Analysis Of Profitability Of Vertical Cross-Border E-commerce Enterprises In China

With the development of Internet technology,the optimization of the logistics environment and the diversification of consumption habits,cross-border e-commerce,as a new form of business,has been developed rapidly in China in recent years.The transaction data released at the first World Customs cross-border electricity supplier conference held in Beijing in February 2018 showed that China's cross-border e-commerce accounts for more than 40%of the world's total.China has become the leader in cross-border e-commerce worldwide.The development of China's cross-border e-commerce has entered the golden period.However,the earlier comprehensive cross-border e-commerce giants have basically monopolized the cross-border e-commerce market,and the new integrated cross-border e-commerce enterprises are facing the development dilemma.With the advantage of product specialization,the new vertical cross-border e-commerce enterprises have avoided competing with the integrated cross-border e-commerce giants for the market.In recent years,these enterprises have shown excellent profitability.Vertical cross-border e-commerce enterprises start late,and It's still in the growth period,so its profitability has a great increase space in the future.This kind of electricity supplier enterprises need to continuously improve their profitability in order to maintain a good development trend in the competition of the electricity supplier market.How is the comprehensive profitability of China's vertical cross-border electricity suppliers,and what are the main influencing factors of their profitability at this stage,are the two most important problems should be solved at the present stage,so that Vertical cross-border electricity suppliers can make better use of the market environment to further enhance profitability and gain long-term stable development.Firstly,through the literature research at home and abroad,this paper summarizes the research value and research method of vertical cross-border electricity supplier's profitability in China.Secondly,through the weighted net asset returns,we quantitatively analyze the current situation of vertical cross-border e-commerce profitability in China,and find that the profitability of vertical cross-border e-commerce enterprises is good,and the potential for future profitability is great.On the basis of the characteristics of vertical cross-border e-commerce enterprises,it analyzes the influencing factors of their profitability on the basis of six related theories of cost and cost control,enterprise scale,capital structure,asset operation efficiency,equity structure and enterprise growth,and puts forward the hypothesis.Thirdly,in the empirical part,this paper uses factor analysis to make a comprehensive measurement of the profitability of 2012-2016 of the 48 cross-border e-commerce enterprises in China,and analysis the case of vip.com.It is found that the profitability of vertical cross-border e-commerce enterprises is better than the new integrated cross-border e-commerce enterprises,but there is still a gap compared to the earlier integrated e-commerce giant,and the profitability of vertical cross-border e-commerce enterprises has a great opportunity to improve in the future.Fourthly,on the basis of the previous hypothesis,this paper makes a panel data regression analysis on the related financial indicators and the score of comprehensive profitability of 20 vertical cross-border e-commerce enterprises for 2007-2016.It is found that the scale of enterprises and the cost of sales have the strongest influence on the profitability of vertical cross-border e-commerce enterprises,and the degree of ownership concentration,the efficiency of assets operation and the ability of enterprise growth also have different influence on their profitability.Finally,in view of the conclusion of the empirical analysis of the influential factors,this paper gives some suggestions on how to improve the profitability of vertical cross-border e-commerce enterprises in the future.It provides a reference for the future transformation and development of the cross-border e-commerce industry in China.