Research On The Profitability Of China Vertical Cross-border Ecommerce

Favor policies, technical progress and the trend of global cross-border ecommerce lead China’s ecommerce into the fast-growing period. China Ecommerce Research Center has predicted that the domestic online shopping overseas market will top 1 trillion. The fast rise of vertical cross-border ecommerce has attracted increasing attention lately. On the one side, more vertical cross-border ecommerce has emerged; on the other hand, the pre-existing one has grown quickly. However, compared with the vertical cross-border ecommerce, the domestic vertical ecommerce companies are undergoing pains as the former major players such as Mecox Lane and Dangdang decline. Do the vertical cross-border ecommerce companies have anything in common with those domestic ones in terms of profitability? What’s the profitability level of vertical cross-border ecommerce companies currently? Will they face the same problems the domestic ones have suffered? The article studies these issues and tries to find out the answers.The approaches of literature search and analysis, case study and data analysis are used in this article to discover the problems and seek solutions. First, the author has summarized the relevant literature and analyzed the situation and profitability of domestic and cross-border vertical ecommerce companies, and found that both of them have difficulty in profitability although the cross-border ones haven’t confront this problem due to the industry dividend. Then the factor analysis of public ecommerce has been conducted to prove the existence of this problem. Finally, the case study of vertical cross-border ecommerce and the excellent domestic vertical ecommerce has helped to propose suggestions for the development of cross-border ecommerce.The profitability of vertical cross-border ecommerce companies is the core issues of the article. There haven’t been meaningful research findings within the domestic and foreign academic circles. In addition, in the context of domestic vertical ecommerce crisis and rapid growth of cross-border ecommerce, it is practically significant to discuss the profitability, potential challenges and solutions of vertical cross-border ecommerce.