With the surge in demand for overseas e-commerce packages driven by the expansion of China's "Four Little Dragons" platforms abroad, replicating the domestic e-commerce express model to overseas markets faces challenges such as customer base diversification, localization, and brand adaptation. At the same time, new models such as the separation of warehousing and delivery by e-commerce platforms' overseas warehouses are changing market competition.

Challenges Brought by Market Demand Growth

The expansion of China's "Four Little Dragons" platforms abroad has significantly stimulated the demand for last-mile delivery of overseas e-commerce packages. Taking the U.S. market as an example, the volume of packages shipped directly from China and from U.S. domestic warehouses exceeds 5 million orders daily. As the order density of overseas e-commerce packages continues to rise across regions, many have keenly realized the immense business opportunities in last-mile delivery of e-commerce packages overseas.

While replicating China's mature domestic e-commerce express model overseas seems to hold certain commercial potential, it faces multiple challenges. Currently, companies engaged in last-mile delivery overseas rely heavily on cross-border packages from several major Chinese e-commerce platforms, with more than half of their volume supported by these few platforms.

The pricing power of major platform clients over last-mile delivery companies is becoming increasingly dominant. How to transition from high reliance on cross-border platform orders to achieving a diversified and localized customer base is a pressing issue for many overseas last-mile delivery companies. These companies need to not only serve cross-border platform clients well but also explore local e-commerce clients to gradually reduce their dependence on major clients.

Furthermore, last-mile delivery companies also face the challenge of localizing their brands. Attracting more local merchants and overseas warehouse businesses to use their services is a significant hurdle to overcome. In mature e-commerce markets such as Europe and the U.S., embedding a new delivery company into the minds of local consumers is not something that can be achieved overnight—it requires long-term cultivation and accumulation. Therefore, localization of last-mile delivery is a process that demands persistent effort and time.

The Impact of New Models by E-Commerce Platforms

Currently, some e-commerce platforms are implementing a new model of separating warehousing and delivery in their overseas warehouses. This attempt grants platforms more control over big data related to last-mile package deliveries from the source of the commerce flow, making the overseas last-mile delivery market increasingly platform-driven. Platforms are pushing more merchants to use their own labels and accounts, and over time, platforms may become the largest agents for courier accounts, further changing the competitive landscape of the market.

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Public Account: Cross-border E-commerce Logistics Baixiaosheng