Title:
A STUDY ON BONDED WAREHOUSES SHIPPING MODE USED IN CHINA’S CROSS-BORDER E-COMMERCE

Authors:
Michal Španěl, China

Abstract:

This study analyzes the comparative advantages of China's Cross-border E-commerce (CBEC) using bonded warehouses to store and ship imported cosmetics products to uncover key factors influencing market share growth of CBEC cosmetics, to assess advantages of CBEC and to create industry study directly applicable by individuals and organization engaged in the cosmetic trade. In this work was used a method of comparative analysis where the existing research and investigations were combined to study and compare with CBEC import mode with import modes such as overseas online shopping, direct mail or selling through purchasing agents from five different perspectives of costs, regulatory barriers, authenticity protection, delivery speed and product variety. Conducting comparative analysis among such a variety of import modes and factors, including authenticity protection is rare in the CBEC research field, this paper fills the research gap. Based on the results, the comparative advantages of CBEC are in the reduction of needed administration and labor thanks to digitalization, in lower shipping costs due to quantity discounts, reduced rates of taxes and tariffs and in delayed payment of these taxes. In terms of regulatory barriers is the main advantage in the waiver of lengthy product registration and first-time import license. The highly supervised supply chain of CBEC leads to increased authenticity protection, placing bonded warehouses directly in China is translated into high delivery speed. The finding implies that importing by CBEC is distinctly beneficial for the cosmetics category. To clarify the advantages of CBEC for importing cosmetics, future research will need to be done on factors of market size, demographic or company cosmetics companies experience.