The regional nature of traditional trade makes it impossible for many distant regions or countries to conduct bilateral trade, or the cost of trade is high, and transnational e-commerce solves this problem. Through the promotion of e-commerce, merchants and consumers in different countries or regions can minimize their transaction costs through the Internet and thus reach a deal.

The traditional trade method has led to the fact that Made in China is now labeled with a cheap trademark, and Chinese companies are increasingly lacking bargaining power. This has directly led to the meager profits of traditional trade. There are two main reasons for the lack of bargaining power. One is that Chinese multinational companies lack their own brands, and a large number of high-quality products are recognized as ordinary Made in China by foreign countries. The second is that Made in China lacks its own marketing channels. Through transnational e-commerce, the problem of marketing channels is directly solved. At the same time, some Chinese products with low profits can establish their own brands abroad through transnational e-commerce platforms. Through brand advantages, Chinese companies can obtain certain bargaining power. At the same time, Chinese companies can use transnational e-commerce, and some OEM companies can change their original development model and put their own brand logos on exported goods, making the goods their own brands. At the same time, relying on the brand power of high-quality groups, we can gradually expand our brand reputation.

Compared with the traditional foreign trade development model, how to solve the trust problem of cross-border e-commerce? In the traditional foreign trade development model, the trust problem seems to be irrelevant. Because in the traditional foreign trade development model, buyers generally decide to purchase after a field investigation. Generally, buyers will make up their minds only after a detailed investigation. Although this approach can ensure the quality of the product, its high cost far exceeds that of cross-border e-commerce. In cross-border e-commerce, buyers cannot conduct field inspections. At this time, we need to establish a trust mechanism. This trust mechanism can be led by the government or by a credit rating agency. By giving full play to the filtering function of the credit platform, a good online trading environment can be established, the main body of fraudulent behavior can be shielded to the maximum extent, and some illegal funds and illegal flows of funds can be shielded from the payment system.

Compared with the traditional foreign trade development model, the cost of cross-border e-commerce is relatively low, so we need to solve the supply chain problem at this time. Because from the cost point of view, a reasonable supply chain can enable enterprises to save costs significantly. In the traditional foreign trade development model, export goods are generally purchased domestically and then shipped abroad for sale. Transnational e-commerce can reasonably arrange warehouses for goods abroad based on sales data and deliver directly, which can not reduce the purchase willingness of buyers and greatly reduce the time cost of enterprises. Reasonable settlement methods and payment methods are also indispensable for cross-border e-commerce. At present, domestic cross-border e-commerce companies that are doing well include AliExpress, Tmall, Yelinmao Cross-border E-commerce, etc.