🔎 HOW 2024 RE-SHAPED CHINESE E-COMMERCE

Brands Factory recently highlighted how 2024 brought major shifts in global e-commerce, most notably Amazon’s fierce rivalry with Temu and the rise of semi-managed logistics.

Combined with stricter international regulations and changing consumer preferences, these factors are shaping new opportunities—and new risks—for Amazon sellers.


Intensifying Competition:

Amazon vs. Temu

▪️ Temu has now surpassed Amazon’s global user base.

▪️ By October, Temu became the second most-visited e-commerce site worldwide.

▪️ Over 60% of top Chinese Amazon sellers have begun transitioning to Temu.

Amazon’s Countermove

▪️ Launched Haul, a low-price marketplace for sub-$20 items, to compete directly with Temu.

▪️ Price and speed are now crucial differentiators. Amazon’s traditional advantages in logistics are being challenged by Temu’s cost-focused model.


Evolving Logistics Models:

Semi-Managed Logistics

▪️ Temu, Shein, AliExpress, and TikTok Shop integrate sellers’ shipping systems to shorten delivery times to one week or less.

▪️ Larger and more diverse product categories (like food, books, and home goods) are now feasible for cross-border shipping.

Why It Matters

▪️ Fast, flexible shipping attracts customers wary of the traditional two-week wait times common in cross-border e-commerce.

▪️ This model is expanding beyond cross-border platforms, as domestic giants like Taobao and Ele .me roll out similar services.


Heightened Global Regulations:

Stricter Trade Policies

▪️ The U.S. is considering lowering its $800 duty-free threshold and tightening T86 clearance rules.

▪️ Other countries (Brazil, Malaysia, South Africa) have introduced new VAT requirements, raising costs for Chinese exporters.

▪️ Proposed tariffs (up to 60% on some goods) could further complicate cross-border trade.

▪️ Chinese companies are setting up overseas factories and R&D centers to comply with local regulations and reduce tariff impact.


Shifting Away from “Stocking Mode”:

What’s Changing

▪️ Platforms now enforce stricter rules, demanding quality over sheer quantity.

▪️ Brand building and content-driven marketing are increasingly important. Short videos, live streams, and social media engagement drive consumer trust and loyalty.


What Amazon Sellers Should Do:

1. Focus on Competitive Pricing & Shipping

▪️ Stay vigilant about costs and delivery speed to match the budget-friendly platforms.

2. Strengthen Brand Identity

▪️ Move from a mass-listing approach to creating a recognizable, content-driven brand presence.

3. Adapt to Regulations

▪️ Monitor policy changes (duty thresholds, VAT updates, tariffs) and adjust product sourcing or warehousing as needed.

4. Expand Your Channels

▪️ Reduce reliance on Amazon by exploring other e-commerce marketplaces and offline opportunities.


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