Key Factors That Led To Increase In Cross Border Ecommerce In China

By Author: Damon Za
Total Articles: 80
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There is a remarkable rise in cross border eCommerce in China. Restrictions on eCommerce imports have been relaxed in China, and customers are eager to access the best quality imported products. Top eCommerce platforms in China are helping to drive cross border selling to an extraordinary level. In 2018, this cross-border market valued at 5.8 trillion and increased by 21 percent in 2019. So, what factors led to such a substantial rise.

Relaxation in regulations

The latest Chinese regulation changes make cross-border eCommerce easier for both the consumers and retailers in China. There has been an increase in tax-free, cross-border products, and the categories of imported, duty-free goods have been improved. In addition to these, restrictions on distribution centers have been uplifted that allows retailers to warehouse products in appointed trade free zones and provide hassle-free delivery options to the customers.

In China, cross-border eCommerce remains a safe harbor when it comes to disciplinary tariffs imposed upon US products. This safe harbor significantly reduces the ambiguity for American retailers ...
... who want to sell their goods in China. It also allows other foreign retailers to test the Chinese marketplace with less risk before opening offline retail stores.

Convenience and rise in wealth

Due to numerous benefits, China’s cross border e-commerce has also increased as it has witnessed growth in the west. Online marketplaces make it much easier for customers to purchase their favorite stuff. With a plethora of retailers available to people, good value and high quality are becoming more accessible. As a significant chunk of the Chinese population resides in smaller cities or rural communities, cross border eCommerce in China helps bring the marketplace to remote locations.

There is robust economic growth in China, and consumers have experienced an increase in their personal income that has expanded their capacity to spend. There is a significant increase in cross border eCommerce in Chinese soil. There are opportunities to make money by getting access to retail goods around the globe and are supported by massive investment in digital infrastructure.

Old population

A significant driver for the increase in cross border eCommerce in the country is the aging citizens. Study shows senior people aged 65 and over account for more than 200 million consumers in China, which is around 11.5 percent of the population, and by 2050, the numbers will increase to 330 million. This demographic has a strong consumer presence, and health supplements top the list of senior’s cross border eCommerce purchases. A recent report shows that over 40 percent of senior’s online purchases were in this category.

Without any doubt, the availability of imported goods in China is increasing at an alarming rate and will continue in the near future. Studies estimate that top eCommerce firms in China could import 400 billion USD worth of goods between 2018 and 2023 thanks to the relaxation in regulations.

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