E-COMMERCE

By FedEx | June 13, 2025

Cross-border e-commerce in China is evolving fast as smart logistics and regional supply chains open new growth opportunities for global businesses.

• China’s cross-border e-commerce trade reached RMB 2.63 trillion in 2024, with second- and third-tier cities accounting for 7 of the top 10 exporting hubs.
• Smart logistics and bulk shipping models are transforming delivery speed and cost-efficiency, especially for temperature-sensitive goods using cold-chain logistics.
• Cities like Puning and Qingdao are shifting from traditional manufacturing to high-demand exports such as textiles, beauty products, and clean energy equipment.

Cross-border e-commerce in China is experiencing a powerful shift. Once dominated by first-tier cities like Shanghai and Beijing, the momentum has now moved to regional second- and third-tier cities – which include many regional provincial capitals, autonomous region capitals, sub-provincial cities, and large prefectural-level cities with significant regional influence.

These emerging hubs are redefining global trade routes with the help of smart logistics solutions and a rapidly maturing supply chain in China. Businesses tapping into this transformation are discovering new pathways for faster, more efficient international growth.

Why cross-border e-commerce in China is booming

Despite macroeconomic pressures, the cross-border e-commerce sector in China has shown remarkable resilience in 2024. Global consumers are increasingly purchasing directly from overseas sellers, driven by rising demand for better product variety and value.

North America and Europe continue to lead the way, with projected compound annual growth rates (CAGR) of 28.7% and 29.0% from 2024 to 2031 respectively, driven by their strong internet infrastructure, mature e-commerce landscape, and consumer demands.

However, emerging markets in Asia-Pacific and Latin America are quickly catching up. These regions reported cross-border e-commerce market sizes of USD 182 billion and USD 39.5 billion respectively, fueled by expanding internet access and a growing middle class eager for international brands.

Against this backdrop, China stands out – not only as a manufacturing powerhouse but also as a top player in cross-border e-commerce.

The rise of second- and third-tier cities in China's export boom

In 2024, China’s cross-border e-commerce imports and exports hit RMB 2.63 trillion, growing 10.8% year-over-year. Much of this surge is being led by regional cities – second- and third-tier hubs that now account for seven of China’s top 10 cities in cross-border trade activity.

These cities have spent decades building their strong competitive advantages, thanks to lower labor costs, well-established manufacturing bases, and highly diversified industrial clusters. These strengths have positioned them prominently in global trade, particularly in traditional manufacturing sectors such as textiles and apparel.

Cities like Puning in Guangdong province exemplify this success. In 2024 alone, Puning’s textile and clothing e-commerce transactions reached RMB 84 billion, with a 67% growth in cross-border exports.

The transformation is not just in scale but in sophistication. Today, manufacturers from cities in Zhejiang, Jiangsu, and Shandong provinces are upgrading production lines and product offerings to meet international demand.

From consumer electronics and pet supplies to outdoor gear and beauty products, the variety of exported goods is expanding rapidly – marking a new chapter in regional cities' export growth. By expanding their product offerings, manufacturers are accessing broader international markets, driving a more sustainable and scalable trade momentum.

Qingdao, for instance, a long-standing export hub in Shandong province once known for machinery and agricultural goods, now exports new energy vehicles, photovoltaic equipment, and energy storage systems. This shift shows how the supply chain in China is diversifying beyond its traditional roots.

Smart logistics in China fueling the e-commerce revolution

As e-commerce volumes grow, logistics providers are rethinking delivery models to match rising expectations. Two major trends are redefining logistics solutions in China: faster delivery times and bulk shipping.

Consumers today expect faster deliveries

More than 60% of e-commerce shoppers now expect their orders within two to three business days. To meet these demands, logistics firms are making substantial investments in smart logistics in China, especially in second- and third-tier cities that serve as e-commerce manufacturing and sourcing hubs.

Strategic initiatives include:

• Opening gateway facilities in regional cities
• Launching new international cargo flights to bypass congestion in first-tier hubs like Beijing and Shanghai, so that goods can move directly to global markets
• Enhancing cold-chain logistics in China for perishable and sensitive goods

In Kunming, tons of fresh flowers are shipped daily to Dubai via morning flights. During peak periods, orders are processed every five seconds on an online flower trading platform.

Bulk shipping: The new model for efficient cross-border trade

One of the most transformative innovations in cross-border e-commerce logistics is bulk shipping. Instead of shipping individual orders one by one, e-commerce sellers now consolidate orders into one bulk shipment for customs clearance and international delivery. Once the shipment reaches its destination, it's split for last-mile delivery.

Compared to the previous approach where each item required a separate shipping order and customs clearance, this new model reduces shipping costs, shortens delivery times, and streamlines customs processes by leveraging air freight services to consolidate dozens to hundreds of items from a single supplier or retailer into one bulk shipment.

FedEx, for example, supports bulk shipping through services like FedEx International Priority® Freight and FedEx International Economy® Freight. These offerings are ideal for e-commerce shipments over 68 kg – equivalent to about 150 pairs of sneakers or 500 T-shirts – helping businesses scale effectively.

Powering the next stage of e-commerce growth

As regional cities continue to lead export growth, cross-border e-commerce in China is becoming more agile, scalable, and competitive. Innovations in cold-chain logistics and smart logistics solutions are enabling faster deliveries, lower costs, and broader product variety. For businesses aiming to succeed in this evolving market, aligning with the right logistics strategies and providers is essential to unlock long-term global opportunities.