Alibaba Invests in Turkish Market, SHEIN Deepens Industrial Belts | Cross-border E-commerce Weekly Report

Compiled | Zhou Xinyi

[Ebrun Original] Amazon opens the largest distribution center in Latin America; Alibaba invests in the Turkish market; SHEIN plans to deepen industrial belts in 500 cities nationwide.

In the past week, the following events have taken place in the cross-border e-commerce field:

# Platform Trends #

[Amazon]

1. Amazon Prime Day set: Some sites waive coupon fees, self-delivery merchants can also participate

Amazon recently announced that the Amazon Prime member campaign will be held from October 10th to 11th (open at 3 am Eastern Time in the United States on October 10th) and will cover 19 countries. Among them, the Japan site will be held from October 14th to 15th, local time.

During this campaign, Amazon has relaxed certain thresholds and provided subsidies to merchants to participate in the campaign. In addition to Amazon FBA sellers, self-delivery (MFN) sellers on the US site, Canadian site, and European site who meet the corresponding delivery performance requirements are eligible for Prime exclusive discounts. Meanwhile, during the October campaign, Amazon has implemented a policy to waive coupon fees in some European sites—Amazon is subsidizing in the Italian, Spanish, Dutch, Swedish, Polish, and Belgian sites, allowing sellers to set up coupons for free.

2. Amazon opens its largest last-mile delivery center in Latin America

Amazon officially launched the DXX1 delivery station, its largest last-mile delivery center in Latin America, located in Mexico City, covering an area of over 30,000 square meters, equivalent to the size of six football fields.

Since its initial launch in Mexico in 2015, Amazon has invested up to 52 billion pesos (3 billion US dollars), to compete with platforms such as MercadoLibre in this second largest economy in Latin America. Mexico City and its surrounding areas are home to approximately 22 million people, making it one of the largest urban centers in Latin America.

3. Amazon reminds sellers to prepare inventory for Black Friday in advance

Amazon recommends that third-party sellers place their holiday inventory in the fulfillment network by October 26th to ensure preparedness for the surge in Black Friday orders. Amazon states that its fulfillment centers will focus on the goods receiving process in October. It will also intensify operations again to prepare for the holiday shipping peak, hoping that sellers have enough inventory to meet the expected demand peak.

October also marks higher Amazon fulfillment costs. Peak season fees will be in effect from October 15th to January 14, 2024. However, sellers who use Amazon warehousing and delivery do not need to worry about the increase in warehousing fees during the holiday period. Amazon has announced that this service will cancel the peak pricing in the fourth quarter.

4. Amazon launches MCF service in India, helping sellers to sell through multiple channels

Amazon announced the launch of Multi-Channel Fulfillment (MCF) in India, allowing businesses of all sizes in different industries to leverage the power of its global delivery network to serve customers through various sales or distribution channels, anytime and anywhere. With MCF, sellers can generate orders outside of Amazon, eliminating complexity and simplifying the entire order fulfillment process.

According to Amazon, through MCF, sellers can expand their delivery range in India using the postal codes it serves, opening up new business opportunities. MCF allows sellers to easily create and track orders for shoppers outside of Amazon, generate tax invoices, and ensure rapid delivery and quick fulfillment.

[Alibaba]

1. AliExpress unveils Double 11 strategy: simultaneously enrolling new merchants with Black Friday, exclusive traffic support for new products

Global AliExpress, Alibaba's cross-border e-commerce platform, officially announced its Double 11 strategy. This year, the entire event will start from October 30th and end on November 29th, covering the Choice Day annual ceremony, 11.11, and Black Friday, lasting for a month in total.

After signing up for the Double 11 event, merchants can easily enroll in the Black Friday event and can independently modify the prices of Black Friday products at a later stage. For products enrolled in the promotion, AliExpress requires prices to be reduced to the lowest price in the past 90 days + 5% discount. Enrolled products will be automatically bound with cross-store discounts, with a $3 discount for every $15 spent. The cross-store discount will be a joint effort between the platform and the merchants, and the specific ratio will vary across different markets; the Choice channel will receive special subsidies.

