A sudden COVID-19 outbreak in Shanghai has created a ripple effect across cross-border e-commerce, disrupting previously stable logistics networks. What began as a local health crisis has now stranded shipments like beached vessels, leaving countless e-commerce sellers facing unprecedented operational challenges.
Port Congestion and Delivery Delays
Since March, Shanghai has reported over 73,000 positive COVID cases, with the rapid spread directly impacting local logistics operations. Satellite images circulating online show dense clusters of cargo ships anchored near Shanghai's ports, visually demonstrating the severe congestion.
The delays extend beyond maritime shipping. Many sellers report UPS international parcels dispatched on March 26 remain stuck in Shanghai. Facing urgent restocking needs, some merchants are now rerouting shipments through Xiamen or Shenzhen to bypass Shanghai's bottlenecks.
Regional Spread Compounds Logistics Risks
The situation worsened as infections spread to neighboring regions. Positive cases among truck drivers in Ningbo's Beilun District and Xiangshan County introduced new uncertainties into the already strained supply chain. As critical links in logistics networks, infected drivers directly reduce transport efficiency, exacerbating delays and port congestion.
Premium Shipping Services Affected
Even Matson's expedited CLX shipping service, known for reliable schedules between Shanghai/Ningbo and the U.S. West Coast, faces disruptions. With both cities as major outbreak zones, sellers relying on these routes are advised to advance inventory preparations to mitigate stockout risks.
Product Listing Challenges and Solutions
Beyond logistics, many sellers grapple with inconsistent product listing performance. Some listings maintain steady sales growth while others stagnate after initial success. Key factors include:
- Insufficient optimization: Failure to update keywords according to seasonal trends or market changes
- Negative reviews: Sudden increases in poor ratings and returns damage search rankings
- Competitive pressure: Rivals gaining sales volume can push listings down search results
- Inventory shortages: FBA stockouts lead to temporary delistings
Recommended countermeasures include continuous listing optimization, proactive customer service to address complaints, competitor analysis, and improved inventory planning.
Managing Return Rate Risks
Elevated return rates present another critical concern, potentially triggering platform penalties when exceeding 10%. For sellers with multiple SKUs, isolated high-return products may not risk account suspension unless concentrated among top sellers.
Strategies to reduce returns include offering partial refunds as alternatives to returns, waiving return requirements for low-value items, and enhancing product descriptions to set accurate expectations.
While the pandemic continues testing cross-border e-commerce resilience, adaptable sellers who optimize operations and mitigate risks may discover competitive advantages amidst the challenges.