E-commerce freight forwarding, also known as cross-border e-commerce freight forwarding, refers to companies or institutions that provide international cargo transportation and logistics services for e-commerce sellers in the cross-border e-commerce sector.

An interesting point is that e-commerce freight forwarding has a unique N-level agent structure. This has been a double-edged sword, offering significant convenience for cross-border e-commerce in the past, but now also creating potential pitfalls for the industry.

During the early stages of industry development, these numerous and distinct levels provided a convenient transportation channel for smooth business operations. Each link in the chain had a clear source and destination, with each party only responsible for their immediate upstream and downstream partners.

However, influenced by the boom in cross-border e-commerce in recent years, a large number of freight forwarding companies entered the market in 2021. As the number of freight forwarders increased, market competition intensified. To survive in this competitive environment, many freight forwarders had to lower their prices to attract customers.

The significant decline in order volume for many small and medium-sized sellers directly impacted the logistics business. In this context, freight forwarders, in order to maintain their business volume, resorted to offering lower prices to gain market share. Consequently, the low-entry barrier characteristics led to a mix of different standards and qualifications among freight forwarders, resulting in inconsistent service quality becoming the norm.

While the harsh environment is one aspect, it is not the whole picture of the industry. From a technological perspective, the freight forwarding industry is still trending positively in many ways. With the rapid development of technological solutions, the industry is also facing numerous opportunities. For sellers, avoiding the temptation of low prices and opting for freight forwarders with legitimate qualifications not only supports the growth of reputable companies but also benefits the overall industry environment.