Up to 5 million! The two cities give money to cross-border e-commerce companies

At the end of last year, the fact that various provinces formed groups to go overseas to grab orders attracted a lot of attention. In order to support foreign trade companies to go abroad to expand their markets, local governments provided policy support in many aspects, such as providing a certain percentage of subsidies for booth fees and round-trip airfares for personnel.

Entering 2023 , the focus has been placed on cross-border e-commerce companies, and policy measures have been introduced to reward and subsidize related companies. After the beginning of the year, Chengdu and Hangzhou took the lead in supporting the development of cross-border e-commerce companies with a maximum reward of 5 million yuan .

As we all know, Shenzhen is the "capital of cross-border e-commerce". Most cross-border e-commerce companies are concentrated here. However, in recent years, due to cost considerations and policy attractions, some companies have returned to their hometowns or set up branches in Chengdu, Changsha, Yichang and other cities.

High rewards are in place in various places, all of which are real money support

Recently, both Chengdu and Hangzhou have provided "real money" support for the high-quality development of cross-border e-commerce.

On February 13 , the "Chengdu City Policies and Measures to Promote the High-quality Development of Cross-border E-commerce" was officially issued. In terms of supporting cross-border e-commerce enterprises to become bigger and stronger, the "Measures" proposed to give rewards of 500,000 yuan, 2 million yuan, and 5 million yuan respectively to cross-border e-commerce trading enterprises with annual cross-border e-commerce transaction volume exceeding 50 million yuan, 200 million yuan, and 500 million yuan, and a year-on-year growth of more than 20% .

Chengdu cross-border e-commerce service enterprises whose main businesses are third-party platforms, international logistics and overseas warehouses, cross-border e-commerce technical services, international marketing services, cross-border payments, intellectual property rights and financial and tax compliance, and which provide services to cross-border e-commerce enterprises in Sichuan and Chongqing, will be rewarded according to 3% of their income from serving cross-border e-commerce enterprises in Sichuan and Chongqing, with a maximum of 500,000 yuan for a single enterprise.

At the same time, the Measures support enterprises to develop cross-border e-commerce. For enterprises whose cross-border e-commerce transaction volume exceeds 1 million yuan for the first time , 1% of the cross-border e-commerce transaction volume will be rewarded , and the amount for a single enterprise shall not exceed 1 million yuan. The Measures also support the construction of public overseas warehouses, and provide a one-time reward of 100,000 yuan to enterprises that are identified as key enterprises for cultivating public overseas warehouses in Sichuan Province. Enterprises that build or operate overseas warehouses with a total area of ​​50,000 square meters and 100,000 square meters will be given a one-time reward of 1 million yuan and 2 million yuan respectively .

In addition, the Measures also support cross-border e-commerce exports through bonded warehouses , support cross-border e-commerce companies in financial financing , etc.

In fact, before Chengdu, Hangzhou had already released relevant incentive policies. On February 3 , the "Implementation Opinions of the General Office of the Hangzhou Municipal People's Government on Accelerating the High-quality Development of Cross-border E-commerce" was officially released. The " Opinions" encourage cross-border e-commerce companies to develop towards high quality in five aspects.

Among them, in terms of encouraging the cultivation of cross-border e-commerce entities, enterprises that conduct cross-border e-commerce export business through customs supervision models such as cross-border trade e-commerce ( 9610 ), cross-border e-commerce B2B direct export ( 9710 ), and cross-border e-commerce export overseas warehouses ( 9810 ) will be given financial support of no more than 2 million yuan each year .

In addition, a one-time financial support of no more than 2 million yuan will be given to enterprises that conduct cross-border e-commerce export business through independent application stations . A one-time financial support of no more than 1 million yuan will be given to service providers that serve more than 50 cross-border e-commerce enterprises and whose service revenue is no less than 10 million yuan and whose service revenue growth rate in the year of fund application is no less than 15% year-on- year .

