The status quo of the development of cross-border e-commerce in my country

2021-09-03

The status quo of the development of cross-border e-commerce in my countryAgainst the background of the global financial crisis in 2008, coupled with the appreciation of the renminbi and the continuous increase in labor costs, my country’s traditional foreign trade industry has suffered a great blow, and the growth rate of imports and exports has dropped significantly. Many foreign trade companies, especially small and medium foreign trade companies, have closed down one after another. In sharp contrast, cross-border e-commerce has shown a good momentum of development because of its advantages such as fewer intermediate links, low prices, and high profit margins. The reasons are as follows:  Traditional foreign trade exports generally include six links: "Chinese factories-Chinese exporters-foreign importers-foreign wholesalers-foreign retailers-foreign consumers". Under this model, the largest share of profits in foreign trade is obtained by circulation intermediaries. For example, a keychain priced at 1 yuan in the Yiwu market will sell for 1 Australian dollar (about 5 yuan) after being exported to Australia. , 4 yuan of which is obtained by middlemen after excluding logistics costs. After the introduction of cross-border e-commerce, the export link can be simplified to "Chinese factory-foreign retailer-foreign consumer or further simplified to "Chinese factory-foreign consumer", bypassing many foreign trade intermediaries. On the one hand, the price of exported goods can be reduced. Further decline and improve the competitiveness of China’s products in foreign markets. According to statistics from iResearch, China’s cross-border e-commerce import and export transactions amounted to 2.3 trillion yuan in 2012, a year-on-year increase of 32.0%. With the rapid development of e-commerce and the general trend of China's e-commerce globalization, the scale of China's cross-border e-commerce transactions will continue to develop at a high speed, and the proportion of e-commerce in China's import and export trade will become larger and larger [2].In addition, the Chinese government attaches great importance to the development of cross-border e-commerce. At present, in addition to the first batch of cross-border e-commerce pilot cities in Shanghai, Chongqing, Hangzhou, Ningbo, and Zhengzhou, Guangzhou, Shenzhen Qianhai and Qingdao have also won Approved cross-border e-commerce pilot cities. In 2014, a series of national measures on cross-border e-commerce will be gradually implemented. This year, more cities with suitable conditions will apply for cross-border e-commerce pilot projects.Although the development of cross-border e-commerce in my country presents a very good situation, and some people even boldly predict that e-commerce giants in cross-border trade may appear in China, we must be clearly aware that the development of cross-border e-commerce in my country is still in its infancy At this stage, there are still many problems.

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