2. Alibaba announces a $2 billion investment through Trendyol in Turkey

Alibaba announced that it would invest $2 billion in Turkey through its Turkish e-commerce platform Trendyol, with $1.4 billion already invested through Trendyol.

Alibaba plans to establish a data center and a logistics center in the Turkish capital, Ankara, and set up an export operations center at the Istanbul airport. This move is in line with previous plans; according to Turkish newspaper Sabah, in January, Alibaba planned to invest over $1 billion in Turkey to build a logistics hub at Istanbul Airport and a data center near Ankara.

[TikTok]

1. Welcome Black Friday! TikTok Shop offers subsidies to sellers

To attract its sellers to participate in the Black Friday shopping festival from October 27th to November 30th, TikTok will provide sellers with up to a 50% discount subsidy to encourage consumers to shop at its recently launched TikTok Shop.

Apart from short video and live shopping, TikTok e-commerce has also introduced a series of services for merchants and creators, including product display pages, online stores, and the "Alliance Program" that connects merchants and creators. Additionally, TikTok e-commerce has launched the "Fulfilled by TikTok" plan to help merchants store, select, pack, and deliver goods, as well as introduced a secure payment system developed in collaboration with third parties. (IT House)

2. TikTok Shop releases comprehensive hosting preparation guide for Black Friday promotion

TikTok Shop has released a comprehensive hosting preparation guide for the Black Friday promotion. TikTok Shop advised merchants to complete the full-hosted settlement for all new Black Friday merchants by the end of October and finish shelving Black Friday products by October 27th. Regarding the product categories and selection, the official manager of TikTok Shop stated that the fashion and shoes category should be renewed during the festive period, focusing on the three major trend styles of "leisure, elegance, and parties", as well as the needs for Halloween and the development of men's accessories. For the home and outdoor categories, the focus should be on the holiday atmosphere and home comfort during the festival.

3. AfterShip collaborates with TikTok Shop to help merchants synchronize product information across channels

International e-commerce B2B SaaS platform AfterShip has announced a strategic partnership with TikTok Shop, launching the e-commerce SaaS product AfterShip Feed specifically developed for TikTok Shop. With AfterShip Feed, e-commerce merchants can automatically synchronize product information (such as products, prices, and inventory) sold on other e-commerce platforms to the TikTok Shop e-commerce platform. At present, AfterShip Feed has been launched in the UK and US markets and will support additional regions in the future.

It is reported that in the past, merchants who wanted to join TikTok Shop had to spend a lot of time manually adding product information one by one or using other cumbersome methods to export and import multiple product and order information. With AfterShip Feed, merchants only need to follow a few simple steps: install the product—authorize—follow the operation instructions and click a few times with the mouse to complete the batch synchronization, significantly improving the efficiency of product shelving and solving the problem of inventory management synchronization and order management across different channels.

[SHEIN]

1. SHEIN announces the launch of the Industrial Belts Overseas Plan in 500 cities nationwide

At a recent investment promotion strategy conference, SHEIN announced that it would launch the Industrial Belts Overseas Plan in 500 cities nationwide and is expected to deepen the industrial belts within three years. SHEIN has explained that the platform has developed a "self-operated brand + platform" development model, with two different modes of independent operations and agency operations. For example, for small and medium-sized sellers without overseas third-party platform sales and operation experience, SHEIN provides agency operation services including product operation, warehousing, logistics, customer service, and after-sales. Currently, the platform model of SHEIN has been launched in Brazil, the United States, Mexico, and is further expanding into the global market including Europe.

