What is cross border e-commerce and why?

What is cross border e-commerce and why?

In an emerging market, and with a big domestic market like China, consumers often have difficulties finding imported products at affordable prices in their local stores. The Chinese demand for imported products increases every year, due to a growing middle class with exposure to the internet and foreign products, which in many cases are considered to be of higher quality and status.


Therefore, Chinese consumers often use foreign websites, or specialized domestic platforms, who focus on international e-commerce and foreign products, and thereby buying directly from foreign retailers via the internet. This concept is called cross-border e-commerce.





Why cross border e-commerce works

The primary factor for Chinese consumers to engage in cross-border e-commerce is to ensure they products of high quality. However there are many other factors that play in as well. For example access to niche products and new products, which are not yet available from domestic retailers.

There are several examples of scandals in China where counterfeit domestic products have been sold as real ones. For example baby milk formula and comestic products.

Because of this it is a common conception among Chinese consumers that buying foreign products guaratees higher quality and protection against counterfeit products. Studies show that more than 60% of Chinese consumers say that their main reason for buying products via cross-border e-commerce is to guaratee the quality of products.

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