Geopolitical Factors Weigh on Cross-Border Ecommerce Growth
China’s cross-border ecommerce export growth is slowing as regional conflicts push up aviation fuel costs and Western consumer demand weakens; the EU also plans to impose a low-value parcel fee, increasing pressure on sellers.
What are the key facts?
- 1Rising aviation fuel costs
- 2Weaker Western consumer demand
- 3EU low-value parcel fee from July 1
What happened?
Geopolitical conflicts have driven aviation fuel costs higher, while weak consumer demand in Western markets has left China’s cross-border ecommerce exports facing sluggish growth. In addition, the EU plans to impose a €3 handling fee on low-value parcels starting July 1. The new rule will further increase sellers’ operating costs and intensify competitive pressure in cross-border ecommerce.
What does this mean for cross-border sellers?
Sellers should monitor rising logistics costs and changes to EU tax policies, and reassess their product strategies. Shifting toward higher-value products will be an effective way to address the current challenges.