This article explores how Value Added Tax (VAT) serves as a facilitator of fair competition in international trade, distinguishing it from tariffs. VAT achieves tax neutrality through a multi-stage payment mechanism, providing equal opportunities for all businesses, ensuring that goods are taxed in the consuming country rather than the producing country, thereby promoting growth in international trade.
This article analyzes the HS code classification for bedding sets, focusing on the classification principles for complete bedding items. Through examples, it examines the applicable tax code for a cotton three-piece set (including a bed sheet, duvet cover, and pillowcases) and recommends classification under 6302219090. Ensuring correct HS code classification aids in compliance and reduces tax risks.
Cross-border e-commerce sellers need to comprehensively consider factors such as customs clearance responsibility, tax burden, and risk transfer when choosing between DDP (Delivered Duty Paid) and DDU (Delivered Duty Unpaid) terms. DDP is suitable for scenarios where buyers lack customs clearance capabilities or need to enhance customer experience, while DDU is suitable for situations where buyers have customs clearance capabilities or tax rates fluctuate significantly. When choosing, attention should be paid to the policies of the destination country, tax calculation, and the qualifications of the freight forwarder to reduce risks and ensure smooth delivery.
Temu, owned by Pinduoduo, has rapidly penetrated the US market with its high price-performance ratio products. Its C2M model and social media marketing strategies, drawing inspiration from SHEIN, are key to its success. Despite facing challenges, Temu has the potential to attract more US consumers amid high inflation. The platform's focus on affordability resonates with budget-conscious shoppers, giving it a competitive edge in the current economic climate. Its aggressive marketing and diverse product offerings further contribute to its growing popularity.
Amazon's upcoming "Low-Price Marketplace" is generating significant attention in the cross-border e-commerce sector. Focusing on products under $20 and employing a fully managed model, it aims to compete with platforms like Temu and SHEIN. Some sellers have already stocked goods in Dongguan warehouses, with internal testing expected in November, though a full launch may be delayed until next year. Simultaneously, stricter US T86 customs clearance policies require sellers to prioritize compliance and adapt to evolving market dynamics.
SHEIN launched a third-party marketplace platform, entering the US e-commerce market with the aim of enriching product variety, shortening delivery times, and achieving strategic transformation. This move presents opportunities for Chinese sellers, but also brings challenges such as price competition and platform rules. While SHEIN's future development is uncertain, its entry will inject new vitality into the US e-commerce market. This expansion signifies SHEIN's ambition to become a comprehensive online retailer, competing with established giants like Amazon and Walmart.
Temu, leveraging the C2M model and social media marketing, has rapidly risen in the US market, catering to consumers' demand for cost-effective products amidst high inflation. Drawing on the successful experience of SHEIN, Temu is poised to create a new wave in the US e-commerce market. However, its future development still faces challenges. The C2M model allows Temu to directly connect with manufacturers, reducing costs and offering competitive pricing. Its aggressive marketing strategy has also contributed to its rapid growth.
Pinduoduo's Temu has entered the US market, challenging Amazon with its low prices. Following a model similar to SHEIN, Temu leverages its supply chain advantages to carve out a new space in the American e-commerce landscape. Its success hinges on its differentiation strategies and the user experience it provides. The platform aims to attract consumers with competitive pricing and a wide range of products, but faces challenges in building brand loyalty and ensuring consistent quality in a highly competitive market.
A survey reveals that 80% of Greek consumers prefer shopping on e-commerce platforms outside the EU, primarily driven by lower prices. Platforms like Temu and Shein are popular, with users exhibiting higher daily internet usage. Nearly half of Greek consumers' online spending goes to non-EU platforms, posing a significant challenge to EU e-commerce businesses. The low-price strategy employed by these international platforms attracts Greek consumers seeking affordable options, impacting the competitiveness of domestic and EU-based online retailers.
Global trade changes are impacting cross-border e-commerce. Platforms like Amazon, TikTok Shop, and SHEIN are introducing new regulations, requiring businesses to innovate and adapt to seize opportunities. Companies need to understand the evolving landscape of tariff policies and platform rules to remain competitive. This includes exploring new markets, optimizing supply chains, and leveraging data analytics to make informed decisions. Success in this dynamic environment hinges on agility and a proactive approach to navigating the complexities of international trade.
