In 2026, cross-border e-commerce has been divided into two worlds: some people make millions a month, and some people work in vain.
They are both engaged in cross-border e-commerce and ship goods from China, but they are divided into two completely disjoint worlds.
In one world, a small team relies on refined operations to earn tens of millions a year and steadily expand production; in another world, sellers stay up late every day to sell goods, and the flow of goods looks good. At the end of the year, when the accounts are calculated, they will either make a small profit or a huge loss, and still have a warehouse of goods.
Let’s first look at two sets of real data to intuitively feel the gap:
First world: high-quality and refined school (22.7% of people)
Representative: Xiao Liu, who makes smart pet supplies.
The gameplay is to cut off 90% of the cluttered categories, focus on only 2 single products, register European and American trademarks, use TikTok to attract traffic + independent stations to accept orders.
In terms of profit, the purchase price is tens of yuan, the selling price is twenty or thirty dollars, the gross profit margin is 55%, the net profit in the first half of 2026 is 2.1 million, and a small factory has been built.
With a team of less than 10 people, AI product selection and automated shelving are extremely efficient.
The second world: low-price sellers (nearly 80% of people)
Representative figure: Lao Wang, a small commodity maker in Yiwu.
The gameplay is to upload 2,000 white-brand products to ERP with one click, and rely on low prices to boost sales.
In terms of profit, the monthly turnover is nearly RMB 10 million, but the gross profit margin is less than 4%. After deducting logistics, advertising, and warehousing fees, it has been losing money for three consecutive quarters.
The current situation is that there are 3 million goods stored in overseas warehouses, and high storage fees are charged every day, and it may collapse at any time.
Marketplace
Pulse’s latest survey is even more disturbing: only 22.7% of sellers have experienced an increase in revenue and profit; 31% have increased revenue without increasing profits; and 38% have experienced a decrease in both revenue and profit.
To put it simply: a few people eat meat, but most people have trouble drinking soup.
What is the difference between the two worlds?
There are 5 core gaps:
1. Product selection logic: casting a wide net vs. precise targeting
Spreading goods (second world): selling whatever is cheap, 1688 can get goods at will, upload 50 links a day, rely on quantity to try your luck, as long as you can place an order, regardless of profit.
Boutique School (First World): Deeply cultivate one vertical category, such as pets, outdoor, and smart home, select 3-5 high-margin products, optimize them repeatedly, and make a lot of money from single products.
The difference is that distributing goods is about “probability”, while high-quality products are about “controlling the results”.
2. Operation method: manual labor vs. AI automation
Distribution and distribution: a team of 20-30 people, all repetitive work: manual selection of products, writing copy, P drawings, and putting them on shelves. They are busy until late at night every day, and the human efficiency is extremely low.
Boutique School: With a team of 10 people, AI does 80% of the work: AI product selection, AI copywriting, AI generation of main images, RPA automatic listing, and employees only do strategy and monitoring.
The difference is that one relies on “human sea tactics” and the other relies on “technical dimensionality reduction.”
3. Profit structure: low profit through volume vs. high gross profit to earn value
Distribution: Compete on low price, customer price is 5-10 euros, gross profit is 3%-5%, and how many dollars you make per order depends entirely on volume. The greater the volume, the higher the risk.
Boutique School: Make differentiation and branding, the unit price per customer is 20-50 euros, the gross profit is 40%-60%, one order can be distributed to dozens of orders, the profit is huge, and the risk resistance is strong.
The difference is that one earns “hard-earned money” and the other earns “valuable money”.
4. Compliance and Risk: Streaking vs. Fully Armed
Publishing: No certification, no trademark, no compliance documents, relying on luck.
Now the EU is cracking down hard, Amazon is blocking accounts, and Temu is tightening, stores are disappearing, money is frozen, and goods are withheld.
Boutique School: CE, ROHS, trademark, and packaging laws are all in place. Compliance is the foundation. No infringing products are involved. The store is stable, the risk is low, and it can be built in the long term.
