China's cross-border e-commerce emerges as new 'battlefield' for orders

(ECNS) -- In the first half of 2024, China's cross-border e-commerce imports and exports reached 1.22 trillion yuan($170 billion), a 10.5 percent year-on-year growth, outpacing the overall growthrate of China's foreign trade by 4.4 percentage points. Over five years from 2018 to 2023, the sector has more than doubled, growing 1.2 times.

Boost from Paris 2024 Olympics

During the Paris 2024 Olympic Games, Chinese foreign trade merchants emerged as big winners. Leveraging the Games, Yiwu International Trade Market produced 80 percent of the Olympic mascot "Friger" and 1 million officially designated Olympic silicone bracelets printed with "PARIS 2024."

The white hairpin worn by Huang Yuting, a gold medalist in the 10m air rifle mixed final, became a hit, with one merchant selling over 400,000 same-style hairpins in one day.

Although the Paris Olympics ended, the momentum of China's cross-border e-commerce driven by major sporting events continues to grow. Riding this wave, the overseas businesses of Alibaba international station and Yiwu International Trade Market have reached new heights.

Since January till now, items like tennis outfits, outdoor sportswear, golf bags, and various ball products have been very popular on Alibaba international station. Online export sales related to the Olympic economy on Alibaba international station have surpassed 7 billion yuan.

According to statistics, the total import and export value of Yiwu exceeded 300 billion yuan for the first time in the first half of this year. Of this, the exports of sports goods and relevant equipment reached 5.02 billion yuan, marking a 42.3 percent increase year on year.

Surging registrants

According to data from “TianYanCha” and “Qichacha”, there are currently 21,000 cross-border e-commerce enterprises in China, with 4,715 new registrations this year alone, reaching 81 percent of last year's total.

A man surnamed Zhu, who sells fragrances via live streaming on Douyin, opened a small store on Amazon to offer affordable perfumes. “When I first started, I sold perfumes and household items for a month, and business was pretty good,” Zhu told Workers’ Daily.

He noted that many vendors who previously operated stalls in Yiwu and Guangzhou are now recognizing the potential of cross-border e-commerce and planning to open online stores.

On online platforms like Weibo and Xiaohongshu, many merchants born in the 1990s and 2000s share their experiences. One user, alias "Little Sweet Potato", said "Navigating through the startup period, I have grown from a newbie to a medium-sized shop owner."

Whether they are novice or seasoned entrepreneurs, cross-border e-commerce has become a crucial arena for them to secure orders and expand markets.

Challenges and opportunities

With China's e-commerce going global, merchants are facing new challenges like marketing strategies and legal issues.

A man surnamed Li, a cross-border e-commerce professional in Shenzhen City, Guangdong Province, told Workers’ Daily that while the industry used to be about “making profits quietly,” it now demands intense competition in marketing and web traffic, which can be challenging for older entrepreneurs.

To address these challenges, some e-commerce platforms offer full or partial management services, however, the cost incurred reduced merchants' profits. Additionally, there are some scams in the name of "training clients on cross-border e-commerce platform."