5 Myths for Cross Border eCommerce

TMO Group TMO Group

Now it is a prosperous time of cross border eCommerce. As a saying goes “a rising tide lifts all boats”. To be honest, it doesn’t mean how much efforts boats paid. Apparently we are not strong enough to through every storm. It is no exaggeration to say that network and mobile technology have changed the way of retailing.

It seems that eCommerce are built for cross border. The more flat the world, the easier it is to develop cross border eCommerce. However, a butterfly flapping its wings in asia could create a hurricane in America. Followings are 5 myths we need to avoid in cross border eCommerce.

1. What is your enterprise orientation?

Retail is the sale of goods and services from individuals or businesses to the end-user. So here comes the question,”You are a manufacturer or a retailer?” Take manufacturer alone, your opportunity is to increase the exposure rate.  Retailing means you need to open online or offline shops. You must focus on your strength. Different trades are separated as by mountains.

2. Can we avoid the intermediate links?

Nothing of the sort is happening! Many business owners think that local supermarkets are milking their profits. Such as Wal-Mart, it makes much more money than manufacturers. Actually, the real opportunity is to let manufacturers have a direct conversation with customers. We should keep the tail from wagging the dog!

3. Is the cake getting bigger accompany with eCommerce?

Actually, the growth of America market only increase 2%-3% every year. Thus the cake is not bigger than before, just be divided into more pieces. Above all, almost all retailers now make use of omni channel retailing. They have not only brick and mortar shops, but also eCommerce stores. Their final goal is to build a global network of eCommerce.

4. Can we get a decent profit without brick and mortar stores?

This is certainly not the case. First we need to undertake the risk of the return and shipping fare. And then we also need to beat all competitors with a lower price. In fact, it’s far from obvious why price transparency would lead to lower prices.

5. Do we underrated the difficulty of entering the US market?

From my point of view, we need to familier with the consumers habit before entering the US market. Furthermore, we also need to study the eCommerce rules and the way of brands promotion such as why American eCommerce Giants don’t Develop their Own Brands?. eCommerce prosperity depends on the synergy between companies, on the cluster, not the individual entrepreneur.