This year began with uncertain tides for China’s cross-border e-commerce sector, particularly as American policies shift in unpredictable directionsThe mid-afternoon of February 4th marked the onset of significant logistical disruptions when the United States Postal Service (USPS) took a historic stepThis announcement indicated that packages originating from mainland China and Hong Kong would no longer be accepted, leaving the community for cross-border e-commerce in a state of apprehension.
However, just as the news broke, the USPS revealed that this suspension would be lifted the next day, which offered a brief respite for e-commerce sellers and logistics partnersThe USPS specified that while packages would be suspended, regular mail items would still be processedYet still looming in the background were the effects of new trade tariffs instituted by President Trump, which added a harsh 10% tax on goods coming from China, effectively removing the 'de minimis' exemption for items below $800.
In the wake of these developments, an executive from a popular cross-border e-commerce platform noted the urgency this created within their operations, prompting an emergency meeting on their very first day back at workThe abrupt changes in policy deliver significant implications, but the full extent of these effects remained dauntingly unclear, prompting a cautious approach as they plot their next moves.
One of the immediate concerns for sellers is the double-edged sword of rising costs and diminished efficiencyThe unforeseen tariff could be viewed as a figurative “New Year’s surprise” — one veteran platform seller recalled that they had to expedite information gathering among their affiliates and customers posthasteDespite the USPS’s initial suspension, they relaxed their grip shortly thereafter, leading to some relief, as most sellers leverage alternative shipping services that do not exclusively depend on USPSCompetitors like Yanwen, YunExpress, and SF Express maintain their own networks for package distribution, operating effectively in this tumultuous environment.
The imposition of the tariff, however, is where the real concern lies
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The abolishment of the ‘de minimis’ exemption fundamentally undermines Chinese cross-border e-commerce competitivenessThis change threatens to inflate the cost of Chinese goods while simultaneously reducing shipping speeds, which could curtail the volume of small parcel shipments significantly — a mainstay in this sector.
Recent efforts by Chinese cross-border logistics company, ChonLian, have focused on reinforcing their direct-to-consumer distribution networks and overseas warehouses in response to these changesChief Business Officer Kang Yong provided insights into how these new policies could increase average consumer costs by $10 to $20 per transaction, depending on the customs processes that various platforms utilize.
“The low-value goods model is particularly vital for lower-income consumers, and this policy could have a far-reaching impact on their purchasing power,” Kang sharedHe indicated that while it remains to be seen how deeply the regulations will penetrate into the fabric of direct shipping operations overall, closer examination must address how much cost burden overseas buyers can realistically shoulder.
Data from the U.SCustoms and Border Protection notes a staggering increase in the number of goods entering the country under ‘minimum threshold’ duty exemptions, skyrocketing from approximately 139 million packages in 2015 to over 1 billion by 2023 — a 600% surgeProjections for the 2024 fiscal year anticipate even greater volumes, exceeding 1.36 billion items.
Platforms such as Temu, Shein, and AliExpress have cultivated a dedicated following among American consumers looking for affordable clothing, home goods, and electronicsThis demand has fueled rapid growth within these services, with Temu notably clinching the title of the most downloaded free app in the U.S. for the second consecutive year.
In response to the changing landscape, companies involved in overseas warehousing have recognized opportunities amidst the adversity
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