Advantages Analysis and International Operation Strategy for

Cross-Border e-Commerce

Zhang Yi

Wuchang University of Technology, Wuhan, Hubei, 430056, China

Keywords: Cross-border e-Commerce, Advantage Analysis, International Operation Strategy.

Abstract: With the development of Internet, e-commerce has gradually replaced traditional sales industry, and

becomes a new generation business platform. For its evident advantages, e-commerce has changed the

traditional concept of consumption to some extent. However, due to its booming, the market competition of

e-commerce is fiercer in recent years. E-commerce should have the whole world in view as China’s

domestic market could not meet the market demands. Thus, cross-border e-commerce model emerges.

Additionally, it also needs further excavation to analyze international operation strategy. Based on the

advantages of cross-border e-commerce, the work discussed the future development of cross-border e-

commerce and the way to perfect international operations system.

1 INTRODUCTION

E-commerce is a business model based on the

Internet, where sellers can fully exhibit their products.

Besides, with present technology, online payment has

been achieved, which enables customers to enjoy

shopping without ever leaving their homes. Such e-

commerce is the future development direction. In

order to make profit from it, many industries have

carried on e-commerce transformation. Constant

development of China’s market economy brings up

plenty of large-scale e-commerce sites, resulting in

the fierce competition of e-commerce in some areas in

China. Facing with the worldwide Internet sales, e-

commerce operators should not just focus on

domestic market. Therefore, cross-border e-commerce

begins to rise and gradually reflects its unique

advantage, and its international operations strategy

has also been attached great importance. This work

discusses mainly the advantages and international

operation strategy of cross-border e-commerce.

2 CONCEPT AND MODEL

ANALYSIS OF CROSS-BORDER

E-COMMERCE

At present, the interpretation of cross-border e-

commerce model and its advantages analysis is a

way to further discuss e-commerce model. In fact, e-

commerce model has emerged long ago, while some

industry didn’t adopt it. It is believed that with the

development of the Internet as well as science and

technology, e-commerce will inevitably enter the

whole field. As the inevitable trend of future

economy and operation system, e-commerce model

should be explored in depth.

2.1 Page Setup

In traditional business concept, product storage and

distribution channels are highly emphasized. In such

business model, salesmen are an important role and

occupy a large proportion. However, the obvious

drawback of traditional business models is that only

the entrepreneurs with abundant capital are invited,

while keeping small-scale individuals out. The reason

is that it is difficult to get through traditional sales

channels, and plenty of money should be invested on

advertising, thus increasing operating costs. In

addition, setting up and maintaining shops and

warehouses require a lot of money, so small

companies are unable to continue normal operations

fundamentally. Therefore, the traditional business and

market belongs to the minority.

However, the emergence of e-commerce has

fundamentally changed the concept, thus enabling

more people to venture. So what is e-commerce?

What advantages does E-commerce have?

308

Yi Z.

Advantages Analysis and International Operation Strategy for Cross-Border e-Commerce.

DOI: 10.5220/0006024903080311

In Proceedings of the Information Science and Management Engineering III (ISME 2015), pages 308-311

ISBN: 978-989-758-163-2

2.1.1 Concept of e-Commerce

With regards to e-commerce, it is an internet platform

where sellers can display their low cost products. By

browsing these web pages, buyers can choose their

favorite products and purchase them through online

transactions. In addition, the types of payment are

relatively flexible. Both direct payment and secured

transaction by third party are all allowed, making

online shopping more convenient. E-commerce, to be

exact, is an internet platform where sellers can sales

their products to buyers. With the development of e-

commerce, different business models have emerged,

in which the main management models are B2B, B2C

and C2C. Among them, B2B is business-to-business

e-commerce model, generally aiming at the

relationship between manufacturers and dealers. B2C

is actually business-to-customer model, which aims at

the relationship between dealers and end buyers.

While C2C is relatively common, the online Taobao

shop is the simplest C2C model.

2.1.2 Advantages Analysis of e-Commerce

With the advantage of internet, e-commerce has

achieved that customers can buy the right products

without leaving home. It can be said that it is a

business model considering from the customers. And

with the door-to-door service, customers can get their

products at homes. Additionally, customers can

search their right products through cloud search

engine, and can also do a direct comparison for the

numerous products. Therefore, purchasing the

products without leaving home, lots of time has been

saved. Through multiple comparisons, customers can

purchase the products with high performance-price

ratio.

In terms of the sellers, they can sell their goods

through websites to reduce inventory, thereby

reducing costs. Most important, sellers can achieve

sales without storefronts. Such sales mode can largely

reduce the operating costs. In transaction process, the

salesmen can also be the customer service staff and

managers. Further, this low cost e-commerce

transaction model also provides the entrepreneurial

opportunity for many meddle-small enterprises, or

even the sellers with small capital.

Thus, the advantages of e-commerce model are

obvious, no matter from the perspective of sellers or

from the customers.

2.2 Concept and Model Analysis of

Cross-border e-Commerce

Cross-border e-commerce, the requirement of future

development, is operated based on the e-commerce

model. Therefore, to analyze cross-border e-

commerce, the background and occurring causes

should be discussed firstly, so as to further explore its

business model.

2.2.1 Background of Cross-border

e-Commerce

With the development of internet and science and

technology, and people's consumption concept

keeping with the times, e-commerce occupies most of

the market. Because of this, pileup of e-commerce

appears in market. That is, where there is an

advantage, there will be competition. Competition

would undoubtedly lead to market saturation, then,

the stagnancy period of market would appear, thus

affecting the sellers’ profits. Therefore, from the

analysis of e-commerce market, there are some

drawbacks, including competing saturation. To reduce

the market competition pressure in China, e-

commerce should have the whole world in view. That

is the reason cross-border e-commerce emerges.

