The recent National Day holiday brought anything but relaxation for cross-border e-commerce sellers. The simultaneous implementation of stricter tax regulations and policy updates from major platforms like Amazon and eBay signals the industry's accelerated transition toward refined operations. This article provides an in-depth analysis of these regulatory changes and their strategic implications.
1. Tax Compliance: From Unregulated Growth to Precision Management
Historically, cross-border e-commerce sellers operated in tax gray areas—fertile ground for entrepreneurial growth. However, the "Internet Platform Enterprise Tax Information Reporting Provisions" (State Council Order No. 810), effective October 1, 2025, introduces unprecedented transparency. Industry experts describe this as a watershed moment in tax regulation for cross-border e-commerce.
1.1 Regulatory Rationale: Closing Gaps for Sustainable Growth
The explosive expansion of cross-border e-commerce, while economically beneficial, revealed systemic issues including tax oversight deficiencies and data opacity. New measures from China's tax authority establish a comprehensive regulatory framework to address these challenges. Sellers relying on tax advantages now face stringent compliance requirements.
1.2 Key Requirements: Three Critical Aspects
- Universal Reporting: All platforms facilitating transactions for Chinese sellers—including Amazon, AliExpress, and eBay—must submit tax information, transforming platforms from data silos into regulatory partners.
- Detailed Disclosures: Quarterly reporting of seller identities and income details begins October 2025, with initial submissions covering July-September data, enabling precise tax oversight.
- Enforcement Mechanisms: Non-compliant platforms face fines up to ¥500,000, with potential business suspension for severe violations, demonstrating regulatory resolve.
1.3 Platform Responses: Proactive Compliance Measures
Major platforms including AliExpress, Shopee, and Shein have initiated seller audits, requiring businesses exceeding ¥5 million in annual sales to register as general taxpayers—a clear alignment with new regulatory expectations.
2. Amazon FBA Policy: Partial Refunds Enhance Efficiency
Amazon's new partial refund feature for FBA sellers represents a strategic enhancement to return management, offering operational cost savings while maintaining customer satisfaction.
2.1 Functional Overview: Flexible Resolution Options
Sellers may now issue refunds from 0%-100% without requiring product returns, significantly reducing reverse logistics costs—particularly impactful for high-value items.
2.2 Implementation Scope: Balanced Protections
Currently available in the U.S. and five European markets (UK, Germany, France, Italy, Spain), the feature excludes hazardous or health-related products. Eligibility filters prevent abuse by screening buyer return histories.
2.3 Operational Control: Customizable Management
Sellers retain full configuration authority, with options to enable the feature globally or per product (ASIN). This complements Amazon's existing sub-$75 refund-only policy, allowing combined strategies for optimized returns management without commission changes.
3. eBay Policy Shift: Mandatory DDP for Korean Sellers
Effective October 17, eBay requires all Korean sellers shipping to the U.S. to adopt Delivered Duty Paid (DDP) terms—a direct response to customs-related buyer complaints.
3.1 DDP Advantages: Simplified Cross-Border Transactions
Unlike traditional DDU (Delivered Duty Unpaid) shipments requiring buyer-side customs clearance, DDP includes all fees upfront, eliminating unexpected costs and clearance delays for recipients.
3.2 Strategic Impact: Enhanced Market Competitiveness
This policy aims to reduce order cancellations and disputes through transparent pricing, strengthening Korean sellers' position in the competitive U.S. market.
4. Amazon Private Label: Grocery Expansion Through Brand Consolidation
Amazon's October 1 launch of "Amazon Grocery"—a unified private label combining Amazon Fresh and Happy Belly product lines—marks a strategic push into everyday essentials, with most items priced under $5.
4.1 Brand Strategy: Streamlined Consumer Recognition
The consolidation creates a cohesive grocery identity, reducing marketing complexity while expanding product assortment.
4.2 Distribution Channels: Omnichannel Accessibility
Products are available through both digital platforms and physical stores, maximizing consumer touchpoints.
4.3 Market Reception: Investor Confidence
The announcement correlated with a 0.33% share price increase, reflecting market optimism about Amazon's consumer goods expansion.
Industry Outlook
The recent regulatory and platform developments underscore cross-border e-commerce's maturation from unconstrained growth to disciplined operations. Success in this evolving landscape will require sellers to prioritize compliance, customer experience, and channel diversification.