The global cross-border e-commerce sector witnessed remarkable growth in 2025, with major platforms competing fiercely in international markets. As logistics serves as the backbone of this expansion, Cainiao Network, Alibaba Group's logistics arm, reported a 32% year-over-year increase in overseas warehouse order volume, reflecting both its strategic network development and the industry's robust expansion.
I. Cainiao's Overseas Warehouse Growth Analysis
1. Order Volume Surge
Cainiao processed 32% more overseas warehouse orders in 2025 compared to 2024, demonstrating strong market demand for its localized fulfillment services. This growth stems from continuous investments in warehouse infrastructure, distribution networks, and technological upgrades across global markets.
2. Strategic Global Network
By 2025, Cainiao operated over 40 overseas warehouses across 18 countries and regions, including key markets in Europe, North America, and Asia-Pacific. These facilities were strategically located near major consumer hubs, considering local economic conditions, purchasing power, and logistics infrastructure.
3. Future Expansion Plans
For 2026, Cainiao plans further warehouse expansion in priority markets while accelerating automation upgrades. The adoption of AGVs (Automated Guided Vehicles) and intelligent sorting systems aims to enhance operational efficiency and reduce costs.
II. Innovative Logistics Solutions
1. U.S.-Mexico Cross-Border Service
Cainiao launched a cost-effective U.S.-Mexico parcel service covering 99% of Mexican territories, with prices approximately 40% below market average. This end-to-end solution streamlines cross-border logistics while improving delivery speed.
2. Autonomous Delivery Partnership
Cainiao is negotiating an investment in Jiushi Intelligence to integrate autonomous delivery vehicle operations. This collaboration focuses exclusively on last-mile urban delivery solutions, leveraging Cainiao's brand and Jiushi's technical expertise to address global unmanned logistics demands.
3. Mexico Self-Run Warehouse
The newly operational Mexico fulfillment center features Cainiao's proprietary delivery network, enabling two-day delivery to core areas nationwide. Equipped with digital management systems, the warehouse maintains over 95% on-time performance for order processing and delivery.
III. Cross-Border E-Commerce Market Trends
1. Export Growth
Chinese individual sellers exported $110 billion worth of goods via cross-border platforms in 2025, a 24% annual increase. The EU remained the top destination ($264.4 billion, +42.9%), while Russia saw the fastest growth (+230.3%). B2B exports surged 75% to $25.1 billion.
2. Regional Performance
Guangdong led provincial exports at $434.7 billion, while Hubei recorded the highest growth rate (+95.8% to $109.5 billion). Notably, Shanghai's B2B exports to the U.S. skyrocketed by 25,827%.
3. Import Trends
Bonded warehouse imports grew 17.2% to $191 billion, indicating sustained demand for international goods among Chinese consumers.
IV. Industry Challenges
1. EU Tax Policy Changes
The EU will impose €3 handling fees per low-value parcel starting July 2025, gradually eliminating the €150 duty-free threshold. This follows a 26% increase in low-cost shipments (5.8 billion parcels), with 60% suspected of undervaluation.
2. Platform Competition
Temu captured 24% global market share in 2025, tying with Amazon, while Shein maintained 9%. Traditional platforms like Wish and eBay declined as consumers prioritized transparent shipping costs, faster delivery, and self-collection options.
V. Brand Expansion and Consumer Preferences
1. New Market Entrants
Tmall Global welcomed 2,415 new international brands in 2025, averaging over six daily. The platform now hosts 40,000 brands from 110+ countries, with fastest growth from France, New Zealand, and Australia.
2. Top Product Categories
Health, beauty, and maternal-child products dominated new listings, with infant food brands increasing 128%. Notable growth also occurred in precision nutrition, anti-aging supplements, pet health products, and outdoor equipment.
3. Shopee's Brazil Success
Shopee achieved 100% order growth and 70% sales increase in Brazil through localized fulfillment, with 90% of parcels cleared autonomously and 99% last-mile coverage, including remote areas.
VI. E-Commerce and Consumption Trends
1. Digital Service Growth
China's online service consumption grew 22%, led by sports events (+63.3%), travel products (+40.6%), and online-to-offline dining (+23.7%). The Global Digital Trade Expo showcased 382 debut products from 1,812 international exhibitors.
2. U.S. Omnichannel Dynamics
U.S. omnichannel orders grew 147%, with top 5% brands driving over half the growth. Automated behavioral emails (1.7% of volume) generated 25% of email revenue, while average order value rose 22% to $182.
VII. Macroeconomic and Logistics Development
1. Trade Volume Records
China's cross-border e-commerce reached $2.75 trillion (+70% since 2020), with total foreign trade exceeding $45 trillion. Domestic parcel volume grew 13.7% to 199 billion, while online retail sales hit $15.97 trillion (+8.6%).
2. Consumption Patterns
Online food sales led growth (+14.5%), outpacing apparel (+1.9%) and daily goods (+4.1%). Rural consumption (+4.1%) slightly exceeded urban (+3.6%).
3. Air Cargo Expansion
China added 247 new cargo routes (209 international), connecting 106 global cities across 50 countries, with Asia receiving 102 new routes and Europe 81.
Cainiao's overseas warehouse growth exemplifies the rapid evolution of global cross-border logistics. As e-commerce platforms navigate regulatory changes and shifting consumer expectations, innovations in localized fulfillment and automation will continue reshaping international trade dynamics.