[Paper] Analysis of the Advantages and Shortcomings of the Current Cross-border E-Commerce Overseas

Date: 2018-05-07
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Overseas warehouse as a cross-border electricity crack high logistics costs, delivery cycle is long, the effective way of improving localization consumers shopping experience, in the process of promoting international trade towards the borders has important strategic significance.

This article analysis the cross-border business outside storage development advantages and disadvantages of the battery, emphatically from the current problems in the development of overseas warehouse, to perfect the countermeasure and the suggestion is put forward, to promote the healthy and orderly cross-border electricity industry in China, the sustainable development.

Key words: cross-border e-commerce; overseas warehouse; advantages and disadvantages; analysis countermeasures.

Classification number :F724.6 document code :A article number :2096-0298(2017)10(c)-060-02.

With the continuous development of cross-border e-commerce industry, logistics bottleneck has become an important obstacle to consumers' shopping experience.

Due to the international characteristics of cross-border e-commerce, the logistics service is more demanding.

In reality, cross-border e-commerce enterprises, through overseas construction of warehouses or leasing warehouses, to optimize the logistics distribution system.

For example, B2B and B2C platforms such as eBay and taobao have solved cross-border logistics and distribution management by self-supporting overseas warehouses or relying on third-party overseas warehouses.

However, whether it is proprietary or renting overseas warehouse mode, it also faces many advantages and disadvantages while meeting the differentiated needs of consumers.

For example, the overseas warehouse construction mechanism is not perfect, the fund is insufficient, the legal environment is not perfect, the inventory is unmarketable, the risk is large, the allocation efficiency is low, etc., but it restricts the healthy development of overseas warehouse.


Analysis of the advantages and disadvantages of cross-border e-commerce.

1.1 advantages of overseas warehouse.

The ultimate goal of overseas warehouse construction is to solve the problem of consumer localization shopping experience and enhance the competitiveness of cross-border e-commerce enterprises.

Therefore, its advantage mainly displays in: for export cross-border electricity business enterprise, its advantage is prominent, one is able to achieve higher benefits from commodity prices, such as eBay in overseas warehouse commodity prices are higher than 30% of the direct mail goods, profit margins are obvious.

The second is to optimize the e-commerce supply chain system through overseas warehouses. For similar products, overseas warehouse delivery is 3.4 times higher than that in China.

Third, through overseas warehouse delivery, can reduce the delivery time, improve the delivery time.

The fourth is to use the overseas warehouse to quantify the storage space, and can concentrate the shipping method to reduce the freight of the single piece of logistics, greatly reduce the warehousing and distribution costs.

The fifth is to use the overseas warehouse centralized transportation mode, which can realize the unified management of the weight, volume and price of different goods, especially in the return and replacement service.

Similarly, in overseas warehouse logistics mode, for consumers the advantages: on the one hand, provide consumers with more goods abroad, to break the traditional single, parcel delivery volume, weight limit;

On the other hand, it can provide fast and convenient shopping experience for consumers, and the receiving time is shorter, the return and replacement and after-sales service are more convenient.

1.2 disadvantages of overseas warehouse.

Of course, there are many problems and deficiencies in the construction of overseas warehouse model for cross-border e-commerce enterprises.

The first is the resistance of international import protectionists.

As cross-border electricity business outside storage construction, large quantities of imports of goods to their traditional business impact, caused the stakeholders resist inclination, together with our goods in many defects in aspects of intellectual property rights, product safety, facing the more frequent trade disputes.

2 it is under the overseas warehouse building enterprises need to responsible for foreign trade, customs clearance of goods, and many other items, because the traditional destination countries import trade made by overseas importers, but for overseas warehouse logistics distribution mode, these formalities be handled by the cross-border electricity is proud.

At the same time, in the customs clearance mode, the traditional small package is completed by the post office, and for bulk shipment of overseas warehouse, the way of customs clearance is stricter and the certification system is more complicated.

Third, the management and service capabilities of cross-border e-commerce are more demanding.

From overseas warehouse management process, the goods to overseas warehouse operation subject to management, and is responsible for the warehousing, logistics and distribution business, the goods have to be quick, accurate and real-time management, the information needed to higher technical level.


The development of cross-border e-commerce is a prominent problem.

2.1 difficulties in cross-border payment and capital settlement.

Because of the overseas warehouse business service for foreign users, more for cross-border payments, due to the limited domestic payment brand's recognition abroad, mainly rely on overseas payment Visa, mastercard and other international card.

Although our licence to distribute, safe also on cross-border payments and allow third-party payment institutions provide foreign exchange funds to sell the business, but from the point of existing cross-border payment platform, for Visa, Master card, PayPal, such as monopoly, set by the organization of the international credit card payment formalities rate is higher, such as Visa every charge the poundage of 2% ~ 3%;

The handling fee of PayPal is as high as 3%~5%.

These additional fees, mostly by e-commerce platforms or merchants, have increased the cost of payment.

In addition, because domestic payment tools are not accepted overseas, customs and tax services cannot be handled, resulting in the problem of settlement.

2.2 overseas warehouse enterprise fund chain is not stable.

Due to the construction and management of overseas warehouse need high cost, such as Britain, Germany, Australia and other countries overseas warehouse workers $3 per hour minimum wage, and America's warehouse workers the minimum $15 per hour, the five times higher than domestic warehouse workers wages.

