Research On B2C Cross Border E-commerce Development In China

With the continuous progress of information and communication technology and the changes of consumption attitudes, e-commerce has been developing rapidly. Wholesalers, retailers and even consumers start to do shopping across the middlemen. The orders characterized by small quantities, high frequence and fast speed gradually replaced the traditional large transactions in containers and the small cross border e-commerce got rapid development.B2C(Business to Customer) cross border e-commerce is favored by major of SMEs because of stable capital flow and high profit margins.With success of LightInThebox in America, kinds of laws and regulations have been formulated to support the development of B2C cross border e-commerce in china. In2013, Chinese B2C cross border e-commerce ushered in the golden age of development.Although B2C cross border e-commerce in China is supported by the government, the proportion, just9.6%in2012, is still lower compared to the scale of overall import and export in our country.Research on B2C cross border e-commerce is not much, especially Chinese B2C cross border e-commerce, theoretical research lags far behind practice. This paper discusses the development features of B2C cross border e-commerce in China and analyzes successful cases of two modes. On one hand, this enriches academic research in the field, on the other hand, this provides referential significance for Chinese B2C cross border e-commerce practice.First, this paper introduces relevant theories and research situation at home and abroad. This paper divides B2C cross-border e-commerce into three application modes including department store, comprehensive mall and vertical store, and analyzes the influence of B2C cross border e-commerce on traditional international trade based on transaction cost theory. On one hand, B2C cross border e-commerce greatly shortens the trade process and reduces transaction cost. On the other hand, B2C cross border e-commerce reduces the degree of information asymmetry, reduces the uncertainty factors, increases the number of transaction and avoids the speculation, which results in reduce of the searching cost, negotiating cost, contracting cost and performing cost. However, performing cost and default cost are both increased in B2C cross border e-commerce.Then, this paper discusses features of Chinese B2C cross border e-commerce in China. First, this paper analyzes Chinese B2C cross border e-commerce from three aspects including macro environment, industry environment and micro environment. Based on this, the advantages and problems of B2C cross border e-commerce are studied.It figures out that Chinese B2C cross border e-commerce has the advantage of "made in China" and the support of government and other advantages, however, it also faces lack of brand and imperfect logistics system and other problems.Third, taking department store mode and comprehensive mall mode for example, this paper selected LightInTheBox and AliExpress to analyze the application of B2C cross border e-commerce. On one hand, this confirms the problems in the development of B2C cross border e-commerce in China.On the other hand, this analyzes the operation of two modes.Finally, this paper puts forward corresponding suggestion from the angles of relevant industries and firms to solve the problems in the development of B2C cross border e-commerce. For relevant industries, this paper suggests that cross border e-commerce platform should strengthen information regulations, the third-party logistics should strengthen cargo transportation and the third-party payment institutions should strengthen payment service. For enterprises, they should develop their own brands, improve the quality of products and services and focus on emerging markets.