Geopolitical Factors Affect Cross-border E-commerce Growth
China's cross-border e-commerce export growth is slowing due to rising aviation fuel costs from regional conflicts and weakened consumption in Western markets, while the EU plans to impose low-value package fees, increasing operational pressures on sellers.
What are the key facts?
- 1Rising aviation fuel costs
- 2Weakening Western consumption demand
- 3EU low-value package fee from July 1
What happened?
Due to geopolitical conflicts, aviation fuel costs have been rising, coupled with weakened consumer demand in Western markets, leading to sluggish growth in China's cross-border e-commerce exports. Furthermore, the EU is set to impose a €3 fee on low-value packages starting July 1, which will further increase operational costs for sellers and intensify competition in the cross-border e-commerce sector.
What does this mean for cross-border sellers?
Sellers should focus on rising logistics costs and changes in EU tax policies, evaluating product strategies. Transitioning to higher value-added products will be an effective way to address current challenges.