1. 2008-2015: The Era of Direct Mail Logistics Dominated by Postal Small Packages

Image Source: Xiaosheng Research Institute

In the early stages of China's cross-border e-commerce logistics development, the rise of the eBay e-commerce platform marked the era of postal small packages with one-dollar shipping worldwide. Subsequently, with the rapid development of AliExpress, the demand for direct shipping small packages from China to overseas buyers surged. Hong Kong Post and China Post, as the main forces in cross-border direct shipping logistics, faced short-term capacity shortages. Consequently, numerous foreign postal services began entering the Chinese market through agency models, including Singapore Post, Dutch Post, Swedish Post, Belgian Post, and many other foreign postal services.

As cross-border e-commerce sellers' demands for logistics timeliness and experience increased, international postal small packages within the Universal Postal Union (UPU) system, including ordinary mail and registered mail products, could no longer fully meet the needs. China Post began to gradually launch E-Parcel commercial express products based on bilateral agreements between countries, gaining a good market reputation. Subsequently, many cross-border e-commerce logistics companies introduced dedicated small package products combining commercial express and postal resources, leading to an increasingly refined product form for cross-border direct shipping logistics channels.

2. 2015-2020: The Era of Dual-Drive with Direct Mail Dedicated Lines and Overseas Warehouses

Image Source: Xiaosheng Research Institute

Starting in 2015, the demand for small package cross-border direct shipping logistics surged as more and more foreign cross-border e-commerce platforms, primarily focusing on direct shipping and inventory models, entered the Chinese market.

At the same time, Amazon's Global Selling program significantly increased its recruitment efforts in China, attracting a growing number of cross-border e-commerce sellers to the platform. This led to the emergence of many cross-border e-commerce logistics companies specializing in FBA (Fulfillment by Amazon) first-mile transportation, which involves sending goods from domestic sellers' warehouses to overseas FBA warehouses. By 2016, as cross-border e-commerce sellers sought optimal configurations in terms of timeliness, cost, and customer experience, sea freight services with transit times between air freight and regular sea freight began to gain popularity. Sea freight services, exemplified by Matson, became a preferred choice for many FBA logistics companies seeking optimal timeliness and cost efficiency.

With the continuous enrichment of cross-border e-commerce logistics, payment, and other ancillary services, the entire service system of cross-border e-commerce has been steadily improving. Sellers have gradually shifted towards high-value and large-sized product categories. In response, an increasing number of sellers adopted overseas warehouse shipping models for hot-selling product categories, significantly enhancing the shopping experience for international buyers and demonstrating a trend towards localized operations in cross-border e-commerce.

In 2017, as more Chinese cross-border e-commerce goods entered Europe and the U.S., the issue of cross-border e-commerce taxation drew widespread international attention. Developed countries in Europe and the U.S. began to impose clear requirements for the standardization of cross-border e-commerce tax regulations across platforms, making integrated cooperation in cross-border e-commerce logistics taxation urgent.

By 2018, e-commerce platforms like Wish and Joom accelerated the digitalization of logistics, leading to a reshuffle in the dedicated small package market. Logistics service providers recognized by e-commerce platforms grew in scale, while those excluded from platforms faced significant survival challenges. E-commerce platforms increasingly played a crucial role in the reshuffle of the cross-border e-commerce logistics industry, with a growing trend towards self-built and integrated logistics systems.

3. Post-2020: The Era of Global Cross-Border Networks and Supply Chain Coordination

Image Source: Xiaosheng Research Institute

Given that cross-border e-commerce services and deliveries are completed overseas, establishing a global cross-border logistics fulfillment network is crucial. For example, Alibaba's Cainiao Network advocates for the EWTP (Electronic World Trade Platform) global logistics backbone network, and Cainiao's acquisition of Fourstar Express is aimed at enhancing the global overseas warehouse network and direct shipping logistics system. Similarly, Zongteng Group's acquisition of YunTu Logistics has created a collaborative cross-border logistics service network integrating GuCang's overseas warehouses and YunTu's direct shipping services.

In future development, the integration of global service capabilities with localized operational abilities will be key for cross-border e-commerce logistics companies. The evolution from direct small packages to overseas warehouses, and then to integrated warehousing and distribution, ultimately forming comprehensive cross-border supply chain solutions, represents a process of progression across points, lines, planes, and systems. Expanding global service capabilities and improving supply chain stability will be critical challenges for cross-border e-commerce logistics companies going forward.

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Public Account: Cross-Border E-Commerce Logistics Bai Xiaosheng