Last year, a refreshing "anti-overwork" trend swept through the cross-border e-commerce sector, with numerous companies following industry leaders in adopting a two-day weekend policy to attract top talent. However, this trend proved short-lived. Recently, the industry appears to have regressed into its old patterns of excessive competition and overwork.
The deterioration is evident in several concerning developments: a major seller reportedly suspended operations, another implemented a controversial policy requiring employees to "donate" 300 yuan for failing to log 30 overtime hours monthly, and several firms abruptly canceled their two-day weekend policies. These practices have cast a shadow over workplace conditions in the sector.
Operational Suspensions: A Sign of Industry Consolidation?
A recent notice from a prominent Shenzhen-based cross-border seller announcing a six-month operational suspension sent shockwaves through the industry. The company cited "drastic changes in the cross-border e-commerce landscape and persistent pandemic impacts" as reasons for the decision, effective September 2022.
Insiders revealed that this seller, once a leader in bulk product listings, had aggressively stocked inventory during the 2020 e-commerce boom. However, abrupt policy changes by Amazon led to widespread store suspensions, leaving the company with unsold inventory and financial distress. The firm also faced lawsuits from suppliers over unpaid debts.
The downfall of this former industry giant serves as a cautionary tale about the risks of failing to adapt to rapid market changes.
"Overtime Donations": Questionable Management Practices
While operational suspensions reflect broader industry shifts, a Shenzhen company's "overtime donation" policy highlights problematic labor practices. The firm mandated 30 monthly overtime hours, with a 300-yuan "voluntary donation" penalty for non-compliance—despite publicly claiming to have no compulsory overtime requirements on recruitment platforms.
The policy, later defended as an "internal matter," likely violates Chinese labor laws. Many employees argue that extended work hours don't equate to productivity, and that such forced overtime undermines morale while providing no real business value.
Rescinding Two-Day Weekends: A Cost-Cutting Measure?
For many professionals, weekends and competitive salaries represent ideal working conditions. Yet economic realities often force compromises. Some companies now view single-day weekends as unavoidable.
One major seller reinstated single-day weekends less than a year after adopting a two-day policy, while also cutting year-end bonuses and subsidies. The company cited "strategic transformation needs" to enhance R&D efficiency. Many employees resigned over these changes, with critics alleging the moves were designed to prompt voluntary departures.
Strategies for Cross-Border Sellers
Facing unprecedented challenges in 2022, cross-border sellers must adapt to survive. Key strategies include:
- Precision Operations: Shift from bulk listings to targeted strategies, optimizing products and services through market research.
- Channel Diversification: Reduce reliance on single platforms by expanding sales channels.
- Brand Development: Build proprietary brands to increase customer loyalty and differentiate from competitors.
- Risk Management: Monitor platform policy changes closely to mitigate disruptions.
- Adaptability: Stay agile to navigate the sector's rapid evolution.
Despite current difficulties, the upcoming peak season offers opportunities for recovery. With careful planning and resilience, sellers can overcome these challenges and achieve sustainable growth.