Cross-border export logistics industry is reforming in slack season

23/07/2018

The era of logistics compliance has come. In the past two months, cross-border export logistics market has been in slack season. Large enterprises have recently experienced significant cost pressures.

 

The sharp decline in market orders has the greatest impact on logistics companies. For example, the US FBA price has reached about USD 65 /CBM.

Tax problems in Europe have been severe since the end of last year. The e-commerce platforms were forced by the pressures of overseas government tax department, forcing sellers to submit tax numbers and pay taxes legitimately.

After the UK and Germany have scrutinized the issue of e-commerce taxation, other European countries are bound to focus on the issue, so the tax dividend of cross-border e-commerce is reducing.

US Customs has also gradually strengthened the inspection of e-commerce products exported from China to the United States. The low declaration of Chinese sellers has become the main focus of customs inspections.

 

Time to compete. Regardless of whether the e-commerce platform has greatly increased the operational compliance and rectification, or the general trend of overseas tax compliance, the core of the problem is still “Normalization”.

 

In 2018, the cross-border market will revolve around normalization, meaning people who profit from evading taxes will be gone.

The competition between enterprises will shift rough price and scale to refined operation and management. The deep transformation of this competitive relationship reflects the importance of product brand and management.

When every e-commerce platform develops to a certain extent, they have to go through the normalization process. Any industry that develops well, must also clarify the rules to contribute to long-term development.

A series of potential problems in the cross-border e-commerce industry in the past few years will intensively break out in 2018, which is a reform process for e-commerce sellers and service providers.

The logistics enterprises, which accounts for about 30% of the cross-border e-commerce transaction cost, is the largest group among the service providers. The industry dividends of the past five years have made many cross-border logistics enterprises develop into a larger scale, but their management and personnel training have not kept up. For some enterprises with a tight capital, slack season has undoubtedly accelerated the reform process of cross-border e-commerce.

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