What is cross-border e-commerce?
Now, several popular ways to increase after sleep income in China are nothing more than WeChat official account, Taobao buying and selling virtual assets, opening Tiktok to save traffic, and even Zhihushang's recommendation of good things. According to experts from all parties, after a period of accumulation, an automated cash flow that requires minimal time and effort to maintain can be formed, known as post sleep income.
In fact, in today's fully internationalized market, the method of earning income after sleep has long been unrestricted by national boundaries, so this business has emerged. According to Baidu Baike, cross-border e-commerce refers to an e-commerce platform and online transaction platform where transaction entities belonging to different customs areas complete transactions, make payments and settlements through e-commerce platforms, and deliver goods and complete transactions through cross-border logistics.
The main trading entities of cross-border e-commerce
Transaction subject 1 and transaction subject 2 can be two individuals who are not in the same geographical location, and now developed e-commerce platforms will be the main way to connect the two transaction subjects. Therefore, cross-border e-commerce is an important part of international trade. It's just something that used to require multinational corporations or listed companies to accomplish, but with the development of the internet, it can now be done by individuals. The ability of individuals to generate traffic is also fully utilized by e-commerce platforms, forming the current cross-border e-commerce service model.
Below, FBA will be used as an example to explain what cross-border e-commerce is and the initial investment it requires.
The full name of Amazon FBA is Fulfilled By Amazon, which literally means "Amazon Complete.". There are two main things that Amazon can accomplish:
Outsource to Amazon. Amazon membership
The main tasks of Amazon FBA's three trading parties
Outsourcing to Amazon is a service for sellers, and it is also the main difference from domestic shopping platforms.
After receiving a seller's shipping request, Amazon will receive, pick up, and classify the products for storage in Amazon's own warehouse. After the product is sold, Amazon will assist the seller in shipping and be responsible for delivering the product. Amazon is also responsible for product return and exchange services.
Amazon's approach frees sellers from many aspects of warehousing and shipping. Sellers are primarily responsible for ensuring the quantity of warehousing and promoting their products.
Amazon Gold Membership refers to the customer group that sellers will primarily contact after joining the Amazon FBA program. According to statistics, about half of Americans are Amazon Gold Medal members, with a base of approximately 95 million. Gold seller members enjoy a 2-day delivery service and spend twice as much as non members.
It can be seen that Amazon, in other words, is a large warehousing and shipping company. Of course, the best part of Amazon is still the relationship between this platform and their gold medal members. Through the Amazon FBA project, individual sellers can access a large number of high-quality customer service from Amazon. It can be said that the Amazon FMB project has created a win-win situation: sellers are profitable, Amazon is profitable, and Amazon's gold medal members enjoy high-quality service and products. Understanding this is the beginning of understanding the essence of Amazon FBA.
As a seller, the responsibilities can be divided into the following three steps:
It can be seen that there are many key points that sellers need to learn at each step. Being able to update their learning abilities is the first step in doing a good job in cross-border e-commerce. For example, there are many articles and videos explaining how to find a popular product, but they overlook the steps of Amazon's sales. Amazon's competition now no longer relies on early traffic and online rates, so it will emphasize the necessity of creating its own product brand.
Moreover, as a cross-border e-commerce company, it is important to have a clear awareness that competitors are often not domestic sellers, but domestic sellers in the United States. They have a deeper understanding of domestic consumption in the United States and also have a certain geographical advantage. As a Chinese seller, it seems that the obstacles to overcome are not only culture, but also language, systems, and knowledge systems. But it is precisely in this way that it also brings immeasurable potential benefits to courageous Chinese sellers in the future.