Analysis of Cross-border E-commerce Independent Website Business Model

B2B and B2W models

Backed by domestic manufacturing resources, targeting overseas small and medium-sized enterprises or retail customers, selling in bulk. This operating model sets minimum order quantities or minimum order amounts, allowing quick online inquiries and ordering, with logistics completing the delivery. These independent sites have tiered pricing, different wholesale standards based on different order quantities, and target mostly B2B customers with long-term purchasing needs.

Brand independent site model

With the rise of major selling brands like Anker Innovation, SHEIN, and Banggood, private label brands in cross-border e-commerce are on the rise.

The brand independent site model is the official brand website established by cross-border sellers, such as Apple's official website, Xiaomi Mall, Dyson, DJI, and similar well-known brand independent sites. In terms of the independent site model, there are no particularly high barriers to entry. In terms of brand image building, the key lies in the brand's content and creativity. For traffic channels, aside from Google, Facebook, and TikTok, leveraging influencer reviews is also one of the strategies used by brands.

Site group B2C distribution model

The station group distribution has achieved many domestic brands, with typical representatives including Cross-border Pass, such as Global Easy Buy, and Lanting Jieshi. The dividend generated during this period is obvious, one of its most clear characteristics is that any category can be tried, with hundreds of global sites and up to hundreds of thousands of SKUs. Around 2013, Deal extreme and Lanting Jieshi successively went public, pushing the station group model to its peak.

Vertical boutique station model

The most typical of this type is SHEIN. I believe that in the past one or two years, those who do cross-border e-commerce basically understand this independent station dark horse. In the global cross-border market of 2020 and the crisis of the epidemic, it not only achieved Ank, but also achieved the vertical boutique station SHEIN.

The vertical boutique station model is one of the most promising types of independent stations in current cross-border e-commerce. On one aspect, it achieves rapid integration in the product supply chain. On the other hand, through scaled-up new user acquisition and emphasis on deep user experience design, it promotes user growth.

Emerging mobile e-commerce model

This model matured after 2012. Typical representatives include Jollychic, Clubfactory, Fordeal. The typical characteristics of the model are: rich team experience in e-commerce + strong technical support + substantial capital boost. The targets are aimed at some Internet population dividends, rapidly growing mobile Internet emerging markets and regions. Besides Southeast Asia and the Middle East, theoretically there are also opportunities in India, South America, Eastern Europe, and other regions. However, technology and capital will become the entry barriers for the vast majority of small and medium-sized sellers.

COD single-page e-commerce model

Independent site COD model, which first appeared in the second half of 2016, was exceptionally hot in the Southeast Asian e-commerce market. This single-page e-commerce model tends to lean towards traffic thinking. Typical sellers include Bugubird, Jiahong, etc., who quickly build separate product pages similar to Taobao details pages, advertise on Facebook or Google, and then achieve transactions through cash on delivery, a type of independent site model.

Dropshipping model

In the past two years, cross-border sellers have discussed the drop shipping model of independent websites quite a lot. So, what is the ultimate core of the one-click dropshipping model? In short, the drop shipping model mainly focuses on traffic, does not hold inventory, and is a no-source model, where sellers do not need to consider logistics and supply chain issues.

Independent websites are disrupting traditional cross-border trade. In this global cross-border market, there are thousands of profitable models. As long as you understand the operational skills of independent websites, regardless of how the model changes, every seller has the potential to thrive through independent websites.