Are You Aware of these Cross Border E-commerce Terminologies

Author Chinavasion Marketing 22.7.2020. | 17:43

Cross border e-commerce is a trend that has gradually gained immense traction as consumers buy goods from outside their borders. Cross border e-commerce includes certain terms, the knowledge of which allows to better understand the definition of cross-border e-commerce.


If you want a forum to boost your business revenue and overall income abroad, cross-border e-commerce is a perfect way to enter the foreign market. Cross-border e-commerce can help you achieve success in other consumer markets with ease and high net income.

What is Cross Border Ecommerce?


Cross border e-commerce refers to electronic exchange between a company (retailer or brand) and a customer (B2C), between two companies, often products or wholesalers (B2B) or between two private individuals (C2C).Cross border ecommerce has gained tremendous traction in the last two years as consumers buy goods from outside their borders.


Cross border e-commerce is not fresh, but the pace at which products cross borders is increasing rapidly. To brands and online retailers, these figures demonstrate that there is a chance to promote their products to new audiences and raise sales and revenue. The most effective solution to cross-border sales is to add additional marketplaces to the existing distribution channels, such as Amazon and eBay.


What are the terms used in cross border e-commerce?


  • 3PL stands for third-party logistics and is a supplier of outsourced logistics services. Logistic services cover everything that includes management as to how resources are transported to locations where they are needed. 

  • APAC stands for Asia Pacific (APAC, Asia-Pac, AsPac, APJ, JAPA or JAPAC) and is part of the nation, in or around the Western Pacific Ocean. The area varies in size depending on the context, but usually includes most of East Asia, South Asia, South East Asia, and Oceania. (C2C), e.g. via online sites such as Amazon or eBay.


  • Cross-Border Commerce: online trading between a company (retailer or brand) and a customer (B2C), between two companies, often products or wholesalers (B2B), or between two private individuals (C2C), e.g. through marketplace platforms such as Amazon or eBay.

  •  Digital wallets: a digital wallet refers to an electronic system that enables a person to make electronic transactions. This can involve buying items online from a computer or using a smartphone to purchase something from a shop. An individual's bank account can also be connected to a digital wallet.


  • E-commerce: commercial transactions carried out electronically on the Internet.


  • Final Mile Delivery: The last mile is a term used to describe the transportation of products from the filling center to their destination. In other words, the last mile is the last leg of your product's journey before it arrives at your customer's door.


  • Localisation: adaptation of a product or service to meet the needs of a language, culture or "look-and-feel" population.


  • M-commerce or mobile commerce: purchase and sale of products and services via wireless handheld devices such as cell phones and personal digital assistants (PDAs). Known as the next generation eCommerce, mCommerce allows consumers to access the Internet without having to find a spot to plug in.


  • MENA: The term MENA is an acronym in English which refers to the Middle East and North Africa regions. MENA refers to a wide area, stretching from Morocco to Iran, covering all the countries of the Middle East and the Maghreb.

  • O2O (Online-to-Offline): a website or smartphone advertisement that allows someone to make a purchase in a physical establishment. Groupon is a prime example of providing discounts to locations such as restaurants and theatre tickets.

  • Social commerce: social exchange is a type of electronic commerce that includes social media, online media that facilitates social interaction, and user inputs to help buy and sell goods and services online. More briefly, social exchange is the use of the social network(s) in the sense of eCommerce transactions.

  • Tariffs: duty on manufactured goods.

  • Total landed cost: landed cost is the overall price of the commodity after it has arrived at the purchaser's door. Landed costs include the original price of the commodity, all shipping charges (both domestic and ocean), customs duty, taxation, insurance, currency exchange, capping, storage and payment charges.


Now that you are aware of what cross border e-commerce is and what are the basic terminologies used, we’ll take you through some of its advantages.


What are the advantages of Cross Border Ecommerce?



  • International Expansion – Cross-border e-commerce benefits vendors, retailers and brands alike, as they have the potential to extend their market to the demographics of a booming economy. Domestic e-Commerce retailers can expand their business and market penetration. They have the potential to market goods worldwide around the globe. 

  • Increased Revenue – With cross-border e-commerce, the seller has the chance to reach the foreign market. If they sell on the international market, the brand will gain further exposure, which will inevitably result in higher demand. The sellers are then granted the ability to increase their sales in the foreign market.

  • Brand Awareness – Cross-border e-commerce benefits sellers by increasing their brand awareness on the international market. If you offer your audience unique products that meet their needs and requirements, you increase the awareness and recognition of your brand that helps to create a global brand. Cross-border e-Commerce also opens up the possibility of customizing the product to suit specific consumer needs.

  • Selling Low Demand Ecommerce Products – At times, a product that is not popular for domestic e-commerce may have strong demand in other markets. Cross-border e-commerce is a forum for the best goods to be sold globally. As a result, the seller is allowed to sell a product on the international market that has a low value or is recognizable.

  • Increased Access to End Customers – By the final sales price, you would be able to draw more buyers on the foreign market that has historically been dominated by distributors in the past. By this way, you would be able to generate higher profits and get a greater share of the profit margin.

  • Builds a good relationship with the consumer – If your customer trusts the product you sell, he / she will automatically build trust in your brand to help build a good customer relationship. Genuine and high quality goods sold at a reasonable and fair price can also make it easier for consumers to shop with your brand.

  • Increased Business Sustainability – Cross-border e-Commerce is a growing and emerging platform today, with increasing recognition worldwide. Therefore the sellers don’t have to worry as their brand will sustain in the international market with more awareness and popularity among the customers.


Cross-border e-commerce is here to stay and needs to be used as a development strategy for e-commerce. It requires investment (payment processing, personnel and logistics) and should be carried out in a phased manner for maximum effect.


 The principles of cross border e-commerce have been intelligently incorporated in Chinavasion which is a thriving platform for online shopping. It has a wide range of products that cater to individuals all over the world. 

Author Chinavasion Marketing 22.7.2020. | 17:43
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