Few could have predicted how dramatically the cross-border e-commerce landscape would transform in just a few short years. Temu, the international version of Chinese shopping platform Pinduoduo, has emerged as a dark horse, capturing global market share at an astonishing pace. According to an IPC report, Temu's global market share skyrocketed from less than 1% at its 2022 launch to 24% by 2025, putting it on equal footing with e-commerce giant Amazon as they collectively dominate half of the cross-border e-commerce market. This remarkable growth represents more than just numerical success—it signifies a fundamental disruption of traditional cross-border e-commerce models and heralds profound industry transformation.
Temu's Explosive Growth: The Secrets Behind Surging Order Volumes
IPC's 2025 Cross-Border E-Commerce Consumer Survey, which polled 30,970 consumers across 37 countries and regions, reveals sustained consumer confidence in cross-border online shopping. Despite evolving global customs policies reshaping e-commerce supply chains, Chinese e-commerce exports—particularly through Temu—have experienced significant growth over the past three years.
The data shows Temu and Amazon each command 24% of cross-border e-commerce transaction share in 2025, nearly neck-and-neck. It's important to note these figures represent order volume rather than transaction value, suggesting Temu may still trail Amazon in average order value despite matching its order quantity.
Temu's order growth trajectory is particularly striking. From its modest 1% global cross-border market share at launch in 2022, the platform achieved a quantum leap to 24% within three years. Meanwhile, Amazon's market share has shown slight decline—25% in 2024 compared to 26% in previous years, dropping to 24% in 2025. This indicates Temu's growth primarily came at Amazon's expense rather than through market expansion.
Traditional Players Under Pressure: Who's Falling Behind?
Beyond Temu and Amazon, other cross-border platforms show varied performance. Shein maintains a stable 9% market share but lacks Temu's growth momentum. AliExpress declined from 9% in 2024 to 8%, while eBay holds about 5%. Zalando emerges as Europe's largest cross-border platform with 3% share in 2025.
The long-term industry shift becomes more apparent when examining 2018-2025 trends. Wish saw a staggering 95% reduction in cross-border share, eBay declined 68%, and AliExpress dropped 33%. These former industry leaders now face immense competitive pressure in the new landscape.
The Full-Turnkey Model: Temu's Winning Formula?
Industry experts attribute Temu and Shein's rapid international success to their "full-turnkey model," which manages the entire process from supply chain and logistics to marketing and after-sales service. This approach offers key advantages:
- Reduced intermediaries lower costs: By connecting manufacturers directly with consumers, the model eliminates middlemen markups, enabling lower prices.
- Digital systems enable precision response: Advanced digital infrastructure allows precise demand forecasting and implements flexible "small-batch rapid-response" supply chains that minimize inventory while boosting efficiency.
Analysts note Chinese cross-border platforms' core competitiveness lies in competitive pricing and vast product selection. While Amazon primarily serves mid-to-high-end markets, Temu and similar platforms fill the demand for affordable goods in developed nations.
These Chinese platforms maintain pricing control to prevent internal competition while leveraging big data analytics to quickly identify trending products—capabilities supported by China's extensive supply chain network and flexible production systems.
Tax Policy Tightening: Cross-Border E-Commerce Faces Transformation
By 2025, a global wave of stricter cross-border tax policies is reshaping the industry. From the U.S. and EU to Southeast Asia and Latin America, governments are eliminating or significantly reducing small parcel tax exemptions to address revenue loss, protect domestic industries, and level the competitive field. This "tax reform storm" not only alters operational logic but accelerates the industry's shift from "low-price competition" to "value-driven differentiation."
Experts emphasize that small parcel tariffs represent a critical component of international trade policy and economic sovereignty. Platforms must strengthen compliance with destination countries' tariff policies while establishing overseas warehouses in non-sanctioned countries as indirect workarounds.
Despite policy changes, consumer demand persists—excessive restrictions have paradoxically increased cross-border small parcel volumes from China, potentially fueling gray market channels if policies remain ineffective long-term.
The Essence of Cross-Border E-Commerce: Global Supply Chain Reorganization
Industry analysts reframe cross-border e-commerce as fundamentally about "global supply chain reorganization" rather than simple buying and selling, highlighting three key insights:
- Competitive advantage lies in efficiency, not just low prices: Chinese factories' rapid response capabilities—supported by specialized industrial clusters—represent unmatched global production flexibility.
- Low average order value serves strategic market penetration: Establishing presence in everyday consumers' shopping carts creates infrastructure for future brand development and value growth.
- The critical transition from "selling" to "establishing roots": Trade barriers and tariff adjustments compel transformation toward local warehousing, services, and brand compliance—the shift from "guerrilla tactics" to "established operations" marks the path to true globalization.
Conclusion: The Future of Cross-Border E-Commerce
Temu's rise has undeniably disrupted the cross-border e-commerce sector. While its low-price strategy and full-turnkey model enabled rapid market capture, challenges from tightening tax policies and increasing compliance requirements loom. The future will favor platforms that combine supply chain efficiency, brand building, and regulatory compliance over pure price competition. Chinese cross-border enterprises must navigate this evolving landscape to secure sustainable global positioning.