According to data from the General Administration of Customs of China, in 2023, the total value of China’s goods trade exports reached 23.77 trillion yuan, an increase of 0.6%. Among this, cross-border e-commerce exports amounted to 1.83 trillion yuan, growing by 19.6%. The strong growth of cross-border e-commerce exports is particularly evident in the Southeast Asian market. Data shows that the Southeast Asian e-commerce market reached 113.9 billion USD in 2023, an 18.6% increase compared to 2022.

This is partly due to the rise of platforms like TEMU, TikTok Shop, and SHEIN, which have encouraged Chinese businesses and brands to transform into cross-border e-commerce. On the other hand, it is also attributed to the improvement of cross-border logistics infrastructure and the reduction in logistics costs. In the process of seeking to go overseas, optimizing cost structure, strengthening the stability and flexibility of the supply chain, and enhancing user experience are critical issues for businesses and brands to consider in this intense competition.

Recently, the WuseTu Supply Chain Platform discussed the current market situation and competitive landscape of cross-border e-commerce in Southeast Asia, as well as the challenges and pain points in the supply chain during the overseas expansion process, and how it, as an experienced platform technology company connecting the supply chain, can provide solutions related to transportation, customs clearance, cross-border warehousing, and logistics.

The Southeast Asian e-commerce market, with its large market size and growth potential, is attracting the attention of global e-commerce giants. The current market size has reached the hundred billion USD level, and the improvement of logistics infrastructure and reduction of logistics costs, coupled with the price sensitivity of Southeast Asian consumers, are jointly driving the vigorous development of this market. As e-commerce platforms shift from full-managed to semi-managed models, supply chain management becomes more complex. In the full-managed model, sellers store their goods in domestic warehouses, with the platform handling all logistics steps; in the semi-managed model, sellers must send products to overseas warehouses, with the platform handling subsequent delivery.

This shift presents new challenges for sellers in supply chain management. “According to WuseTu Supply Chain Platform, in the face of challenges such as the timeliness of cross-border logistics, warehouse security, and costs, localized overseas warehouse providers in Southeast Asia have offered a series of solutions. Through digital calculation systems, they predict customers’ outbound volumes, reasonably allocate manpower and resources, and ensure timely dispatch of goods.

At the same time, they provide safe and reliable warehouse services, offering professional warehousing management solutions for different types of products, such as expiration date management, fragile goods management, batch management, serial number management, etc.

For the potential risks of the Southeast Asian market, it is recommended that sellers thoroughly understand the policies of local countries, assess the positioning and competitiveness of products in the local market, and treat cross-border e-commerce as international trade. “Those who can ultimately survive in the overseas market are the brands that deeply understand local laws, regulations, and consumer demands.”