Cross-border e-commerce sellers currently face a perfect storm of operational challenges. On one front, the freight forwarding industry has been rocked by a series of bankruptcies, leaving sellers vulnerable to supply chain disruptions. Simultaneously, Amazon's evolving platform policies continue to squeeze profit margins through aggressive pricing requirements.
Part 1: Navigating the Freight Forwarder Crisis
The past year has seen unprecedented turbulence in cross-border logistics, with multiple freight forwarders collapsing due to financial instability. These failures have left sellers bearing significant losses from stranded shipments and unpaid claims.
Recent cases illustrate the systemic nature of the problem:
- Shenzhen Rui* International Logistics: The company recently announced plans to relocate operations while acknowledging unsustainable losses from decreased shipping volumes, payment collection challenges, and razor-thin margins in competitive Western markets.
- Quick Ship Logistics: This Shenzhen-based forwarder collapsed due to cash flow issues, leaving partnered sellers with financial losses and disrupted supply chains.
- Unnamed Supply Chain Company: A Shenzhen firm declared bankruptcy after port congestion led to unmanageable detention fees, despite emergency fundraising attempts.
Industry experts recommend several protective measures for sellers:
- Partner with established, financially stable logistics providers
- Diversify across multiple freight forwarders to mitigate risk
- Secure comprehensive cargo insurance coverage
- Monitor forwarders' financial health through regular audits
- Negotiate detailed contracts with clear liability terms
Part 2: Amazon's Pricing Paradox
Following Prime Day events, many sellers report declining sales volumes and extended recovery periods. The platform's pricing requirements now mandate Prime Exclusive Discounts to be set below the 30-day historical low price—a significant tightening from previous 10% discount thresholds.
This policy shift reflects Amazon's strategic response to competitive pressure from discount platforms like Temu. By enforcing lower seller prices, Amazon aims to maintain its value proposition to consumers—but at the expense of merchant profitability.
Sellers can employ several strategies to maintain margins:
- Develop differentiated products that command premium pricing
- Optimize supply chains to reduce operational costs
- Improve conversion rates through enhanced listings and targeted advertising
- Diversify sales channels beyond Amazon's marketplace
- Monitor platform policy changes for timely adjustments
The cross-border e-commerce landscape continues to present formidable challenges. Successful sellers will need to balance risk management in logistics with innovative approaches to maintaining profitability amid platform pricing pressures.