Main Risks for Foreign Trade Enterprises Engaging in E-commerce Business

What Are the Risks for Export Trading Companies Entering E-commerce?

With the rapid development of internet technology and acceleration of globalization, an increasing number of export trading companies are venturing into the e-commerce sector. This trend not only brings new growth opportunities for businesses but also involves a series of potential risks. From market environment to logistics management, from legal compliance to consumer trust, every link may become a key factor affecting business development.

Firstly, the fierce competition among cross-border e-commerce platforms is one of the primary challenges currently facing export trading companies. For instance, international renowned platforms like Amazon and eBay, with their massive user bases and technical advantages, have captured most of the market share. For small and medium-sized enterprises, it is not easy to establish brand awareness on these platforms. According to relevant reports, in the first half of 2025 alone, more than 50,000 Chinese companies opened stores on Amazon, but less than 30% of them could maintain profitability. This indicates that how to stand out among numerous competitors is a problem that every export trading company must consider.

Secondly, logistics costs and efficiency are also important factors restricting enterprise development. Due to cross-border trade involving multiple countries and regions, various unforeseen situations may occur during the goods transportation process, such as customs inspection and delayed delivery. High freight costs also put considerable pressure on enterprises. According to statistics from a logistics consulting company, in recent years, international courier fees have risen by about 15% on average. This is undoubtedly a heavy blow for small export trading companies with low profit margins. Choosing suitable logistics partners and optimizing supply chain management processes are crucial.

Thirdly, intellectual property protection issues cannot be ignored. With more and more enterprises looking towards overseas markets, trademark infringement and patent disputes are also increasing. Statistics show that in the past year, the number of products removed due to suspected intellectual property infringement increased by nearly 40%. This reminds all business owners engaged in e-commerce activities to strengthen the protection of their own intellectual property rights while respecting others' legitimate rights and avoiding unnecessary economic losses due to negligence.

In addition, financial risks brought by exchange rate fluctuations should not be underestimated. Since cross-border transactions usually use foreign currency settlement methods, when the foreign exchange market experiences violent fluctuations, the profit margin of enterprises may be severely squeezed. For example, during the period when the US dollar-to-RMB exchange rate fell sharply at the end of last year, many enterprises dependent on export businesses faced varying degrees of cash flow tightness. Therefore, professional advice suggests that purchasing forward contracts can lock in future earnings to reduce uncertainties caused by exchange rate changes.

Finally, changes in consumer behavior patterns also pose new requirements for export e-commerce. With the growing influence of social media, word-of-mouth marketing has gradually become a key means to drive sales growth. However, to win consumer favor, companies need to provide high-quality products and services as support. Otherwise, even if short-term good performance is achieved, in the long run, too many negative reviews may lead to the loss of customer base. Strengthening after-sales service system construction, promptly responding to customer feedback, ensuring every buyer enjoys a satisfactory shopping experience, will be the core strategy for gaining competitive advantage in the future market.

In conclusion, although entering the e-commerce industry opens up a new path to success for export trading companies, it also comes with many unknown risks. Only by correctly recognizing and properly addressing these issues can sustainable development goals truly be achieved. In future development, we look forward to seeing more innovative and socially responsible enterprises shining in this field!