How Long Can A Cross-Border Electricity Supplier Free Postal Tax Keep On "Burning Money" Or Pitional Period?

The implementation has become

The fuse of the new round of burning money war.

According to the content of the cross border tax new deal, including the prices of food, beverages, milk powder, diapers and other commodities tax prices have risen, many cross-border e-commerce platform to play the "package tax" brand to attract consumers' attention.

Insiders say that the essence of "package tax" is to make profits for consumers, so that enterprises can attract users to expand their market share.

After the tax reform, the "subsidy war" of cross-border electricity providers is inevitable, but it will only be short-term behavior.

No rise in taxes

"It was thought that the price of imported milk powder would increase a lot after the implementation of the new tax system, but there seems to be no change in comparison."

Ms. Li, who often buys goods through cross-border e-commerce platforms, said.

MS Lee's discovery is no accident.

Beijing Business Daily reporter survey found that after the implementation of the new cross-border electricity supplier tax system, most cross-border e-commerce platform tax on goods and postage were explained, but most of the settlement will be given concessions.

Despite the news that the price of commodities will rise after the implementation of the cross border tax reform, the price of goods across many cross-border e-commerce platforms has not risen significantly since April 8th, but the price of individual commodities has declined.

For example, the "flower Merries L54 diaper L54 3 package" sold by honey bud from the price of 412 yuan to 408 yuan in April 6th, and the "German import of AI Tai Mei milk powder 2+600g * 3 (more than 24 months)" sold by Beibei network, after which the price was 319 yuan, and the price was $309 yesterday.

According to the content of the cross border tax reform policy, "the import tax on value-added tax is abolished and the tax exemption is temporarily levied at 70% of the statutory tax payable."

For mother and baby products such as milk powder, diapers and less than 500 yuan, the former tax exemption will be changed to a value-added tax of 11.9%.

Insiders said that after the implementation of the new deal, the cost of some low commodity purchased by consumers would indeed increase. However, through the preferential policies such as package tax and package mail, enterprises can reduce the impact of the change of tax rate on users' cost.

Subsidize the market

"We have contracted your taxes and fees."

After the implementation of the new cross border tax system, cross-border electricity providers such as vip.com, pineapple and NetEase koala purchase have launched a "package tax" brand.

If vip.com launches only the international duty free mail, vip.com and NetEase will release the "package tax voucher" and "tariff subsidy voucher" respectively to reduce the tax fee for the next user.

The company's co founder, Xu Sheng, said that the state's taxation of cross-border commodities is a policy affirmation of cross-border electricity supplier industry, but for consumers, the most concern is whether commodity prices will rise.

Cross border electricity providers have springing up in China, but for more than a year, consumption habits have not yet been fully developed. Enterprises launched "package tax" activities in order to continue to cultivate the consumer market.

"Whether consumers want to pay taxes or not, consumers are most concerned about the final pricing of enterprises."

stay

Wan Qing Business Consulting Co., Ltd. CEO Lu Zhenwang seems that the change in the import tariff rate has become a new marketing gimmick of cross-border electricity supplier.

Cross border electricity providers give profits to consumers through free mail and tax packages. The ultimate goal is to attract more users.

Before and after the implementation of the cross border tax new deal, the marketing war has not stopped.

Earlier, a number of cross-border e-commerce platforms had launched slogans such as "clearing up goods and clearing goods" and "stockpiling goods before tax reform" to promote sales.

In addition, 3-4 months as winter and spring before and after the season, belongs to the mother and baby, beauty makeup and other daily necessities sales season, this is also the key platform for most platforms to promote the war.

The state is difficult to sustain.

Cross border business enterprises compete for "package tax", which set off a new round of price war in the industry.

Xu Sheng believes that after the tax reform, enterprises will inevitably form a price war in the process of cultivating the market through the "package tax".

Lu Zhenwang said that after the tax reform, the categories of tax rates increased, and the purchase cost of consumers increased.

The subsidy of enterprises to make profits is a kind of disguised "burning money", which is very difficult to sustain.

Under the current market environment, cross-border electricity suppliers are no longer allowed to burn money unscrupulously.

According to a cross border electricity supplier practitioner, in the "diaper wars" before, many players suffered a lot, although the traffic burst through the burning subsidy, but they could not get rid of the fact that the high users were losing.

On the other hand, since the second half of last year entered capital cold winter, similar diapers war scene has not appeared for a long time.

In this regard, Xu Sheng believes that the "package tax" is different from the previous concept of "burning money", and enterprises are mainly through the supply chain advantage, reducing the cost of commodity procurement, allowing consumers.

By implementing the "package tax", the profit tax rate will be taken as the cost of acquiring the business, and the number of new users can be determined to make strategic changes.

Vice president, Feng Jia Lu, also said that enterprises can reduce the cost of goods by setting up overseas buyers, global direct mining, overseas brand direct cooperation and intensive procurement, while building overseas warehouses, bonded warehouses and their own logistics systems, so as to save the cost of logistics distribution, and thus be able to do tax free mail delivery.