"Regular Army" And "Guerrilla Forces" Compete For Cross-Border Business

The rise in China is due to the high tariffs of Chinese customs and the proliferation of domestic fakes.

Consumers can buy cheap and reliable overseas goods through sea buying.

The purpose of customs clearance in all parts of China is to turn it into sunshine so as to avoid tax revenue loss.

The accession of Amazon undoubtedly made the momentum for customs, but if there is no price advantage, such cross-border trade will remain forever.

Since the launch of the first smartphone Amazon Fire Phone in June 2014 by the US e-commerce giant Amazon, Mao Wenyu, the mobile phone enthusiast, has always wanted to buy one.

On Amazon's China website, there is only one third party seller who sells for up to 9999 yuan.

Mao Wenyu searched the website with a shopping search website and found that a lot of Taobao sellers were willing to sell the mobile phone at a price of 4599 yuan.

On Amazon's US website, the price is about 3994 yuan.

Mao Wenyu feels

The registration account in the United States is too cumbersome. Finally, it was selected through Taobao sea.

However, she will soon be able to conveniently buy products on Amazon's US website in China, without having to understand English, and can be settled in Renminbi, and the distribution speed is very fast.

In August 20, 2014, Amazon (China) Investment Limited announced that it would launch cross-border e-commerce business in China (Shanghai) free trade pilot area (FTA).

According to the memorandum of cooperation between the two sides, there will be a direct mail China channel starting from September. The information on the channel is Chinese, and the style and price of the products will be the same as that of Amazon's US website.

Amazon will also set up its own warehouse in the free trade area, and stock up some hot commodities first to the FTA, so that Chinese consumers can deliver goods from the Shanghai warehouse without giving up the long wait for the sea.

Since December 2012, China Customs General Administration has opened up cities such as Shanghai, Chongqing, Hangzhou, Ningbo, Zhengzhou, Yantai, Pingtan, Harbin, Xi'an and Suifenhe as a pilot city for cross-border trade e-commerce.

The so-called cross-border e-commerce business refers to the import and export of cross-border trade in the form of e-commerce.

Among them, Shanghai was the first batch of cities to establish a cross-border platform. The pilot of cross-border e-commerce in Shanghai was officially launched in December 28, 2013.

On the official website of the free trade area,

It is called "regular army in Hai Tao Li".

Their opponents are those "guerrilla forces", and Li Yansheng, a senior vice president of cross border trade service delivery to Sifang information technology group, told reporters that China has about 3 million offshore Amoy customers, about 1 million of whom are shopping directly from foreign e-commerce websites.

The popularity of Hai Tao is widely welcomed by Chinese consumers because of its price advantage through tax avoidance.

How can Amazon compete with Shanghai's free trade area and the "cross border" platform set up by customs?

Hai Tao industrial chain should be born

Qiu Xue, a 27 year old car designer, began to become a sea naughty on Christmas day in 2013.

At that time, she wanted to buy an earphone, opened the price search website, found that this earphone sold 100 yuan abroad, even if added tax and postage, the total price will not exceed 200 yuan, while in China, it will sell 300 yuan.

Low price and reliable quality assurance, especially maternal and child products, are the reasons why consumers are keen on sea fishing.

In fact, as long as there are differences in taxes and prices, Hai Tao will always exist.

This is not a unique phenomenon in China. Only because China has a relatively high tax rate and frequent domestic food safety crises, Chinese consumers have become the largest group in the world.

Li Yansheng told reporters that the tax exemption of many countries is relatively high.

For example, the amount of tax exemption in the United States is about 200 dollars, equivalent to 1300 yuan.

But Chinese consumers buy mobile phones and other products from the United States to return home, the customs tax allowance is only 50 yuan.

If this product is imported into China in the general trade way, the tax is higher. Generally, it will pay 17% VAT plus tariff.

If it's an electronic product, the duty is about 10%-20%.

If imported cars, the combined tax rate is often as high as one hundred percent.

"So a large number of imported products come in the form of sea Amoy, which only requires postal tax, usually around 10%."

Li Yansheng said.

The postal tax is a preferential tax for the domestic consumers to buy foreign goods, which is only about 30% of the general trade import tax.

Since the development of Hai Tao, three paths have been formed: one is the overseas purchasing agent; the other is the specialized purchasing website; the three is the sea scouring platform of the domestic electricity supplier company, for example, Jingdong and Tmall have such sea channel.

Li Binxiang, a Chinese student studying in Japan, told the Southern Weekend reporter that the small purchase was done by overseas students. Some people went to the general store in Japan after placing the order, plus 10% of the purchase fee, plus freight to customers.

His tuition and living expenses now come entirely from the purchase business, and he has a net income of 20 thousand -3 yuan per month.

In April of 2013, he discovered that CASIO's self timer artifact was very popular in China, so he sent a message on his micro-blog to help local consumers purchase cheaper self timer in Japan.