The difference is that one is dancing on the edge of the cliff and the other is making money in the safe zone.
5. Market Layout: Blind Distribution vs. Precise Partitioning
Distribution: Casting a net across Europe, America, Southeast Asia, and Latin America, going to whichever platform is popular, and not understanding market differences. As a result, Europe and the United States are trapped, and emerging markets have no orders.
Boutique School: Build brands in Europe and the United States (high profits), drive sales in Southeast Asia/Latin America (stable cash flow), accurately match market demand, and do not expand blindly.
The difference is one “beating randomly” and the other “beating skillfully”.
Why did it split?
There are three underlying reasons:
1. Platform rules have changed dramatically: bonuses have disappeared, and low prices have been cracked down on.
In the past, the platform was short of products and encouraged distribution; now that the European and American markets are saturated (growth rate 3% – 5%), the platform requires user experience and cracks down on store groups, duplicate links, and infringing products.
The wave of Amazon account bans continues, and violations will be cleared directly; Temu has started a war in nine European countries, and has canceled the tax exemption for small packages starting from July, adding 5 euros to the cost of each order, and low-priced products will die immediately; TikTok Shop focuses on content and brand, and low-priced white brands have no traffic.
The conclusion is that the era of low-price distribution is completely over.
2. Skyrocketing costs: Logistics, advertising, and tariffs eat up all profits
In terms of logistics, warehouse rents in Europe and the United States have increased by 30%, and first-haul freight has increased by 20%; in terms of advertising, Amazon and Temu traffic costs have increased by 40%. If you don’t advertise, you will lose orders, and if you do, you will not make money; in terms of tariffs, the EU has canceled the tax exemption for less than 150 euros, and the US tax exemption of US$800 is almost gone, and the cost of low-priced products has doubled.
The result is that the 4% gross profit of the shop is directly eaten up by costs, and each order is sold at a loss.
3. Popularization of AI technology: widening the human-efficiency gap
In 2026, AI has become a watershed: for those who can use AI, 10 people can do the work of 100 people, and the efficiency is increased by 10 times; for those who can’t use it, they are still putting it on the shelves manually, and they are exhausted and can’t make any money.
In a word: It’s not that the industry is failing, it’s that the old methods are failing.
Which world should ordinary people enter?
There are 3 practical suggestions:
1. Stop blindly selling goods: 90% of people will lose money
If you are a novice or still selling goods, stop immediately!
Nowadays, distributing goods means “working for the platform and logistics”. It seems that the turnover is high, but in fact there is no profit, and the goods are still being squeezed.
2. Low-cost trial and error products: focus on one vertical category
There is no need to go big at the beginning, start with small single products.
Select products that cost 10 to 30 euros, have a gross profit of more than 40%, and are simple to comply with regulations (such as home storage, pet supplies, gadgets); use AI tools for operations to reduce costs, and one person can manage one store; the market will first focus on Southeast Asia/Latin America (little competition, traffic support), and then Europe and the United States.
3. Compliance is the bottom line: don’t put it on the shelves if you don’t have the qualifications
Do your best to implement CE, trademark, and packaging laws as much as possible. Compliance is not a cost, it is life-saving money.
Don’t take chances. Now the platform has strict inspections. One violation will mean a year of work in vain.
In the final analysis, cross-border e-commerce is divided into two worlds. It is not that the industry is failing, but that the industry has been upgraded.
The previous era of “barbaric growth and making quick money” is over; now it is a new track of “refinement, branding, AI, and compliance.”
The first world (the boutique school): making money by relying on professionalism, technology, and long-term thinking is becoming more and more stable; the second world (the retail school): relying on low prices, luck, and short-term thinking is getting harder and harder.
In the future, cross-border opportunities will always belong to those who understand products, know how to operate, make good use of AI, and pay attention to compliance, rather than those who only sell goods at low prices.