2. SHEIN becomes the third e-commerce platform in Brazil to obtain import compliance certification

The Federal Revenue Service of Brazil announced that the Chinese e-commerce platform SHEIN has obtained the Import Compliance (Remessa Conforme) certification in Brazil, meaning that consumers in Brazil who purchase goods below $50 on the platform's website will enjoy tax benefits and be exempt from the federal import tax. According to regulations, consumers only need to pay a 17% VAT.According to reports, in addition to SHEIN, which has just joined the Brazilian Import Compliance Plan, two other companies that have previously obtained import compliance certification are the Brazilian e-commerce company Sinerlog and AliExpress, a website under China's Alibaba. (China-Brazil Business Information Network)

SHEIN UK subsidiary established 16 months, with revenue breaking 1.1 billion pounds

SHEIN recently submitted documents to the UK Company Registry, showing that the SHEIN UK subsidiary achieved sales of 1.12 billion pounds, a gross profit of 26.23 million pounds, and a net profit of 9.8 million pounds in the 16 months ending on December 31, 2022. Records show that the company was established on September 6, 2021, with a total of 14 employees and has opened three pop-up stores in London during this period.

【Other Platforms】

1 Walmart, Target, and Best Buy Announce Fall Promotions

According to foreign media reports, several US e-commerce platforms will host promotional events in October to seize the peak season traffic. Following Amazon's announcement of the second "Prime Big Deal Days" promotion from October 10th to 11th, Walmart, Target, and Best Buy all announced their own promotions on Wednesday, and their fall promotions coincide with Amazon's schedule. Walmart will hold the "Walmart Deals - Holiday Kickoff" promotion from October 9th to 12th; Target announced its annual "Circle Week" fall promotion from October 1st to 7th; and Best Buy will kick off its first wave of holiday promotions on October 1st, with the event lasting for a month. (Ebrun)

2 Shopee and Lazada to Launch a New Round of Commission Adjustments

On September 22, Shopee and Lazada's Thailand stations are set to launch a new round of commission adjustments in October, sparking heated discussions. Industry insiders indicated that this may violate antitrust laws and needs attention from relevant authorities.

According to the official website, Lazada has adjusted the commissions for products in the LazMall: starting from October 1st, electronic products in LazMall will be charged a 5% commission, while consumer products, fashion products, and regular products will be charged a 7% commission. At the same time, Shopee announced that it will again raise commission fees on October 15 this year. The commission fee for non-Mall sellers will increase from 4.28% to 5.35%, marking the second fee increase within 7 months. Since the first adjustment, Shopee's commission fees have risen by as much as 150%. (Cross-border Southeast Asia)

3 Shopee Philippines: Platform to Start Monitoring Product Quality

Shopee Philippines e-commerce platform announced that, in order to provide a better shopping experience, the platform will start monitoring product quality. The platform will monitor sellers' product quality based on two indicators: returns/refunds and buyer ratings. Sellers with more return/refund cases or one-star ratings are more likely to need to optimize their product quality.

4 Shopify Launches "Shopify Bundles" to Help Merchants Increase Average Order Value

Shopify has recently launched the official free app "Shopify Bundles," providing targeted services for merchants including product bundle selection and product inventory supervision. Currently, all merchants with Shopify packages can download, install, and use it for free to create, edit, and bundle products, setting the number of products and multiple attributes in the bundle according to different needs.

It is understood that product bundles consist of two or more products and are divided into fixed, mixed, and combined types. They typically attract high conversion with discounted prices, helping merchants increase average order value, clear old inventory, increase product visibility, and meet customer demands for multiple product attributes. (E-commerce Report)

5 eBay Rolls Out AI-Generated Listing Tool, Testing Multiple AI Tools

eBay recently announced the launch of an AI-generated listing tool, which is open to all sellers. It is reported that in early 2023, eBay developed this tool using OpenAI's ChatGPT for about a month and launched it to all sellers in August. The tool can create product listings based on the information provided by the seller, including category, color, brand, and other product details.

