Domestic Cross-border E-commerce Independent Site Development Evolution and Model Selection

Analysis of the Advantages and Disadvantages of Independent Websites and Third-party Platforms

In recent years, with the rise of various overseas cross-border e-commerce platforms in the Chinese market, the independent website e-commerce model has gradually gained attention. Compared to third-party platforms, independent websites have many advantages and disadvantages.

The advantages of third-party platforms include easy accessibility and existing large amounts of high-intent shopping traffic. However, in the current decline stage of platform traffic dividend, sellers on third-party platforms also face significant challenges.

The main challenges lie in fierce homogenized competition, making it difficult for products to stand out. Consumers find it hard to remember brand or store names after purchasing products, thus forming repeat purchase behaviors is difficult. In addition, marketing methods are limited by platform rules and have limited room for independent creativity.

The main advantages of independent websites

In comparison, independent websites have more advantages. First, independent websites have more autonomy, being able to set their own rules and marketing strategies, leveraging personalized advantages. Second, independent websites can accumulate user data, build brand loyalty, achieve user stickiness and repeat sales. In addition, independent websites can directly engage with consumers, build brand awareness and trust, enhance user experience.

Shortcomings of Independent Websites

However, independent websites also have shortcomings. The setup and operation costs of independent websites are relatively high, requiring high technical and traffic requirements. At the same time, independent websites lack ready-made traffic within the platform, needing to attract and maintain users themselves, requiring more effort and resources.

Guide to Choosing an E-commerce Model for Independent Websites

For platform sellers who wish to transform into independent websites or manufacturing factories and product development teams entering cross-border e-commerce retail, how should they choose the independent website model that suits them? Here are several main e-commerce models for independent websites:

1. Self-built independent website: Completely independently build an independent website, attract and maintain users themselves, and build brand loyalty.

2. Independent Website + Third-party Platforms: Use the independent website as the brand's official site, supplemented by third-party platform channels to increase brand exposure and sales.

3. Independent Website + Social E-commerce: Combine social media platforms to attract users through social marketing and improve conversion rates.

4. Independent Website + Content E-commerce: Provide attractive content to attract user visits and increase user engagement.

In conclusion, for companies and teams looking to develop independent cross-border e-commerce websites, choosing the right model is crucial. By flexibly applying different models based on weighing their respective advantages and disadvantages, it will help enhance brand influence and sales performance.

Advantages of Independent Websites

The advantage of independent websites lies in being able to build up their own user base, achieve repeat marketing and cross-selling in the future. Through communication with users, direct feedback on products can be obtained, continuously optimizing the products. As users accumulate, the website's value will also gradually increase.

Furthermore, as an independent website, you can have full control over your brand, adopt flexible ways to design marketing activities and promotions, without being constrained by third-party policy or rule changes.

Disadvantages of Independent Websites

Independent stations have a certain threshold for entry, requiring basic website building and operation capabilities. Even with the popularity of third-party SAAS website building tools, skills in basic website user experience, shopping process setup, and product detail page are still required.

Furthermore, the biggest issue with independent stations is the lack of free organic traffic. It is necessary to establish your own traffic channels and carry out user operations to maximize user retention, conversion, and value discovery.

Analysis of Independent Station Model

Independent stations have various models, one of which is the B2B or B2W (wholesale) model. This model relies on domestic manufacturer resources, targeting overseas small and medium-sized business clients or retail clients, achieving bulk product sales. These websites will set a minimum order quantity or order amount, complete the order through online payment, and deliver the products through cross-border logistics.

Another model is the independent site 'distribution mode B2C', which mainly appeared around 2004 to 2010. During this period, both the cost advantage of Chinese manufacturing and the cost of internet traffic were relatively low, so the enterprises engaged in this model were able to develop smoothly. However, as time passed, the development of this model gradually lagged behind and no longer suited the current environment.

In summary, the choice between an independent site and a third-party platform depends on individual circumstances, but it is recommended to choose a suitable model based on the current development trajectory.

Vertical boutique B2C model

This model emerged around 2010, mainly originating from some sellers represented by wedding dresses and formal wear. Faced with fierce competition and copyright issues, they gradually began to transform and specialize in the industry. Representative companies include Shein, Soufeel, Tidebuy, Jollychic, Sammydress, Patpat, etc. This model deeply integrates in the product supply chain, transitioning gradually to original design and innovation. In addition, marketing aspects are continuously optimized, focusing on user data and advertising efficiency, achieving user growth through advertising for new users and user re-targeting design.

Mobile E-commerce Model

The mobile e-commerce model mainly matured after 2012, with typical representatives such as Jollychic, Clubfactory, Fordeal, etc. These enterprises have experienced teams, strong technical support, abundant capital support, and target the huge population dividend of emerging markets and regions in the Internet. Besides Southeast Asia and the Middle East, similar opportunities exist in other regions, but technology and capital will become entry barriers.

Micro Innovation Self-built Station Model

Cash on Delivery (COD) model, first appeared in the second half of 2016. Fujian sellers built product pages similar to Taobao details pages and promoted them through Facebook, targeting customers in Hong Kong, Taiwan, Southeast Asia and other regions. This model greatly improves the conversion rate of user order placements, selling products including leather goods, tea sets, etc. It was later studied by domestic mobile Internet traffic giants, but as competition intensifies and traffic costs rise, challenges also increase. Excellent sellers who value product quality, logistics, and after-sales experience can stand out and continue to develop steadily in the face of market challenges.

In general, different e-commerce models have different performances and development situations in different market environments and stages. Adapting to market changes and continuously improving user experience are key to the long-term development of enterprises.

Dropshipping Model

The dropshipping model, known as Dropshipping overseas, focuses on traffic, does not hold inventory, and products are shipped directly from the factory or warehouse by the supplier after the customer places an order. Typically, it uses Shopify for website building, Oberlo for product selection, and Facebook for promotion. This model originated from the foreign Affiliate community, mainly founded by internet veterans skilled in marketing promotion and traffic operation. They understand the habits of overseas consumers, are familiar with internet promotion channels and tools, thus deriving a rich selection and marketing strategies. Phonebibi, dudegadgets, and others are well-known representatives of this model.

Brand-independent Website Model

Brand independent station is not a new model, but with the intensification of homogenized competition in cross-border e-commerce, more and more outstanding brand sellers emerge, making this model more important. Brand independent station is the official sales website built by brand merchants, focusing mainly on product design and development, brand marketing promotion, and user communication and operation capabilities. Brand independent station is suitable for entrepreneurial teams with product research and development capabilities or for merchants transforming from factories, such as excellent representatives like Anker, Mobvoi, and Crazybaby.

Overseas micro-business model

The overseas micro-business model grafts the mature micro-business model in China to the field of cross-border e-commerce, and is particularly popular in culturally and geographically close regions such as Southeast Asia. By accumulating on platforms like WeChat Overseas Edition, WhatsApp, Line, Facebook Group, etc., online transactions are realized through systematic scripts and one-on-one communication. This is a relatively new model that is still being explored, with expectations for more successful enterprises to emerge.