What is the specific difference between cross-border e-commerce and foreign trade?

Now, whether it is cross-border e-commerce or foreign trade, there are differences. You need to distinguish them, but many people find it difficult to distinguish between cross-border e-commerce and foreign trade. What is the specific difference between cross-border e-commerce and foreign trade? The following is an introduction for everyone.

1. Different subject directions:

In the foreign trade market, companies expand overseas markets by promoting their products and services through information channels and attracting foreign merchants. Therefore, from the perspective of communication methods, foreign trade belongs to information flow.

On cross-border platforms, merchants directly publish product information through platforms or self-built websites in order to complete product transactions. From this perspective, cross-border e-commerce is about product flow.

2. Different import and export links:

In the foreign trade market, since bulk commodities are involved, companies do not obviously consider optimizing time and costs in the import and export links.

In cross-border e-commerce, both the time and cost of transportation will affect the final transaction and profit of the goods. Therefore, merchants must pay attention to these links, try to reduce costs and improve efficiency as much as possible.

3. Online transactions and offline transactions have different transaction methods:

In foreign trade, the transaction method between two parties is mostly offline, or the transaction is not conducted through a third-party payment platform.

In cross-border e-commerce, the transaction parties and transaction methods are generated by the platform, and payment also requires the intervention of a third-party payment platform.

4. Different taxes:

Because foreign trade often involves large-scale transactions, customs review and tax declaration are relatively complicated, involving not only value-added tax but also consumption tax.

As a transaction method in which merchants face individuals, cross-border e-commerce is simpler in terms of taxation. Sometimes you may only be involved in a travel tax.

5. Different business models:

The basic model of foreign trade is B2B, which is a product of the early stage of global trade development.

The mainstream trade model of cross-border e-commerce is B2C, which is the inevitable result of the development of global trade. Cross-border e-commerce has broken the operation model of traditional foreign trade e-commerce, but now the boundary between cross-border e-commerce and foreign trade is becoming more and more blurred.

After reading the above introduction, you should know the specific difference between cross-border e-commerce and foreign trade. In fact, cross-border e-commerce is a combination of e-commerce and foreign trade, but cross-border e-commerce directly develops consumers and is a terminal among terminals.

Recommended reading:

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What does a cross-border e-commerce independent website mean? What are the advantages?