Problems of the overseas direct purchase (purchase agency, delivery agency) system

purchase agency, delivery agency system

The dictatorship was caused by centralization and the acceleration of the rich and the poor.

Participants (sellers and buyers) also serve as contributors as nodes that make up the platform, but in existing businesses, participants never share the benefits of the platform. For a platform, participants just have a role in generating profits, not a partner to share profits with. The existing business industry desperately needs to redefine its position as both a profit maker and a profit sharer for participants.

Opaque information and insufficient verification of the distribution process.

Due to the problem of the authenticity of distributed products and information sharing, companies leading the growth of the global distribution market are also attempting to apply blockchain to the distribution process. When blockchain is applied to distribution, individual transaction entities maintain only their own transaction ledger, and the entire distributed blockchain transaction ledger is updated in real-time whenever a transaction occurs. As a result, transaction information can be tracked immediately, and if a product with a safety problem is found in the process, the situation can be immediately identified by backtracking all foods included in the batch.

Increase in time and cost due to the complexity of the product distribution process

With increasingly complex campaigns, participants are changing into a structure in which multiple stakeholders are involved. Although different for each platform, each platform generates revenue from product registration costs, sales costs (a certain percentage of the transaction amount, different for each category), and advertisements for products, and brokers generate commissions. In most cases, platform participants (sellers) pay 5% to 30% of the total product price in commissions paid to the platform and brokers, excluding labor costs. In addition, payment fees, product shipping, and packaging costs are also added. From the seller's point of view, after deducting incidental expenses such as commissions and advertising expenses, the actual profit in hand is small.

The overseas remittance, currency exchange cost, and time

Overseas remittances are essential to the global economy. However, remittances sent by senders do not reach 100% of the recipients. Overseas remittances have been monopolized by banks for a long time, so there are many inefficiencies. In the case of overseas remittance through a bank, the remittance is carried out through the SWIFT network. At this time, the remittance is carried out through various intermediary banks, so the commission is very high. SWIFT (Society for Worldwide Interbank Financial Telecommunications) refers to the International Association of Interbank Financial Telecommunications. It is a system in which remittance is made in several stages of transmission through several banks using a coded message system. The SWIFT system, which consists of multi-level transfers and messages, is rather complex. One transfer, which should be simple between individuals, has to go through several detours. Therefore, the SWIFT method causes a lot of delays. It may take several days for the transfer to be completed. In addition to the fees paid to the bank, there are additional charges such as wire transfer fees and currency exchange fees.