Rents are high in warehouse leasing.

For example, the annual rent of German overseas warehouse is $60 to $100 per square meter;

For $100 to $100 in the United States, Australia will be $130, plus other hydropower and other miscellaneous fees, many cross-border electricity business enterprise to provide relevant proof there will be a high security, the resulting capital pressure, also let enterprise overtaxed, appear even unstable capital chain risk.

2.3 imperfect legal supervision.

There are also many legal barriers to the construction of cross-border e-commerce warehouse, especially the differentiation of the standard of legal norms and the imperfect supervision system.

For example, in the Russian overseas warehouse, nearly half of the enterprises choose "gray customs clearance" to avoid normal customs clearance procedures and fees.

However, the "gray customs clearance" is not protected by law, and may be traced by Russian prosecutors and customs at any time.

At the same time, some countries for Chinese cross-border companies formulated strict rules, such as Brazil on Chinese goods more than $50 a 60% tariff, Russia to the duty-free entry package in China price, more than a 30% tariff price part.

In addition, due to the imperfect legal system, the problem of illegal tax evasion and tax evasion is frequent, which also affects the international image of overseas warehouse.

2.4 the level of technical management is relatively low.

In view of the current situation of technology management of cross-border overseas warehouse, China's enterprises have adopted an ERP procurement system, which is liable to make mistakes and lead to more customer complaints.

By using event management software, automatic monitoring of transportation links of overseas warehouses can be realized to improve management efficiency.

In addition, due to the large gap between overseas warehouse operation standard and international comparison, for example, in stocking management, it is often caused by overloading due to low price, which leads to unmarketable sales.


We will improve the countermeasures for the development of cross-border overseas warehouses.

3.1 build a warehouse environment with the construction of laws and regulations.

Overseas warehouse from the legal environment to perfect the construction and development needs to provide good development platform, our country should start from the construction of logistics, warehousing law, combining the reality of overseas warehouse, especially in the credit problems in cross-border business, information security issues, to both domestic and international legal coordination problem, classified treatment from their positions and rented warehouse model.

At the same time, in collaboration with the customs, taxation and quality supervision departments, we should rely on the modern integrated e-commerce platform to simplify the construction process and improve the efficiency of customs clearance.

3.2 promotion of virtual overseas warehouse construction.

So-called virtual warehouse overseas, that is, each will be integrating outside the store, and to hold a fair amount of the goods, and through the information sharing system, to real-time stock information, facilitate online and offline interaction and docking, flexible logistics distribution mode.

Using virtual overseas warehouse model, can give full play to the storage capacity of each store and use offline disperse stores to save the rent, the cost of a self-built overseas warehouse also can provide consumers with convenient follow-up service.

3.3 improve the local service system.

Cross-border e-commerce services to overseas consumers depend on the local operating system provided by overseas warehouses to expand their overseas market share.

For example, set up the overseas warehouse localization operation team, and set the overseas warehouse scale according to the local consumption demand;

Carry out localized language and cultural investigation, and set up local e-commerce service websites covering the target market;

Optimize the local third-party payment platform to meet the local payment;

To deliver goods on the goods distribution, reduce logistics links and improve service timeliness.

3.4 introduction of modern information management system.

The key to the construction and management of overseas warehouse is to build a perfect information management system from the development and utilization of big data technology.

For example, in order generation, tracking, input and summary management, automation and networking should be realized.

Efficient and coordinated management of overseas warehouse storage information, especially the introduction of data analysis and mining, accurately forecast market demand, and improve the efficiency of overseas warehouse stock and freight.

3.5 broaden the risk prevention cooperation model.

As a new type of warehouse management, overseas warehouse construction has more risk factors.

Before buying, from feasibility analysis on all kinds of risk factors, the cross-border electricity business enterprise to constitute a system of risk prevention, including financing risks, risks of trade and business cooperation, legal, regulatory risk and so on, to take positions to reduce market risk, promote overseas warehouse efficiency.



There are many obstacles to the strategy of cross-border e-commerce.

From our overseas warehouse, warehouse management, logistics practice actively learn from foreign advanced experience, from policy, law, technology, international business negotiation, etc., to take advantage of overseas warehouse, one by one to crack disadvantage problem, continually satisfy the consumers at home and abroad at any time, anywhere, go shopping experience.


[1] shan qinqin, lv hong. Research on overseas warehouse construction of cross-border e-commerce in China [J]. Foreign trade, 2017(08).

[2] liu xiaohong, zhao hong. Obstacles and countermeasures for overseas warehouse construction of China's export products [J]. Cooperative economy and technology, 2017(12).(source: Chinese business theory/xinglun editing: e-commerce research center)

Cross-border electricity industry according to China's export industry chain map shows that at present export cross-border electric business platform mainly consists of the following categories: B2B categories: alibaba international station, Toocle3.0 (business), global sources, China manufacturing network, MFG.com, trade, easy don nets, great work, dunhuang nets, etc.

B2C: global express, eBay, amazon, Wish, lanting set, DX, milan net, global easy purchase, Pepsi tai, aoji international, baiji, little stupid bird, etc.

Third party service platform: a da tong, easy to a single network, the communication, Paypal, Europe, the bank of China, China's ping an, China post, UPS, TNT, motion, DHL, FedEx, the quartet, export, chow, barley universal electric business, China farming larks, etc.


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