Cross-border e-commerce and Southeast Asia market prospect analysis: current situation and future

Driven by the wave of globalization, the cross-border e-commerce market is undergoing rapid changes. The above changes not only benefit from changes in consumers’ shopping habits, but are also closely related to the policies and market environments of various countries. Especially in the implementation process of cross-border e-commerce, the construction of overseas warehouses has gradually become a key element.

The importance and development of overseas warehouses

The main function of overseas warehouses is to carry out the storage and transportation of cross-border imported and exported goods. With the implementation of the new cross-border import policy, direct mail imports have gradually become mainstream, and overseas warehouses have also ushered in opportunities for development. According to incomplete statistics, there are currently more than 500 overseas warehouses established by Chinese companies, mainly concentrated in developed regions such as the United States and Europe, showing a rapid growth trend in the industry.

Enterprises in Guangdong, Fujian, Jiangsu, and Zhejiang are particularly active in setting up overseas warehouses. In 2015, the total number of domestic and foreign trade e-commerce orders was 1.6 billion, of which about 28.8 million came from overseas warehouses. Amazon’s survey shows that 70% of sellers mainly ship through overseas warehouses. This data further illustrates the important position of overseas warehouses in e-commerce operations.

Among the types of companies operating overseas warehouses, there are e-commerce platform companies, such as eBay Winit, Amazon FBA, etc., as well as large export sellers and traditional foreign trade companies. These companies use self-operated overseas warehouses or leases to reduce logistics pressure, improve distribution efficiency, and cater to market demand. At the same time, third-party logistics companies rely on their professional capabilities to focus on providing efficient logistics services to cross-border sellers, further promoting the expansion of overseas warehouse business.

The rise of Southeast Asia’s e-commerce market

At the same time, the Southeast Asian e-commerce market shows strong growth potential. The region’s economic development is in good shape, with its GDP ranking fourth in the world and its population ranking third, behind China and India. Especially in Indonesia, the population advantage is obvious and the market potential is huge. Southeast Asia has a high penetration rate of smartphones and a long time per capita online. These factors together form a strong foundation for e-commerce consumption.

Although the proportion of e-commerce sales in Southeast Asia in overall retail sales is still low, it is expected that by 2025, its market retail size will increase 20 times compared with 2015, exceeding US$100 billion, which is undoubtedly a cross-border E-commerce provides new growth points.

In summary

Cross-border e-commerce is inseparable from the development potential of the Southeast Asian market. With the continuous improvement of overseas warehouse technology and logistics systems, the operation model of cross-border e-commerce has become more flexible, providing more choices for e-commerce sellers. At the same time, the huge consumption potential of the Southeast Asian market has also opened a new window of opportunity for the further development of cross-border e-commerce. Faced with this market situation, relevant companies need to grasp development trends and actively meet challenges and opportunities.