2.2.2 Concept Analysis of Cross-border

e-Commerce Model

Analysis of the appearance background of cross-

border e-commerce is conducive to understanding its

concept. In fact, cross-border e-commerce is to

globalize e-commerce and to let more products flow

into market, thus reducing local competition pressure.

Then, it is possible to realize cross-border e-

commerce with the global Internet.

3 ADVANTAGES ANALYSIS OF

CROSS-BORDER

E-COMMERCE MODEL

The background, concept and basic models have been

explored above. Then, what are the advantages of

cross-border e-commerce?

3.1 Cross-border e-Commerce’s

Effective Capital Transfer

Capital is an important factor that can affect economy.

When the expansion of capital occurs in a certain

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region, capital transfer is needed, and the transfer

ways are market production and occupation. China's

reform and opening up was aimed at attracting foreign

investment, so as to realize the transfer of foreign

capital. The concept of economic globalization is

deepening. Cross-border e-commerce is undoubtedly

in accordance with the concept of capital transfer,

thus to achieve the global economy integration.

3.2 Cross-border e-Commerce

Realizing Value Maximization of

Commodity

That the scarceness is precious is the basic theory of

market. Cross-border e-commerce is to achieve the

value maximization of commodity to a certain extent.

Through such internationalization form, the domestic

commodity can be sold to foreign buyers, thus

allowing them to enjoy shopping without leaving

home. Through cross-border e-commerce, the goods

that are not popular in domestic can be more valuable.

So, cross-border e-commerce seems necessary.

Thereby, in terms of maximizing the value of

commodity, cross-border e-commerce model played a

crucial role. It is also the advantage of cross-border e-

commerce model.

3.3 Cross-border e-Commerce

Effectively Reducing Domestic

Abnormal Competition

In fact, cross-border e-commerce model has enjoyed

vigorous support from domestic. The fast rising e-

commerce has posed a fierce competition in domestic

market, which has hindered its development on the

contrary. Then, cross-border e-commerce is an

appropriate solution to relive such pressure. Besides,

the overseas market is large. Therefore, transferring

the competitive market to foreign countries will

certainly relive the competition pressure in domestic.

In sum, the advantages of cross-border e-

commerce model are obvious. Especially for

economic globalization, it is more significant.

Moreover, it can boost the international market so as

to maximize the value of goods. Throughout the

economic market, cross-border e-commerce model

can effectively plan regional markets, thus achieving

the economy integration.

4 STRATEGIES OF

INTERNATIONAL

OPERATIONS

The above analysis has clearly revealed the

advantages of cross-border e-commerce, as well as its

operation model. So, how to operate this business

model more stable and reasonable is still very

important. It is required that international operations

should establish certain specifications, thus ensuring

the rationality and legitimacy of cross-border e-

commerce.

4.1 International Operations System of

Cross-border e-Commerce

In fact, cross-border e-commerce model in China has

taken shape. In domestic, AliExpress and Dhgate are

all good cross-border e-commerce models. In such

companies, the operators only with certain English

foundation could sell the products to foreign

countries, thereby reducing domestic competitive

pressures. Therefore, the primary conditions of cross-

border e-commerce are certain platforms and

channels. As the precedent for e-commerce in China,

Alibaba is also the pioneer in cross-border e-

commerce. For cross-border e-commerce, sound sales

channels and express are both important. Therefore,

cross-border e-commerce model is similar to general

e-commerce. The only difference lies in the product

sales. Because certain credit and guarantees problems

of products will be caused while passing by the

customs. In addition, the expensive delivery charges,

in a way, will inherit the development of cross-border

e-commerce. However, cross-border e-commerce

model is not mature enough—it is understandable that

there are some problems. Therefore, continuous

improvement is necessary in the development, so as

to solve the problem of cross-border e-commerce

fundamentally. Once cross-border e-commerce

develops in a good environment, it will also drive the

global economy.

4.2 International Operations Strategy

of Cross-border e-Commerce

In terms of operations, cross-border e-commerce

model has obvious advantages. Even so, some

problems still exist, such as the constraints of product

and mailing. In the mailing process, losing pieces

often occur, which will harm the benefits of sellers, as

well as the emotion of buyers. Therefore, to ensure

the smooth operation of cross-border e-commerce, the

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existing problems should be solved. That is, in

operational mode, operators should choose some

sources that are relatively rare in foreign countries,

thereby enhancing the competitiveness abroad. In

addition, some sources are forbidden in some

countries to protect local region, thus influencing the

development of cross-border e-commerce. However,

the overall direction is good.

5 CONCLUSIONS

Based on the analysis of the e-commerce model, the

work further explored the cross-border e-commerce,

including its advantages. Analysis shows that cross-

border e-commerce can transfer domestic competition

pressure to foreign countries, thus realizing the

international e-commerce. In addition, for

international management system, the administrators

should broaden the types of product. Also, the

operators should strengthen mailing efficiency and

reduce packet loss rate, thus reducing the pressure that

postage brought to sellers. In a word, the advantage of

cross-border e-commerce is obvious. Especially for

economic globalization, it is more significant.

Moreover, it can boost the international market so as

to maximize the value of goods. Therefore, it is

necessary to strengthen the process of cross-border e-

commerce and to achieve a comprehensive cross-

border e-commerce model as soon as possible.

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Shao Xun, Under the New Situation of E-commerce

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Zhang Lei, The Role of Computer Technology in

Interactive E-commerce Network Consumption [J],

Value Engineering, 2014 (3): 190-191

Zhang Yunfang, Countermeasure Analysis of Corporate

Marketing Channel in E-commerce Environment [J],

Chinese E-commerce, 2013 (22): 3-3

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