Cross border E-commerce Weekly Report: TikTok Shop launches new policy of no reason returns, Amazon accelerates its layout in the Indian market

The cross-border e-commerce market has been surging recently, with platforms like TikTok, Amazon, and Temu frequently adjusting their strategies. Let’s take a look at the latest moves from these giants.

TikTok

1. Pilot of Local Lifestyle Services in Southeast Asia

TikTok is testing local lifestyle services in Indonesia and Thailand, bringing offline merchant services online through short videos and livestreams, similar to the models of Meituan and Ele.me. This attempt shows that TikTok not only wants a share of the e-commerce market, but also aims to deeply integrate into the daily lives of local consumers, further increasing platform stickiness.

2. Consumer Spending Surpasses $15 Billion

According to the latest data, TikTok’s global consumer spending has exceeded $15 billion, making it the third highest non-gaming app after YouTube and Tinder. The growth in this figure demonstrates TikTok’s strong ability to attract user payments, especially in terms of in-app purchases on mobile devices.

3. New No-Reason Return Policy Launched in Southeast Asia

Starting August 27, TikTok has launched a no-reason return policy for “no longer needed” items in the Southeast Asian market. Covering cross-border orders in Malaysia, the Philippines, Singapore, Thailand, and Vietnam, buyers who change their minds about purchased goods can apply for returns under certain conditions. This policy not only helps improve the shopping experience but also reduces consumer risk and enhances trust in the platform.

Amazon

1. Termination of VAT Integration Service

Amazon has announced that it will terminate its VAT integration service on October 31, 2024, meaning that European sellers currently relying on this service will need to find new tax compliance solutions. This move may be intended to reduce Amazon’s operational burden, but for sellers, smoothly transitioning to new tax service providers will be a challenge.

2. Accelerating Layout in the Indian Market

Amazon plans to enter India’s quick commerce market in early 2025, competing directly with local players BlinkIt and Zepto. This shows Amazon’s long-term optimism about the Indian market, especially its close attention to the continued growth in demand for instant delivery. By strengthening its Amazon Fresh service and exploring the possibility of acquiring Swiggy Instamart, Amazon hopes to establish a firm foothold in this key market.

3. Expanding Rural Logistics Network

To improve delivery efficiency, Amazon is developing small businesses into local delivery hubs through its HubDelivery program, especially to cover remote rural areas. The program aims to improve parcel delivery experiences in remote regions, allowing more consumers to enjoy fast and convenient logistics services.

Temu

Approaching Profitability, Positive Outlook in the US Market

Temu is close to achieving EBITDA profitability in the US market. Since last year, Temu has gradually moved towards profitability by cutting advertising spending and focusing on increasing the activity and purchase frequency of existing users. The development of this cross-border e-commerce platform, incubated by Pinduoduo, in the US market shows that Chinese e-commerce companies have the potential to succeed overseas, as long as they can find suitable localized operation strategies.

On the fiercely competitive battlefield of cross-border e-commerce, platforms like TikTok, Amazon, and Temu are constantly adjusting their strategies to adapt to market changes and seize new opportunities. From TikTok’s no-reason return policy, to Amazon’s accelerated entry into the Indian market, and Temu’s profitability prospects in the US, every step shows these giants’ strategic layouts in different markets. For companies seeking success in cross-border e-commerce, keeping up with these trends and timely adjusting their own strategies is the key to victory.