6 advantages of cross-border e-commerce in 2021

As we all know, Amazon and other e-commerce companies have achieved great success, with new online stores opening every day, and most offline companies also have their own online stores.

Cross-border e-commerce retail sales have seen staggering growth over the past decade, accounting for 11% to 14% of U.S. retail sales, making it the world's second largest e-commerce market (first in China). This growth is largely attributed to the inherent advantages of e-commerce.

These advantages are:

(1) A larger market

(2) Low-cost operation

(3) Flexible response to changing market conditions

(4) Analyze consumers

(5) Low-cost digital marketing

(6) Personalized customer service

Here is a detailed understanding of the advantages of each cross-border e-commerce:

(1) A larger market

Many online stores can not only involve customers in their region but also foreign customers. Online stores can gain a larger market, and it is also very convenient. You don’t need to go to offline stores to buy products. You can buy your own happy products by just moving your fingers on your computer or mobile phone. This is also an opportunity for small businesses, as you can expand your customer base outside of your region, not only increase brand awareness, but also gain more customers to open up a larger market.

(2) Low-cost operation

Unlike physical stores, online stores do not have management fees such as construction, leasing and maintenance. The main startup cost of online retail business is to establish and host websites, and the initial cost may be as high as tens of thousands of yuan. If you want to further reduce operating costs, most of the labor and inventory operations can be outsourced.

If you deal with digital products like books, software, and music, you can run them at extremely low fees, and one of the few costs comes from the intellectual property rights to produce them.

(3) Flexible response to changing market conditions

E-commerce is flexible enough to make corresponding adjustments to changing consumption trends. Due to the outsourcing of most business operations, online business can make necessary changes to adapt to new market conditions. Unlike brick-and-mortar businesses, e-commerce stores can more easily adapt their operations to meet changing customer needs.

Sometimes, this change may involve changing your business model. This happened to Odeo, a podcast platform developed when Apple's iTunes was launched in 2006. Today Odeo has become Twitter and one of the world's top social media sites.

(4) Analyze consumers

By selling goods online, you only need data analysis tools to easily understand consumers’ needs, hobbies, etc. These tools can track and analyze the browsing and shopping habits of consumers in your store.

You can know which marketing and pricing strategies are the best. With these references, you can adjust your previously undesirable strategies and focus on the most effective strategies to grow your business.

(5) Cheap digital marketing

You don't have to lose everything to sell your online retail products. With the help of countless digital marketing available to promote, there are also a variety of ways to attract potential customers to your online store.

There are many marketing methods like social media marketing, email marketing, and content marketing, which are very cheap marketing methods so you can find digital marketing strategies that suit you.

Beardbrand is a great example, which does not use traditional marketing techniques such as billboards and TV advertising. Over the years, it has expanded its customer base through content marketing.

Compared with offline businesses, online businesses have another marketing advantage: repositioning marketing.

Retargeting marketing tips and promotions involving individual shoppers’ online habits. It offers special promotions to individual customers, especially those who have visited but have not purchased it yet.

(6) Personalized customer service

Offline companies provide a large amount of their products and provide almost no personalized services. But online businesses can offer this privilege to their customers.

Research shows that customers like personalized experiences because it shows that businesses respect them enough. It turns out that it can also improve customer conversions.