During this period, the dynamics of major platforms highlighted the industry’s differentiation and transformation under high pressure. Coupang is mired in a governance crisis, Amazon is aggressively squeezing profits from upstream in the supply chain, while Temu and TikTok Shop are accelerating their globalization and professionalization processes through “localization” and “rule upgrades.” Overall, cross-border e-commerce has completely bid farewell to the “low-price era” of rampant growth and entered a new stage where compliance, efficiency, and localization are the core competitive advantages.
Core Dynamics and Interpretations of Various Platforms
Coupang: Data Breach Crisis Escalates, Senior Management Faces Legal Risks
Due to the data breach involving over 33 million users, Coupang’s acting CEO Harold Rogers left South Korea on December 31 after receiving a police summons.
Police are considering imposing an exit ban on his return and requiring him to be questioned in mid-month. This crisis has escalated from a security incident to a matter of corporate governance and law, and will severely distract management in the short term, affecting the platform’s reputation and stable operation. Sellers need to pay attention to potential policy fluctuations on the platform. Amazon: Reversing Tariff Concessions, Demanding Price Reductions from Suppliers Amazon is reportedly demanding discounts of up to 30% from its suppliers. This move aims to reclaim price concessions previously made to suppliers to hedge against US tariffs and shift the risk of future tariff fluctuations to suppliers. This indicates that against the backdrop of widespread pressure on industry profits, Amazon is using its channel dominance to squeeze profits from upstream suppliers. Suppliers/brands relying on Amazon’s VC model will face direct pressure to reduce profits and need to reassess their cooperation models and cost structures. Temu: Deepening Localization Strategy, Launching Local Seller Program in the Middle East Temu officially launched its “Local Seller Program” in the UAE, allowing locally registered businesses with local inventory to join. This plan is part of its “local-to-local” model, already implemented in over 30 markets globally. This move aims to improve delivery speed and user experience, and to enrich product offerings to increase platform stickiness. At a deeper level, it’s a key strategic move to mitigate cross-border logistics costs and policy risks in a high-tariff environment by developing local supply chains. TikTok Shop: Tightening Fulfillment Rules and Actively Expanding into New Markets The platform updated its fulfillment rules, requiring regular orders to update their status to “in transit” within two business days, effective January 26th. Furthermore, it plans to launch the “US-Mexico Program” in April, providing direct shipping from US warehouses to Mexico to help sellers expand into the Latin American market at low cost. Shortening fulfillment times aims to force sellers to improve operational capabilities and optimize the consumer experience. Expanding into new markets like Mexico reflects the platform’s strategy of seeking incremental growth in North America and diversifying risks associated with a single market.
In-depth industry trends and data insights
Macroeconomic environment: Tariffs reshape cost structure, low-price model fails
The significant increase in US tariffs on Chinese goods and the elimination of tax exemptions for packages under $800 have fundamentally shattered the foundation of the low-price model relying on “direct small parcels from China”. After attempting to raise prices to cope with tariffs, Temu and SHEIN saw weekly sales declines of 17% and 23% respectively. This confirms that a simple price advantage is unsustainable under heavy taxes.
Platform commonality: A comprehensive shift towards “screening” and “efficiency”
To cope with cost pressures, various platforms have unanimously strengthened their requirements for seller screening and service capabilities.
Stricter regulations are emerging, such as TikTok Shop raising security deposits and shortening shipping times on its US platform; Temu is strengthening product verification. Costs are shifting, with Amazon requiring suppliers to share costs; advertising and traffic fees on various platforms continue to rise. Platforms are no longer guaranteeing low-quality, low-price goods, accelerating the elimination of sellers lacking supply chain and financial resilience. Logistics and Customs Clearance: Innovative Models Enhance Certainty Weihai Customs’ innovative “four-port linkage” full-truckload transportation model enables cross-border e-commerce goods to arrive “eveningly,” reducing logistics costs by approximately 30%. Simultaneously, the established export return center warehouse effectively solves the return problems faced by platforms like Coupang. Against the backdrop of overall pressure on cross-border logistics, such certainty-based logistics channels built through model innovation and customs collaboration will become scarce resources and key considerations for sellers’ strategies. Strategy Recommendations Firstly, cost and risk control should be restructured, immediately recalculating the true profit model under high tariffs and platform cost shifting. Supply chain security and compliance costs should be included as core considerations. Secondly, it’s crucial to establish a localized supply chain. Actively researching Temu’s “Local Seller Program,” TikTok’s “US-Mexico Partnership Program,” and similar overseas/local warehouse models is a long-term solution to address tariff barriers and improve the delivery experience. Thirdly, embracing systematic tools is essential. With the increasing complexity of operations (multiple platforms, multiple markets, multiple warehouses), investing in mature ERP systems for refined operations and integrated business and financial management has shifted from an “option” to a “survival necessity.” Fourthly, focusing on emerging logistics hubs, particularly cross-border ports like Weihai that have achieved efficiency advantages through institutional innovation, can serve as logistics hubs for specific markets (such as South Korea) to reduce logistics costs and time.
