Is it good to open a store on a cross-border e-commerce platform? What are the advantages?

Many businesses have set their sights on foreign countries and want to engage in cross-border e-commerce. So is it good to open a store on a cross-border e-commerce platform? What are the advantages of opening a store by yourself? The following content will introduce it to you. Let's learn about it in detail!

Is it good to open a store on a cross-border e-commerce platform ?

The advantages of opening a store on a cross-border e-commerce platform. Let’s take Amazon as an example:

1. Low cost

Tmall sellers, not to mention Taobao merchants, are very competitive. However, it is not easy to become a Tmall seller. Often you need to pay hundreds of thousands of entry fees, and you need a large sales and customer service team, so the actual net profit is close to the break-even point. But many off-season and even off-season items on Taobao perform well on Amazon. Why? Because Amazon users don't have so many choices when shopping, so they are likely to increase their purchasing power.

2. Low competitiveness

With the development of online platforms such as Taobao and JD.com, competition has become very intense. In order to gain a certain amount of attention, many merchants have adopted strategies such as selling below cost, hiring people to place fake orders, and raising prices at low prices in the early stages. On such platforms, merchants' products must either have price advantages or be very distinctive, otherwise it is difficult to stand out.

However, the number of registered merchants on Amazon is about one-tenth of that on Taobao, and the number of users is not small. Many merchants choose platforms with relatively less competitive pressure to avoid vicious competition and damage their own interests.

3. The platform has a lot of traffic

Take the United States as an example, Amazon's total traffic is 2200M, eBay's is 999M, and AliExpress's is 593M. In other words, Amazon's traffic is equivalent to two eBays and four AliExpresses.

4. Platform sales have the highest profit margin

Customers on the Amazon platform are middle- and high-end consumers, so they don't care too much about prices and can achieve a profit standard of 30% or even 100%. This is also an effect that can only be achieved by combining the characteristics of the Amazon platform, allowing Amazon sellers to have more profits.

When we open a store on a cross-border e-commerce platform, we must choose a platform that suits us. Otherwise, if we don’t choose the right platform, it will be difficult in the subsequent store operation process. In addition, cross-border e-commerce has advantages and disadvantages, and everyone needs to understand them.

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