Chinese e-commerce sellers face intense competition and shrinking margins, struggling to stay afloat

From Investing.com: 2024-07-11 21:37:43

Chinese e-commerce vendors are facing survival challenges with slowing sales growth and rising price pressure as they compete for cost-conscious customers on aggressive shopping platforms. Margins squeezed by big players like Alibaba and JD.com and small businesses, which account for 27% of retail with $1.65 trillion in annual sales, are struggling. Euromonitor data signals e-commerce growth shifting from double-digit to single digits amid cooling sales festival enthusiasm, like Singles Day. Vendors are bracing against burdensome return policies such as PDD’s 60% return rate. Companies like Inman are pushing back against platforms’ cost-shifting policies and high return rates, pointing to increased challenges for small retailers facing high return rates and operating costs. The e-commerce boom inception in2013 is stalling in the face of shrinking customer base and cutthroat competition, driving some vendors to sell at a loss on platforms like Pinduoduo to stay afloat. The industry faces tough times ahead as profits dwindle and operating costs rise, ushering in a new normal of intense competition and shrinking margins.



Read more at Investing.com: China’s relentless e-commerce price war leaves sellers struggling to make ends meet By Reuters