A sudden collapse in the cross-border logistics sector has caught e-commerce sellers off guard. If logistics serves as the lifeline of cross-border e-commerce, then the breaking of this lifeline may lead sellers into an unexpected crisis. The recent downfall of the major freight forwarding platform "Cross-Border Good Luck" has left numerous sellers in a precarious position.
The Fall of the "Didi of Logistics" Leaves Sellers Stranded
Once hailed as the "Didi of logistics" for its innovative operational model, "Cross-Border Good Luck" connected sellers' shipping needs with logistics providers through an efficient platform. The service attracted thousands of logistics companies and small-to-medium cross-border e-commerce sellers. However, the platform's abrupt shutdown in late May, accompanied by reports of executives going missing, left sellers unable to access their accounts or recover prepaid shipping fees.
Compounding the crisis, some logistics providers, having not received payments from the platform, began holding sellers' goods hostage, demanding triple the original shipping fees for release. The situation has sparked widespread frustration across the industry.
Warning Signs Ignored as Internal Crisis Brewed
Internal sources reveal that "Cross-Border Good Luck" had shown signs of financial distress prior to its collapse. On May 28, the company held an emergency meeting, citing operational difficulties as grounds for terminating employee contracts while offering only one month's salary as compensation. Currently, more than 30 former employees are preparing collective arbitration to seek fair compensation.
Public records indicate the company, founded in February 2021, had been involved in multiple legal disputes including commercial contract violations. It had also been listed as a debtor in several cases, with total claims exceeding one million yuan. These red flags suggest the collapse resulted from long-standing operational issues rather than a sudden event.
The platform's innovative model allowed sellers to input shipping details and receive instant quotes, with logistics providers then bidding for the jobs. At its peak, it hosted over 1,000 service providers and served approximately 36,000 small-to-medium sellers. The sudden platform failure has now left many of these sellers facing significant financial losses.
Exorbitant Ransom Fees Create Impossible Choices
In the aftermath, many sellers found their goods stranded in transit, facing ransom demands from logistics providers. One seller reported being asked to repay shipping fees plus a 20 yuan per kilogram redemption charge - a total exceeding the goods' actual value. Faced with this impossible choice, the seller reluctantly abandoned the shipment.
With numerous logistics providers operating through the platform, many who hadn't received payments resorted to holding goods hostage. For sellers of low-value items, abandonment became the only viable option. Those dealing in high-value goods faced the painful choice of paying inflated fees, taxes, and penalties to recover their merchandise.
Industry Risks Mount: How Can Sellers Protect Themselves?
The "Cross-Border Good Luck" incident serves as another warning about the risks in cross-border logistics. As similar collapses become more frequent, how can e-commerce sellers safeguard their interests?
- Diversify logistics partnerships: Avoid over-reliance on single platforms by maintaining relationships with multiple providers.
- Document all transactions: Preserve contracts, payment records, and communications as evidence for potential disputes.
- Beware of too-good-to-be-true offers: Exercise caution with providers offering suspiciously low prices or extended payment terms.
- Conduct due diligence: Research providers' financial health, legal history, and ownership stability before engagement.
The collapse underscores the need for both sellers and regulators to address systemic vulnerabilities in cross-border e-commerce logistics. While efficiency and profitability remain crucial, robust risk management and partner vetting have become essential for sustainable operations in this volatile sector.