I woke up on the second day and found dozens of requests for purchase.

Just do it and buy business.

Soon, Li Binxiang found that the competition for digital purchasing market was too intense, and began to make cosmetics and daily necessities.

At first, Li Binxiang bought goods directly from Japanese shops and sold them to domestic consumers. Later Li went directly to Japan cosmetics company to get the goods.

Some popular products can get 11% off, and the old model can get seventy percent off.

Li Binxiang does not stock up on his own stock. Every time someone orders, he takes dozens of items from the cosmetics company.

"At the very beginning, the manufacturers abandoned me for being too little and unwilling to supply. I grind them every day and visit them.

Japanese are not the same as Chinese, you show sincerity, they will often supply you.

Li Binxiang told reporters.

For the price of Li Binxiang, manufacturers usually have requirements, for example, they can not be sold at a lower price. Some manufacturers even demand that Li Binxiang can not sell products to China until the manufacturer formally sells the product in the Chinese market.

In addition to Li Binxiang's personal shopping, many consumers will choose overseas purchasing websites.

As a mother of twin children, Mao Wenyu often buys baby food from overseas and finds that the best rice noodles are purchased from abroad.

At first, she went to various purchasing websites to buy, but she often bought Shanzhai goods.

On one occasion, she found that many community software, many mothers began to go to a website called iHerb to go to Hai Tao.

IHerb is an American shopping website. It was founded in 1994. Its users are sold in more than 190 countries around the world, mainly selling health products and health products. The main customers of mother and baby channel are from China. This website can easily find simplified Chinese on the front page.

However, considering that the products purchased by buyers from other countries may be subject to taxation when they enter the customs, iHerb shall not exceed $80 for each order, not more than 7 Jin, and 12 US dollars for shipping.

Amazon: limited shock wave

The cross border e-commerce platform of Shanghai free trade area is a cross-border e-commerce website. It sells mainly high-end clothing, clothing, baby products, 3C electronic products, cosmetics, bags and so on.

"Cross border communication" is built by Dongfang Electronic Payment Co., Ltd.

The three main shareholders of Dongfang Electronic payment are subordinate enterprises of China Customs General Administration and Shanghai SASAC enterprises.

Cross border said on its official website that it has introduced more than 30 electricity suppliers and suppliers, and has sold tens of thousands of commodities. The best selling products are Korean and modern department stores.

According to the reporter's measurement, there are some products in cross border links that are indeed competitive.

For example, a Japanese importing flower king Merries diaper standard NB90 is installed in the cross border mother to child channel. The total tax price is 108 yuan, which is also sold for 139 yuan in Jingdong.

This diaper is a product provided by a businessman named Abu.

In the electricity business circle, Abu only preferred a website with almost no fame.

This is also a feature of cross border communication, where products of mainstream brands are rarely seen.

For example, there are only two brands of milk powder in Australia, and five products can be sold.

And the two brands are still unknown Australian brands.

There are also many products that are not selling well.

For example, the Southern Weekend reporter saw a baby formula on cross border crossing, although the price has advantages, but from the purchase situation of other e-commerce sites, it is a product with very few buyers.

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Amazon is the largest supplier of cross border connections.

Amazon, founded in July 1995, is one of the top two electricity suppliers in the United States and the world, and is listed on NASDAQ.

Amazon entered China in August 2004 for its acquisition of excellent network with us $70 million.

But Amazon is not the first international business player to enter the Chinese market.

As early as 2012, the American electricity supplier giant eBay and China Fashion electronics company Xiu Xiu net jointly launched the localized shopping brand "eBay Style show", and domestic users can purchase goods from overseas.

"We are the mode of virtual inventory. By docking with the brand side technology, we can get the product information online, and then the whole network price ratio, so that the price will be lower or lower than the European and American market. Finally, after the user orders, we will deliver the goods from the foreign warehouse."

Mou Qing, senior vice president of Xiu Xiu net, told the Southern Weekend reporter.

In fact, Jingdong and Tmall have similar cross-border commodity platforms, but none of them has attracted attention.

Jingdong's overseas channel is almost the same as Tmall's international purchase business. It is a business that allows foreign or domestic traders to do business, shops on their own platforms, and sells products imported from overseas.

Tmall has rejected a reporter's invitation to interview the Alibaba on the basis of the silent period of listing.

However, Jingdong said that the Jingdong's overseas purchase mode is going to be greatly adjusted, and it is not easy for us to accept the interview.

Amazon's public relations director, Huang Lei, also declined to be interviewed by reporters.

The reporter saw that there are four main categories of shopping channels in the Beijing East China Sea: clothing, shoes and hats, mother and baby products, make-up skin beauty and luxury goods.

Tmall international has a food health channel.

In the clothing shoes and hats purchased in the East China Sea, there is a shopping mall called Essar Shang pin, which is sold outside Turkey.