The Rapid Growth of Cross-Border E-Commerce Fosters Business Opportunities at Trade Exhibitions

In recent years, cross-border e-commerce has quietly gained significant momentum, driven by the growing number of consumers who prefer purchasing products from abroad. Due to the high costs of time and travel, many customers find it challenging to cross borders to visit distant and mysterious lands like China. As a manufacturing powerhouse that produces a wide variety of components and products, China has become one of the top sellers in the cross-border e-commerce industry. The Shenzhen Cross-Border Trade Expo is a professional event that brings together renowned domestic e-commerce brands, specifically targeting the cross-border e-commerce sector.

Cross-Border E-Commerce

Cross-border e-commerce refers to online trade between businesses (retailers or brands) and consumers (B2C), between two businesses (typically brands or wholesalers), or between two individuals (C2C). This can occur on marketplace platforms like Amazon or eBay. In the past two years, e-commerce has evolved into distributed e-commerce and conversational e-commerce. The former involves posting purchase links on social networks, while the latter is seen as a potential use case for customer service, utilizing technology to facilitate communication. Cross-border e-commerce holds the potential to be the future of e-commerce and a key player in future competition.

Influencing Factors

What are the main risks currently affecting cross-border e-commerce? Fraud is arguably the biggest challenge facing merchants that allow customers to purchase goods from abroad. Therefore, selecting a reliable payment service and understanding the behavior of local customers is crucial. Logistics and reverse logistics are also important and can negatively impact local customers' perceptions of your business. For a company looking to leverage cross-border e-commerce, consistent and predictable logistics are essential. Regulations, as well as local government and tax policies, need thorough examination, as they could potentially have a negative impact on your business.

Opportunities on the Horizon

According to Accenture, by 2020, more than 2 billion online shoppers (representing 60% of the global target population) will conduct 13.5% of their total retail spending online, amounting to a market value of $3.4 trillion (global B2C GMV, with a 13.5% growth rate from 2014 to 2020). Meanwhile, the value of China's cross-border e-commerce stands at $60 billion, and legislation could influence this sector. Government intervention may occur because brands use cross-border e-commerce to bypass local regulatory bodies. As sellers, we can leverage the Amazon platform to conduct our business, directly interfacing with Amazon's backend. This integrates logistics, information flow, and cash flow, offering a simple and user-friendly interface, comprehensive features, and detailed functionality that enhances efficiency while reducing costs.