The Opinions also encourage cross-border e-commerce brand cultivation. Cross-border e-commerce enterprises that register their own trademarks in the destination country of cross-border exports will be given a one-time financial support of no more than 70% of the overseas trademark registration fee in the year of registration, and the support amount for a single enterprise will not exceed 200,000 yuan. At the same time, enterprises that promote their own brands through social media, search engines, cross-border live broadcasts, etc. will be given financial support of no more than 25% of the promotion costs , and the annual support amount for a single enterprise will not exceed 500,000 yuan.

In addition, the Opinions also encourage the construction of cross-border e-commerce warehousing and logistics. For enterprises listed in the provincial public overseas warehouse construction pilot list, in addition to provincial support funds, a one-time financial support of no more than 200,000 yuan will be given. For a single import and export warehouse with an operating area of ​​more than 3,000 square meters, a one-time financial support of no more than 300,000 yuan will be given, and the support amount for a single operating enterprise shall not exceed 600,000 yuan.

In addition, the "Opinions" also encourage the cultivation of cross-border e-commerce talents and the construction of a cross-border e-commerce service ecosystem.

In recent years, it is precisely such incentive policies that have attracted many cross-border e-commerce sellers in Shenzhen to either withdraw directly or open branches in these cities.

The branch moved to a city in the mainland, and the sellers in Shenzhen found it very attractive.

A seller in Shenzhen told Ennet that three years ago he moved part of his team to a city in Hubei, thousands of kilometers away from Shenzhen, and set up a branch there. This decision not only helped him accumulate strength to counter the market downturn last year, but also greatly reduced his labor costs over the years.

When the industry is developing rapidly, labor costs are often overlooked, but when market competition becomes fierce, labor costs will become a large expense, especially in the future, this problem will become more prominent. Last year, when most sellers were laying off employees to survive the winter, he felt this problem more deeply.

In general, the Shenzhen seller now thinks it is a good idea to open a branch in the mainland, because there his company can not only enjoy the government's rent subsidies, foreign trade subsidies, overseas warehouse subsidies and other policies that support the development of cross-border e-commerce enterprises.

Moreover, compliance of cross-border e-commerce is an inevitable trend in the future. However, in Shenzhen, if he wants to comply with the regulations, it is difficult to find a matching policy for his company's scale. However, this is easy to solve in the mainland, such as 9710 customs declaration and unequal restoration of foreign exchange data .

In the cross-border e-commerce circle in Shenzhen, there are many sellers who have opened branches in the mainland like this seller. The most mentioned one is the Changsha branch of Shenzhen big seller Youkeshu. In fact, not only Youkeshu, but also another big seller in Shenzhen, Zebao Technology, has opened a branch in Changsha.

As early as the end of 2019, Youkeshu had set up a branch in Changsha, and it has been more than three years since then. In the first half of last year, Changsha Youkeshu had an operating income of 139 million yuan and a net profit of 1.06 million yuan.

Although a net profit of more than one million is not much for a cross-border e-commerce giant, it is at least profitable. You should know that in the first half of last year, Youkeshu had a net loss of more than 80 million. Moreover, Changsha Youkeshu's revenue growth is very rapid. In the first half of 2021, its revenue was only more than 7.71 million yuan, with a net profit of 640,000 yuan, and a revenue growth rate of 18 times.

In the cross-border circle, "moving out of Shenzhen" is not a new topic. Not only sellers want to return to small cities to take a breather, but also some cross-border workers are eager to leave Shenzhen and return to their hometowns for development.

One seller lamented: "I have worked hard in Shenzhen for several years, and overtime has become commonplace, but the money in my pocket has not increased as I wished." A cross-border worker also said helplessly: "The work pressure in Shenzhen is too great. There is only work here, no life."

In the past, whenever the company was mentioned to move back to hometown or to a mainland city, sellers always had concerns about talent. If cross-border workers also have a strong desire to return to their hometown for development, it will be a win-win outcome for both sellers who open branches in the mainland or directly withdraw to their hometown, and for cross-border workers.

Previously, Yien.com reported that Changsha, Chengdu, Wuhan, Yiwu, Xi'an, Hefei, Zhengzhou and other places are popular choices for sellers to relocate. The reason why these places attract sellers is not only because of their supply chain advantages and strong cross-border e-commerce atmosphere, but also because of the local government's strong support for cross-border e-commerce.

Cross-border e-commerce