-funded enterprises in cross-border electronic commerce can be increased from the traditional 5% to 50%.

2. cross-border electronic commerce is not limited by geographical space and is less affected by trade protection. Foreign trade enterprises can reduce the establishment of overseas branches, greatly reduce the cost of overseas market expansion, make the overseas market scale of enterprises further expand than before, and small enterprises also have the opportunity to carry out international trade.

3. It can reduce the frequency of negotiation abroad and greatly reduce the transaction cost. Replacing the traditional overseas marketing method with online marketing not only saves the marketing cost, but also achieves better marketing effect with the rich means and accurate positioning of online marketing. In addition, network marketing can also bypass the relevant procedures stipulated by the local government for traditional advertising marketing and simplify the procedures of marketing activities.

4. You can directly obtain overseas market information and user feedback, optimize overseas customer relationship management, make personalized customization, and improve the sensitivity of overseas market response.