Looking back at 2024, the landscape of cross-border e-commerce was marked by an influx of new players, as established and emerging forces converged on the path to global expansion. Simultaneously, the "Four Little Dragons of Going Overseas" ignited a new wave of semi-managed services, intensifying competition among platforms and jointly propelling the industry towards unprecedented horizons.

Amidst industry shifts and evolving trends, cross-border e-commerce in 2024 advanced amidst transformation. From the era of bulk shipments and unbridled growth to the new journey of brand cultivation through intensive strategies, waves of low-price competition and brand upgrading alternated. Sellers fiercely guarded their existing markets in the red ocean while vying for new growth opportunities in the blue ocean. So, what were the common perspectives and key words that defined the cross-border e-commerce industry in 2024?

01. New Mode: The Ascendancy of Semi-managed Services

The first keyword for cross-border e-commerce in 2024 was the rise of the new mode. While 2023 was hailed as the inaugural year of the "fully managed" model, 2024 saw the semi-managed model take center stage.

The semi-managed model stands in contrast to the fully managed one. In the fully managed model, e-commerce platforms assume full responsibility for store operations, including warehousing, delivery, and after-sales services, while merchants focus solely on product supply. Conversely, the semi-managed model grants merchants greater autonomy in operations, with the platform only handling warehousing and logistics, offering a flexible service that bridges the gap between fully managed and self-operated models. It's important to note that the rules of the semi-managed mode vary across different cross-border e-commerce platforms, with discrepancies in product pricing and operational practices.

Initially, TEMU disrupted the market by popularizing the fully managed model in 2023. Following suit, other members of the "Four Little Dragons of Going Overseas" – SHEIN, AliExpress, and TikTok Shop – adopted this model, making it a standard feature across major cross-border e-commerce platforms. The fully managed model significantly lowered the barrier to entry for cross-border merchants, offering one-stop services encompassing store operations, warehousing, logistics, and after-sales support, effectively turning sellers into mere "suppliers".

TEMU leveraged the fully managed model to rapidly expand its territory, propelling Chinese industrial belts into global markets. However, some merchants who opted for this hands-off approach soon realized they had become mere supply channels, lacking both pricing and discursive power. Additionally, industry insiders pointed out that the fully managed model had certain limitations, primarily in terms of product categories and traffic acquisition.

Thus, the semi-managed model emerged, offering less management and greater flexibility. TEMU launched its semi-managed mode in March 2024, targeting merchants with established overseas warehouse logistics partnerships, overseas entities, and mature local fulfillment capabilities. These merchants could decide on warehousing and logistics solutions based on orders, streamlining product selection processes. Additionally, the platform continued to assist with marketing, promotion, and customer service.

SHEIN introduced its semi-managed mode in May 2024, with the United States as its initial market. Under this model, SHEIN sellers retained the autonomy to select products but were required to maintain local inventory and fulfill local deliveries. The platform provided operational support and exclusive in-station activity resources and traffic support for key categories, products, and new items.

02. New Markets: Continuously Exploring New Frontiers

The second keyword for cross-border e-commerce in 2024 was the pursuit of new markets. As competition intensified in the saturated European and American markets, e-commerce giants turned their gaze towards emerging territories.

The first was the adjacent Korean market. According to GlobalData, a global market research firm, the Korean e-commerce market exhibited rapid growth, with a market size of approximately $118 billion in 2024 and an average annual growth rate of 7.8%. This market size is projected to reach $151.3 billion by 2028.

The second was the niche South African market. TechCabal Insights reported that the African e-commerce market would grow by 105% within five years, from $55 billion in 2024 to $112.73 billion in 2029. Statista predicts that South Africa's e-commerce penetration rate will reach 22.27% in 2025, ranking first among African countries.

SHEIN, which entered South Africa in 2020, rapidly expanded through social marketing and first-purchase discount subsidies. By 2024, SHEIN had become the largest online retailer for women's clothing in South Africa, holding a 35% market share.

Temu launched its South African site in January 2024, deploying localized marketing strategies tailored to the South African market, which swiftly enhanced the brand's visibility and influence. According to Boston Consulting Group (BCG) survey data, Temu's website traffic surged since January 2024, achieving a compound annual growth rate of 200% by September 2024.

In the traditional European and American markets, 2024 was another year dominated by price wars in cross-border e-commerce. Led by the Four Little Dragons of Going Overseas, including TEMU, Amazon followed suit, with platforms competing fiercely on price, igniting a battle for the budget-conscious consumer segment.

Take the "Billion Subsidy War" during the Black Friday sales period as an example. TEMU launched promotional activities such as discounts of up to 90% and vouchers. TikTokShop offered a maximum subsidy of $30 per item in direct discount subsidies. SHEIN highlighted "more than 300,000 popular items on sale with limited-time free shipping," while AliExpress provided discounts of 90% and "billion subsidies".

03. New Technology: Embracing AI in Full Force

The third keyword for cross-border e-commerce in 2024 was new technology. In the AI era, cross-border e-commerce is undergoing revolutionary changes. On one hand, the advent of AI makes it easier to obtain and analyze consumer behavior patterns and product preferences. Sellers can now collect consumer feedback in real-time, respond more quickly, and make timely product optimizations and strategy adjustments. Simultaneously, customized e-commerce services tailored to the personalized needs of different consumer groups are gradually becoming a reality.

On the other hand, multimodal AI enhances people's understanding and cognitive abilities of the world, assisting cross-border merchants in mitigating compliance issues.

Numerous cross-border e-commerce giants, such as Amazon and Alibaba, have launched a suite of AI tools tailored for cross-border merchants. These tools cover various aspects, including text translation, keyword extraction, product detail page writing, and market research, providing merchants with comprehensive and one-stop intelligent services. According to data disclosed by Alibaba.com, over 60,000 cross-border merchants have actively embraced AI technology.

In the past, many Chinese sellers encountered compliance issues when entering overseas markets due to unfamiliarity with local regulations. Regarding trademarks alone, many brands registered overseas trademarks through irregular law firms, leading to trademark infringement, invalidation, and other compliance issues, resulting in the suspension of their Amazon store rights. Therefore, in addition to launching the "Amazon Brand Naming Star," Amazon also offers the IP accelerator service to help sellers apply for trademarks in compliance.

Currently, with the continuous iteration of AI technology, its application scenarios in the cross-border e-commerce field are becoming increasingly widespread. Its role extends beyond simple tool applications, playing a pivotal part in intelligent decision-making and market trend prediction.

04. Conclusion: Cross-border E-commerce: An Industry That Thrives on Innovation

In summary, 2024 marked a year of transformation for cross-border e-commerce, with new modes, new markets, and new technologies serving as key words for its development. The rise of the semi-managed mode offered merchants more flexible and autonomous operational choices, addressing the shortcomings of the fully managed model. The relentless exploration of new markets enabled platforms to tap into new growth opportunities. The full embrace of AI technology provided merchants with comprehensive intelligent services, helping them better adapt to market changes, meet consumer needs, and navigate compliance issues.

This year, the cross-border e-commerce industry continued to advance through exploration and practice. Despite facing numerous challenges, it demonstrated robust vitality and potential. Looking ahead, with continuous technological innovation, further market expansion, and the refinement of models, cross-border e-commerce is poised to usher in broader development spaces, injecting new impetus into global trade and steering the industry towards more efficient, intelligent, and diversified development.

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