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Unit1
An Overview of Cross-Border E-Commerce

1.1 Basic Knowledge about E-Commerce and Cross-Border E-Commerce

1.1.1 Basic Concepts

Electronic commerce (e-commerce)refers the buying and selling by companies and individuals of goods and services over the Internet.E-commerce operates in different types of market segments and can be conducted over computers,tablets,smartphones,and other smart devices.Nearly every imaginable product and service is available through e-commerce transactions ,including books,music,plane tickets,and financial services such as stock investing and online banking .Almost everything can be purchased through e-commerce today; for this reason,e-commerce is often highly competitive.It can be a substitute for store,though some businesses choose to maintain both.E-commerce operates in several market segments including business-to-business business-to-consumer consumer-to-consumer ,and consumer-to-business .

Cross-border e-commerce is international e-commerce.It is literally "selling across a border using e-commerce" as opposed to domestic e-commerce transactions.As a retailer,cross-border e-commerce is defined as selling goods from a website of a national store in another country to another party.

Cross-border e-commerce can be used by any seller looking to:

·expand their business;

·explore new markets and buying trends;

·export what they offer and reach a bigger audience.

1.1.2 Types of Cross-Border E-Commerce

Types of cross-border e-commerce usually include:

(1)Business-to-Business(B2B)

B2B transaction is where one business is selling to another business,which can include bulk pricing,larger quantity orders,or specialty products that an average consumer would never need on a day-to-day basis.B2B transactions create powerful and long-lasting relationships between each side when orchestrated correctly.Typical products that are involved in B2B transactions include office supplies,gasoline and oil,medical equipment,airplanes,ships,and military equipment.These items are large in physical size or quantities needed which would be overwhelming for an average consumer to purchase on his or her own.

(2)Business-to-Consumer(B2C)

The most traditional transaction type from a consumer's point of view is the B2C model.This model mimics a purchase that made in-store at a brick-and-mortar location but occurs entirely online.Businesses sell goods straight to consumers through their website.Online stores are able to list multiple products and SKU s(stock keeping units)which give customers many options to pick and choose from during their buying experience.This allows for more options for a customer to research and find the perfect fit.Clothing,electronics,and outdoor recreational equipment are a few of the products effectively sold online in the B2C.The B2C transaction is not limited to products,but services are quite often distributed in this fashion as well.Businesses may offer services like financial advising,tutoring,subscription memberships,and others to grow their presence online.

(3)Consumer-to-Consumer(C2C)

With the rise of e-commerce,much innovation has taken place in many forms.Platforms like eBay,Craigslist,Grailed,and even parts of Amazon allow consumers to sell to consumers.This bridge allows men and women to sell goods without setting up a personalized store.This results in fast and easy individual transactions allowing for niche items and used goods to be sold online.

In the C2C model,the platform itself does not own or sell any products.Rather,it serves as the bridge between the consumer selling and consumer buying.Platforms act as a third party to oversee and authorize the transaction to ensure it goes smoothly.Popular platforms become successful due to a high amount of users and traffic while offering a solution to get rid of goods with little cost and overhead .Selling an item on these sites can be as simple as opening the app or site ,creating an account,listing the item,and waiting for another consumers to purchase.No additional marketing is needed which leaves more profit in the listers' pockets.

This type of model is becoming increasingly prominent with the inception of different marketplaces looking to gain a share of the market opportunity.C2C models increase consumer buying power by eliminating many steps of the buying process.

1.1.3 Features of Cross-Border E-Commerce

(1)International Expansion Opportunities

Selling overseas opens your brand up for bigger and better business opportunities.Take Apple for instance.The company has an online store,Apple.com,where international consumers purchase products specific to their locations.By accessing these newer markets,the company gains a competitive edge ,increasing its overall bottom line .

(2)Demand All Year Round

Centralizing business opportunities in one area can be devastating ,especially in seasons when the demand for goods decreases.Cross-border e-commerce alleviates such problems by allowing you to take advantage of the different market cycles around the globe.

(3)Increased Access to End Customers

Expanding globally means gaining access to more end consumers.FUBU,started in Daymond John's(the CEO)basement,has now tapped into the global market,selling to millions of consumers across borders.

(4)Shipping Complications

While shipping within the country,most taxes and laws are the same,so the entire process is relatively straightforward .However,when shipping across borders,it becomes more challenging,as new taxes,laws,and import and export rules are added to the picture.

(5)Language and Currency Differences

In order for an e-commerce seller to support international users,the websites should be able to support international languages as well as currencies.This poses a challenge for customers from countries whose language and currency aren't supported,as they won't be able to make purchases. D1JsiGbp88i83oOCKVjEctX0v5hg1Wkvw1I4loi5AxuNghTSq0LRFxXvAUyynYdR

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