It is reported that 30% of eBay sellers are currently using the AI-generated listing tool that eBay has launched. By the end of July, 80% of sellers expressed satisfaction with the tool, making it the most well-received tool launched by eBay recently. 95% of sellers reported being generally satisfied with the AI-generated product descriptions.

# Business Community #

1 Cross-border seller SanTai shares in the GEM IPO with a market value exceeding 5.7 billion yuan

It is reported that Shenzhen SanTai E-commerce Co., Ltd. (referred to as "SanTai Shares") recently issued its first public offering of shares and issued an announcement for its GEM listing. Its stock code is 301558. Market information shows that its price-earnings ratio is 37.62%, and its total market value has reached 5.782 billion.

In this GEM listing, SanTai Shares publicly issued 118.46 million shares at a price of 7.33 yuan per share, raising a total of 868 million yuan, mainly for the construction of the research and design center, expansion of warehousing and logistics system, construction of the Zhengzhou headquarters operation management center, and supplementary working capital.

2 Bestore's First Batch of Cheese Bars Exported Overseas, Leading the Way into the Australian and Southeast Asian Markets

Recently, at the Bestore Shanghai Fengxian Factory, the first batch of cheese bars destined for overseas markets was dispatched, with destinations including Australia and Southeast Asia. This marks Bestore's official entry into the international market.

It is reported that Bestore's overseas strategy is coordinated and operated by its high-end cheese brand Brownes, and the main products initially exported are cheese bars. "The cheese bars for international markets currently come in three flavors: original (salty), vanilla, and strawberry. The original flavor has been modified from sweet to salty to better suit foreign consumers and maintain the natural aroma of the cheese," said a relevant person in charge.

# Overseas Marketing #

1 Meta Updates Seasonal Marketing Tools, Allowing Merchants to Set Large Promotion Ad Budgets in Advance

Meta recently announced the launch of new advertising marketing tools for the upcoming holiday season (November to January), including ad budget scheduling, enabling merchants to set higher ad budgets in advance at specific times. Promotion ads, reminder ads, store ads, and other advertising tools will be further optimized.

Specifically, merchants can set different budgets for specific time ranges. For example, during weekends or peak shopping periods such as Black Friday and Christmas, merchants can proactively set higher ad budgets to attract more customers. After the promotion period ends, the ad budget will automatically revert to the originally set daily budget without additional action. Previously, merchants had to manually adjust the budget during those time periods.

2 WhatsApp Transitions into a Super App, Will Support Train Booking and In-app Payments

Meta recently announced several updates for WhatsApp: 1. The addition of "Flows" which allows businesses to offer richer functions to users, such as train bookings, meal reservations, etc.; 2. Users in India can add items from WhatsApp to their shopping carts and complete payments within the app; 3. The introduction of "blue V verification" for enterprises, which was previously tested on Instagram and Facebook and is now set to be launched on WhatsApp.

"Flows" functionality will be opened to all businesses in the coming weeks, allowing for direct implementation of various functions such as train bookings, meal reservations, and appointments within the WhatsApp app without the need to redirect to external links. "Through Flows, businesses will be able to offer menus and customizable forms to support different needs," Meta stated.

# Cross-border Logistics #

1 USPS Cancels Peak Season Surcharges

USPS recently announced the cancellation of any peak season surcharges during the upcoming holiday period, ending the practice that began in 2020. The CEO of USPS stated, "We are prepared to handle any peak season volume. We will not add any additional surcharges for our customers during this year's peak season. Shipping and handling during the holiday season remains the most affordable with us."

2 JD Logistics Opens "Shenzhen-Ho Chi Minh City" International Cargo Flight

Recently, a JD Logistics B737-800BCF freighter smoothly landed at Ho Chi Minh City, Vietnam from Shenzhen Airport and then returned to Shenzhen after completing cargo loading and unloading. This marked the official opening of the "Shenzhen-Ho Chi Minh City" international cargo flight by JD Logistics. The "Shenzhen-Ho Chi Minh" route will be regularly operated by JD Logistics freighters and will mainly handle the cross-border e-commerce express shipments in southern China, helping small and medium cross-border e-commerce businesses achieve efficient logistics fulfillment.

