Paypal Expands in China As DHL Tackles Underdeclaration Logistics Costs Rise

This week's key highlights in cross-border e-commerce include PayPal's acquisition of GoPay, officially entering the Chinese payment market. DHL is strictly investigating under-declaration and will impose severe penalties for violations. eBay has announced upcoming freight rate increases from UPS, FedEx, and USPS. Amazon is extending its holiday return window. Furthermore, the South Asian e-commerce market presents significant potential and warrants attention. These developments impact cross-border sellers and require careful consideration to navigate the evolving landscape of international trade and logistics.
Paypal Expands in China As DHL Tackles Underdeclaration Logistics Costs Rise

Imagine eagerly awaiting an international purchase, only to have it stuck at customs due to unexpected fees. The world of cross-border e-commerce can be fraught with challenges. This week brings several significant developments that global shoppers and sellers should note.

90 Tons of Canadian Lobster Arrives in Hangzhou

On December 15, a cargo plane carrying 90 tons of Canadian Boston lobster landed at Hangzhou Xiaoshan International Airport after an 18-hour flight. This marks the first lobster import via chartered flight in Hangzhou Customs District this year, setting a record for the largest single import of edible aquatic animals through the airport. To ensure freshness, customs implemented a "green channel" with 24-hour clearance services, processing the shipment immediately upon arrival.

DHL Cracks Down on Under-Declaration With Heavy Penalties

DHL has introduced strict new measures against under-declared shipments, imposing additional fees up to ¥450 per ticket. Two scenarios will face particular scrutiny:

  • Requests to increase declared value after initial under-declaration
  • Failure to declare shipping and insurance costs where required

The company will enforce these penalties without prior notice, making accurate declarations essential to avoid substantial fines.

PayPal Completes Acquisition of GoPay, Enters Chinese Market

In a landmark move for cross-border payments, PayPal announced on December 19 the completion of its 70% acquisition of GoPay (GuoFuBao Information Technology Co.), becoming the first foreign payment platform licensed to provide online payment services in China. This development may introduce more competition and innovation in China's digital payment sector, potentially benefiting international shoppers with more payment options.

Major Carriers Announce Shipping Rate Increases

eBay has notified sellers about upcoming rate hikes from major logistics providers:

  • UPS: Effective December 26, 2019
  • FedEx: Effective January 6, 2020
  • USPS: Effective January 26, 2020

The platform will update its shipping calculators and label services accordingly, prompting sellers to review their pricing strategies.

South Asia's E-Commerce Growth Potential

A World Bank report highlights significant growth opportunities in South Asian markets, where e-commerce penetration remains low compared to global averages. India's online sales account for just 1.6% of total retail, while Bangladesh stands at 0.7% - far below China's 15% and the global average of 14%. The report suggests that increased e-commerce adoption could enhance regional competitiveness and productivity.

Amazon Extends Holiday Return Window

Amazon has expanded its free return policy for the holiday season. Purchases made between November 1 and December 31 can now be returned until January 31, with the policy covering additional categories including electronics, home goods, and kitchenware. The offer applies to Amazon-fulfilled items under 50 pounds.

These developments underscore the dynamic nature of global e-commerce, where staying informed helps both consumers and businesses navigate an increasingly complex marketplace.