Basic Concepts

Understanding the fundamental concepts of cross-border e-commerce is the first step to success in this industry. In this issue, we introduce four essential and frequently used terms to help you quickly grasp the core ideas of cross-border e-commerce.

1. Cross-border E-commerce

???? Definition

Cross-border e-commerce refers to the buying and selling of goods between buyers and sellers located in different countries through online platforms, relying on international logistics for product delivery.

???? Key Features

✔ Global transactions: Sellers can reach international customers beyond their local market.
✔ Multiple sales channels: Products can be sold via independent websites (e.g., Shopify, WooCommerce) or third-party marketplaces (e.g., Amazon, eBay, AliExpress).
✔ Involves international payments and logistics: Typically uses global payment methods (e.g., PayPal, credit cards) and international logistics providers (e.g., FedEx, DHL).

???? Applications

• B2C Cross-border E-commerce (Business to Consumer): Platforms like Amazon, AliExpress.

• B2B Cross-border E-commerce (Business to Business): Platforms like Alibaba, Global Sources.

• C2C Cross-border E-commerce (Consumer to Consumer): Sites like eBay, Etsy.

???? Related Terms

???? International Logistics
???? Overseas Warehousing
???? Customs & Compliance

2. Marketplace

???? Definition

A marketplace is a third-party platform that allows multiple sellers to list and sell their products, providing buyers with a one-stop shopping experience.

???? Key Features

✔ High traffic: Marketplaces attract large numbers of buyers, such as Amazon, eBay, and AliExpress.
✔ Easy to operate: Sellers only need to register an account, upload products, and start selling—no need to build a website.
✔ Commission-based: Most marketplaces earn revenue by charging sellers transaction fees, advertising costs, or subscription fees.

???? Popular Cross-border Marketplaces

• General platforms: Amazon, eBay, AliExpress

• Standalone stores & DTC brands: Shopify, WooCommerce

• Niche platforms: Etsy (handmade crafts), Wayfair (home goods), Newegg (electronics)

???? Related Terms

???? Seller Central
???? 1P vs 3P Sellers
???? Marketplace Policies & Guidelines

3. Fulfillment

???? Definition

Fulfillment refers to the entire process from order reception to inventory management, packaging, and finally delivering the product to the customer.

???? Key Features

✔ Multiple fulfillment methods: Businesses can manage their own fulfillment, use third-party logistics (3PL), or rely on platform logistics (e.g., Amazon FBA).
✔ Affects customer satisfaction: Fast fulfillment and efficient delivery enhance the customer experience and increase repeat purchases.
✔ Requires efficient management: Inventory control, order tracking, and delivery times all must be carefully managed.

???? Common Fulfillment Models

1️⃣ Self-fulfillment: Sellers manage their own stock and shipping via postal services or couriers like DHL.
2️⃣ Overseas Warehousing: Storing inventory in warehouses located in the target market for faster local delivery (e.g., Amazon FBA, third-party overseas warehouses).
3️⃣ Dropshipping: Selling products without holding inventory; the supplier ships directly to the customer.

???? Related Terms

???? Order Processing
???? Supply Chain Management (SCM)
???? Returns & Refunds

4. Logistics

???? Definition

Logistics refers to the process of transporting, storing, and delivering goods from the seller to the buyer. For cross-border e-commerce, this involves international shipping, customs clearance, and warehouse management.

???? Key Features

✔ Higher costs for international logistics: Compared to domestic logistics, it involves international freight, customs duties, and clearance processes, making it more expensive.
✔ Different shipping methods: Sellers can use courier express (FedEx, UPS), postal shipping (ePacket, China Post), or overseas warehousing to optimize delivery efficiency.
✔ Customer experience impact: Delivery speed, cost, and reliability directly affect customer satisfaction and repeat purchases.

???? Major Cross-border Logistics Options

???? Express Couriers: Services like DHL, FedEx, UPS – fast transit time but expensive, suitable for high-value goods.
???? Dedicated Line Logistics: E.g., 4PX, Yanwen Logistics – cheaper than express couriers, used for bulk shipments.
???? Postal Shipping: E.g., ePacket, China Post – affordable, but longer delivery times, suitable for low-cost products.
???? Overseas Warehousing: Storing inventory in the target country’s warehouses for faster shipping within the local market.

???? Related Terms

???? Customs Clearance
???? Import Duties & Taxes
???? Tracking & Last-mile Delivery

Summary ????

This issue introduced the fundamental cross-border e-commerce terms to help you understand the industry’s core framework:
✅ Cross-border E-commerce – Global online trading model
✅ Marketplace – Third-party platforms that connect global buyers and sellers
✅ Fulfillment – The process of managing orders and deliveries
✅ Logistics – Shipping and customs-related operations

???? Next Issue Preview: Issue 2 – Platforms & Operations (Amazon FBA, Dropshipping, Merchant Account, Buy Box) ????

???? Pro Tip for Beginners: If you are new to cross-border e-commerce, starting with established marketplaces (like Amazon or eBay) can help you learn the business. Once you become familiar with the processes, consider setting up your own storefront on Shopify or other independent platforms! ????????

???? Got any questions or additional insights? Feel free to discuss in the comments! ????????????