3 Barriers should be Jumped for Cross Border eCommerce

TMO Group TMO Group

Since cross border eCommerce became a new model, many electronic enterprises would like to share this piece of cake. As well as other big eCommerce giants in china such as JD, Alibaba and Haier also compete for market share. Followings are 3 barriers that should be jumped in cross border eCommerce.

Farewell to the high growth

The increasing speed of export is slower than inbound in electrical appliances industry from 2010 to 2014. Other electronic products are not optimistic as well. For all kinds of technology products, only mobile export keeps a rapid growth. Others are increased less than 10%, which is not performing up to the expectation.

The era of high speed increasing has passed. Along with the labor cost is increasing in China, how to find an eCommerce solution to overcome the low speed growth will be quite important.

High growth

Cross border eCommerce platform

Cross border eCommerce has become a new way for enterprises to increase their export. Walmart raises barriers to entry but eBay and Amazon not. Some other eCommerce giants like JD, Alibaba or Haier also set up their own cross border eCommerce platform.

Diao Yunfeng, who is Haier’s vice president said,”China is a small household electrical appliances factory in the world. But it lacks of an efficient and safe platform, which can connect sellers and buyers”.

Cross Border eCommerce

Policy risk

Although it seems to be a perfect prospect, we must take the risk of the following three policies.

  • Foreign policy: Russia and Brazil have monitored parcels from China.
  • Boycott of foreign retailing: Some countries would not like to impact their inbound retails.
  • Customs policy: Some goods need to apply to the customs. It may causes some rebates which can make troubles.

For example, Russia and Brazil would like to purchase from China. If there is a cross border eCommerce platform, they can take advantage of that and avoid the intermediate links. It’s a win-win solution.

Policy risk

In conclusion, cross border eCommerce has just begun. Many barriers need to be jumped. TMO Group provide cross border eCommerce solutions and our services include eCommerce website development. More details please send us an email!

Subscribe to our newsletter

News of the eCommerce world, best practices to use in your eCommerce platform, insights and analytics of Chinese and South East Asian eCommerce markets - all that and much more in our monthly newsletter.