As growth miracles fade, the cross-border e-commerce industry faces a harsh reality of layoffs, salary cuts, and even suspended operations. Once envied professionals in this field are now experiencing an unprecedented migration.
The End of Glory Days: Cost-Cutting Becomes the New Norm
Cross-border e-commerce was once considered a blue ocean market, attracting countless businesses and individuals who enjoyed its lucrative benefits. In Shenzhen, companies commonly operated on alternating six-day work weeks, with employees trading intense workloads for substantial incomes. Industry leaders like Shein, Anker, and Tomtop were pioneers in implementing two-day weekends, seen as symbols of industry progress. However, this prosperity proved short-lived as external factors rapidly cooled the sector.
The combination of global economic downturn, weakened demand, rising fuel costs, and currency fluctuations has created tremendous operational pressure. Many companies have reinstated six-day work weeks or resorted to extreme measures like layoffs and pay reductions. One major Guangzhou-based seller reportedly canceled two-day weekends while implementing mass layoffs affecting thousands, with compensation packages being paid in installments - raising concerns about cash flow stability. Job postings now typically offer salaries between $850-$1,300 for e-commerce operation positions, often with ambiguous vacation policies, while two-day weekends are prominently advertised as key benefits.
Platform Giants Feel the Pinch: Amazon's Downsizing Strategy
Not just sellers, but even industry titans like Amazon face significant challenges. Confronting declining performance, the e-commerce giant has initiated aggressive downsizing measures.
According to MWPVL estimates, Amazon has closed or canceled plans for 42 facilities totaling nearly 25 million square feet, while postponing another 21 locations covering approximately 28 million square feet. The company also announced plans to sublease at least 10 million square feet of warehouse space - a stark contrast to previous years' aggressive holiday season preparations. In Q2 alone, Amazon reduced its workforce by nearly 100,000 employees.
The closures primarily affect delivery stations, directly impacting numerous jobs. While Amazon promises to relocate affected workers to other facilities, specific transfer numbers remain unclear. Alongside logistics cost reductions, the company has tightened inventory management for sellers while reducing hourly staff through hiring freezes and stricter productivity standards. Balancing cost efficiency with labor relations presents a significant challenge.
Drastic Measures: Operational Suspensions Become Last Resort
Beyond layoffs, some major sellers have implemented operational suspensions as emergency measures. Last year, a prominent Shenzhen-based company issued notices placing R&D staff on six-month leave with only minimum wage payments - effectively forcing voluntary resignations.
This September saw another Shenzhen seller announce similar six-month operational suspensions due to financial difficulties, with employees required to return immediately if recalled. From account bans to geopolitical instability, sustained performance declines have made workforce reductions and cost-cutting inevitable.
New Platforms Emerge: Catalysts for Industry Transformation
Amid widespread industry struggles, emerging platforms like Temu - Pinduoduo's cross-border e-commerce venture - have shown remarkable growth. Since launching in North America, Temu has aggressively recruited professionals with e-commerce experience, even reportedly poaching Shein employees with premium offers.
However, these newcomers face significant challenges. Temu's ability to establish itself in competitive North American markets remains uncertain, as does the sustainability of its recruitment strategies. The industry's future continues to evolve unpredictably.
Surviving the Winter: Strategic Adaptation
The cross-border e-commerce sector is undergoing profound transformation. Companies must focus on profitability, streamline operations, and avoid reckless expansion that risks cash flow crises. Effective personnel management requires transparent systems with clear role expectations and incentive structures.
For professionals, continuous skill development and adaptability are crucial for navigating industry shifts and seizing new opportunities. As the market consolidation continues, only those who evolve with changing conditions will endure the current challenges and emerge prepared for future growth.