Two Mainstream Models of Cross-border E-commerce

Low-threshold platform model vs. independent site model

Currently, there are two mainstream models in the cross-border e-commerce industry. One is to operate on platforms such as Amazon, eBay, Walmart, AliExpress, Lazada, and Shopee, while the other is to choose an independent site.

The low-threshold platform model comes with its own traffic and a relatively low entrepreneurial threshold, while also having a piece of the pie. However, this model faces fierce homogenized competition within the platform, increasingly intense price wars, and needs to fully comply with platform rules, otherwise it may face the risk of being banned.

The independent site model allows for independent development and completely independent operation, avoiding the constraints of platform rules. However, it requires self-traffic acquisition, high traffic costs, low conversion rates, and high operational difficulty.

The disappearance of the Internet dividend, traffic becomes a challenge

On the Internet, traffic is the source of all business. However, with the saturation of Internet users, the disappearance of the Internet dividend, factors such as rising shipping costs, the traffic issue has become more prominent.

Major cross-border e-commerce platforms are highly homogenized, with intense price wars and the risk of being banned. Independent stations need to bear high customer acquisition costs and attract traffic through advertising.

Private traffic has become key

Private traffic refers to user resources that enterprises/brands can repeatedly reach, and through private traffic, customer acquisition costs can be reduced and traffic issues can be solved.

By observing domestic overseas enterprises such as SHEIN and Anker, the different traffic strategies of the two can be found. SHEIN started with independent stations, long-term precipitation of brand private traffic pools, and achieved customer information locking and repurchase. Anker's majority of revenue comes from the Amazon platform, lacking the ability to directly reach customers, so they are also increasing investment in the brand's official website and trying private domain operations.

Conclusion

In the field of cross-border e-commerce, choosing the right business model is crucial. For merchants who want to build a brand and have independent user resources, private traffic is the key to future development. Through the operation of private traffic, customer acquisition costs can be reduced, user loyalty can be increased, and continuous operation and development can be achieved.