3 Maersk, APM Terminals, and Oman Airports Establish Sea-Air Logistics PartnershipIt is reported that a new sea-to-air logistics solution has been launched by Salalah port managed by Maersk and APM Terminals, in collaboration with the Oman Airports Management Company. This multimodal transport cooperation aims to reduce transportation time by about 20-40% compared to traditional East-West maritime routes, and can save 10-20% of costs compared to pure air transport solutions.

# Industry Policy and Data #

1. E-commerce Sales in Latin America to Grow by 14.3% YoY in 2023

According to reports, with the explosive growth of Internet shopping in Latin America in recent years, the Latin American e-commerce market has gradually become one of the leading markets for global e-commerce growth. According to forecasts by Insider Intelligence, e-commerce sales in the Latin American region are expected to grow by 14.3% year-on-year in 2023, and are expected to break through the $200 billion mark successfully by 2026. E-commerce sales in the region are also expected to grow rapidly at a double-digit annual rate before 2026. (By Whale Network)

2. August Rankings of E-commerce Websites in Italy: Temu Returns to Top Ten, Amazon Ranks First

Recently, the market research company Casaleggio Associati updated the traffic data and rankings for e-commerce platforms in Italy for August this year. According to the rankings, in August this year, Amazon became the most visited e-commerce website in Italy, with a visit volume exceeding 45.48 million. Following Amazon is Booking.com, with a visit volume of approximately 14.17 million. Ranked third is Subito, with a total visit number exceeding 14.01 million. eBay ranked fourth with a visit volume of over 11.86 million, followed by Trenitalia, Leroy Merlin, Temu, Apple Store, Ryanair, and IKEA.

3. Germany's "Live Shopping Study": 91% of Consumers Spend Over 50 Euros in Live Streams

Recently, Simon-Kucher, in cooperation with the market research firm Clickworker, released a "Live Shopping Study" that reveals the current status of the live shopping market in Germany and consumer preferences and purchasing behavior. The study shows that three-quarters of German consumers are aware of live shopping, and 12% of them have made purchases in live shopping events.

91% of German consumers spend over 50 Euros in live streams, and 50% of consumers spend over 100 Euros. In addition, consumers in different age groups have their own shopping preferences. People aged 54 and above make the most purchases of cosmetics and personal care products in live shopping events, while those aged 18 to 34 are more willing to invest in fashion clothing.

The report also shows that close to half of German consumers hold a skeptical attitude towards live shopping.

4. Brazil Ranks Third Globally in the Pet Category Market, Accounting for 4.95% of the Global Market

According to data from Abinpet (the Brazilian Pet Products Industry Association), Brazil ranks third in the global pet category market, accounting for 4.95% of the global market, following the United States (43.7%) and China (8.7%). Sales of pet products in the segmented market are expected to grow by 10.6% in 2023, reaching 46.42 billion reais. Over 50% of Brazilian households have dogs or cats, with approximately 30% increasing during the pandemic. A study by Adventures shows that during the pandemic, the pet market was one of the fastest-growing markets in Brazil, with a 108% increase in purchases. (By Seller's Home)

5. The Warehouse Robotics Market is Expected to Reach $15.8 Billion by 2030

According to data from market analysis firm Adroit Market Research, the compound annual growth rate of the global warehouse robotics market value is expected to be 15.81% from 2021 to 2030. In 2020, the global warehouse robotics market value was $44 billion, and it is expected to reach $15.793 billion by 2030. The booming development of e-commerce has led to a high demand for robots and warehouse automation. In addition to developed countries, emerging markets are also beginning to invest more in automation to optimize energy consumption and minimize waste in warehouse operations.