From Direct‑Line Logistics to the Global Era: What Major Milestones Has Cross‑Border Logistics Experienced?

Release date:

2024-08-27

Author:

Jinhua Logistics

Cross-border e‑commerce logistics has evolved from direct‑shipping small parcels to overseas warehouses, then to integrated warehousing and delivery, ultimately culminating in a comprehensive cross-border supply-chain solution—a progression that unfolds across points, lines, surfaces, and volumes.

From its nascent beginnings to continuous growth and expansion, China’s cross-border e‑commerce logistics sector has undergone more than a decade of development. Each iteration and innovation in logistics models and product‑channel strategies has been accompanied by adjustments and changes in platform policies, tax and customs regulations, and the flow of goods and commerce. From the perspective of the broader industry cycle, the development of the cross-border e-commerce logistics sector can be broadly divided into three stages. :

01 From 2008 to 2015, the era of direct‑shipping logistics was dominated by postal small packets.

Image source: Xiaosheng Research Institute

In the early stages of China’s cross-border e-commerce logistics development, With the rise of eBay’s e‑commerce platform, the industry entered an era dominated by low‑cost postal parcels that could ship worldwide for a single fee. Subsequently, AliExpress experienced rapid growth, driving a steady surge in demand for direct‑shipping small‑parcel logistics that deliver goods directly from China to overseas end‑consumers. As the mainstays of cross‑border direct‑shipping logistics, Hong Kong Post and China Post faced capacity constraints in the short term, prompting numerous foreign postal services to enter the Chinese market via agency arrangements to collect shipments. Over time, dozens of foreign postal operators—including Singapore Post, Netherlands Post, Sweden Post, and Belgium Post—made their way into China’s cross‑border e‑commerce logistics sector. As cross‑border e‑commerce sellers placed ever higher demands on delivery speed and customer experience, the international postal parcels, standard mail, and registered‑mail products under the Universal Postal Union (UPU) system could no longer fully meet these needs. In response, China Post began rolling out E‑Postbao, a series of commercial dedicated‑line services based on bilateral agreements between the two countries, which quickly earned strong market acclaim. Following this, many cross‑border logistics firms introduced specialized small‑parcel lines that integrate commercial express and postal resources, further refining and diversifying the product landscape of direct‑shipping logistics channels for cross‑border e‑commerce.

02 The era of dual-wheel drive: direct‑shipping dedicated lines and overseas warehouses, 2015–2020.

Image source: Xiaosheng Research Institute

From Starting in 2015, as an increasing number of overseas cross-border e‑commerce platforms—primarily operating under direct‑shipping and product‑listing models—began recruiting sellers in the Chinese market, demand for small‑parcel cross‑border direct‑shipping logistics surged. At the same time, Amazon’s Global Selling program ramped up its efforts to attract Chinese merchants, drawing more and more cross‑border e‑commerce sellers onto its platform and giving rise to a large cohort of logistics firms specializing in FBA first‑leg transportation—shipping goods from domestic seller warehouses to overseas FBA fulfillment centers. In 2016, as cross‑border e‑commerce sellers sought the optimal balance among delivery speed, cost efficiency, and customer experience, ocean‑express services—offering transit times between air freight and standard sea freight—gained traction. Ocean‑express carriers, with Matson as a leading example, became a preferred choice for many FBA logistics providers aiming to strike the ideal trade‑off between speed and cost. As cross-border e‑commerce logistics, payment, and other ancillary services continue to expand, the industry’s end-to-end service ecosystem is steadily improving, driving cross-border sellers to increasingly focus on higher‑value, bulky product categories. In this context, more and more sellers are adopting overseas‑warehouse fulfillment for their best‑selling lines, significantly enhancing the shopping experience for international buyers. Consequently, the sector is gradually shifting toward localized operations. In 2017, as increasing volumes of Chinese cross-border e‑commerce goods entered Europe and the United States, tax issues in this sector drew widespread international attention. Developed economies in Europe and North America began to impose clear requirements for the tax‑compliant operation of cross‑border e‑commerce platforms, making integrated, collaborative logistics‑tax solutions an urgent priority. In 2018, e‑commerce giants such as Wish and Joom accelerated the digitalization of their logistics networks, triggering a major reshuffle in the dedicated small‑parcel market. Logistics service providers endorsed by these platforms saw their scale and influence grow steadily, while those delisted faced an existential crisis. Throughout this industry‑wide consolidation, e‑commerce platforms increasingly assumed a pivotal role, with trends toward self‑built and platform‑integrated logistics becoming ever more pronounced.

03 The era of globalized cross-border networks and supply chain collaboration after 2020.

Image source: Xiaosheng Research Institute

Given that cross-border e-commerce services and deliveries are both carried out overseas, establishing a globally integrated cross-border logistics fulfillment network is of paramount importance. For example, Cainiao Network, under Alibaba, advocates for… EWTP’s global logistics backbone network, coupled with Cainiao’s acquisition of Dianfeng, has enabled the company to proactively strengthen its overseas warehousing network and direct‑shipping logistics system. Similarly, Zongteng Group, through its acquisition of Yuntu Logistics, has established a cross‑border logistics service ecosystem in which Gucang’s overseas warehouses and Yuntu’s direct‑shipping routes operate in seamless synergy. Looking ahead, the integration of cross‑border e‑commerce logistics firms’ global service capabilities with their localized operational expertise will be a key focus. Cross-border e‑commerce logistics has evolved from direct‑shipping small parcels to overseas warehouses, then to integrated warehousing and delivery, ultimately culminating in a comprehensive cross-border supply-chain solution—a progression that unfolds across points, lines, surfaces, and volumes. Expanding global service capabilities and enhancing supply-chain stability are both critical challenges that cross-border e‑commerce logistics enterprises will need to address in the future.

Analysis: The underlying logic of China’s logistics development has undergone a fundamental shift.

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