Three Reasons of Fulfillment Centers Start a Business in Shenzhen

As a cross-border e-commerce entrepreneur, you will be surrounded by many choices when finding the warehouse address. However, you will take many detours on the way to your cheapest fulfillment service. What’s worse, some Amazon sellers have been very confused about global ecommerce fulfillment owing to the Amazon warehouse fire and COVID-19.

To tell you the truth, Shenzhen warehouse plays an inportant role in the international orfer fulfillment. A latest study concerning Chinese warehouse location indicated that 75% warehouses come from Shenzhen. Here we have summarized three reasons as shown below:

As you can check in Google Maps, Shenzhen is near the international parcel processing centre——Hongkong, which provides more convenience for picking, packing and shipping. Take Amazon ePacket tracking as an example, Shenzhen warehouse can sent the items directly if your customer has ordered successfully from your webstore. That is to say, you don’t need to manage your own warehouse or distribution center.

Shenzhen is the birthplace of China’s reform and opening up, where many foreign trade enterprises and drop-shippers had been created. So they have more experience in the field of warehousing and shipping for e-commerce, and it is hard to find disorderly shipping and wrong delivery. In this way, you can reduce business risk and increase customer satisfacton.

During COVID-19 pandemic, the majority of e-commerce sellers want continuous selling on AliExpress, eBay and Amazon. Therefore, it is essential to reduce the chance of infection with COVID-19, whether it is warehouse or transportation staff. The number of people diagnosed in Shenzhen is cleared on May 21. Additionally, the government insists on strict pandemic prevention work, requiring everyone in Shenzhen to measure body temperature every day, especially warehouses and catering staff, mask wearing and hand washing are indispensable work.

All in all, you can get a fully automated with less money and time if you choose the most suitable order fulfillment center, and Shenzhen is a competitive choice.

Customer Retention: Repeat Purchase Campaign

Want to strat a business, and gather those share the same idea with you?

Not all customers are alike. Even if all of them have one thing in common—the fact they bought from you—that doesn’t mean you should treat them the same way. If you treat all your customers the same way, you’re likely to send them irrelevant emails, making them less interested in becoming loyal customers.

Tell your repeat purchasers, which are your caring listener, your stories about the founding of the business, or the coupon for them to continue the buying from you.

How do you extract more out of an existing customer? According to Adobe’s recent study, existing customers are responsible for creating 40% of revenue for an ECommerce store. Acquiring a new customer will be 5 times more expensive than getting a conversion from an existing one. However, increasing customer retention rate in the e-commerce industry by 5% can increase your profitability from 25% to 95%!

Your existing customers are familiar with your brand and your product, which makes them theoretically easier to convert compared to acquiring a new customer. Based on certain triggers derived from user behavior, you can create tailored campaigns with an incentive that will drive up the perceived value of the offer.

Unless the geography or demographics of your customers affect your e-commerce sales, one of the best ways to segment your customer list is by using engagement and transactional attributes based on their past behavior.

3 Signals on Cross-border E-commerce Seen from the CIIE

On November 5, the second China International Import Expo (CIIE) opened in Shanghai. According to the data, more than 3000 enterprises from more than 150 countries and regions participated in the exhibition, and the number of participating countries and enterprises exceeded the first one. Meanwhile, T-Mall Global, Jingdong Global, VipShop International, Koala Haigou, Suning Global Outsourcing, Beibei, Yunji, Meidun Mom and other cross-border importer and e-commerce platforms have appeared in the Expo.

According to the monitoring of e-commerce large database, in 2018, the transaction scale of import cross-border e-commerce industry reached 1900 billion yuan (including B2B, B2C, C2C and o2o modes), an increases of 26.66% year on year. Since 2001, the transaction scale of import cross-border e-commerce industry has maintained continuous growth.

Release positive signals for cross-border e-commerce

The second China international cross-border e-commerce development summit, and the Cross-border E-commerce promotion trade development summit will be held during the Expo. Cross-border e-commerce has become a powerful growth point for the development of China’s foreign trade. With the introduction of the e-commerce law and new policies on cross-border e-commerce, the gradually expanded scope of application of import policies, and the continuous increase of domestic demand, cross-border e-commerce will usher in a new round of quality improvement and upgrading.

Editor of Chinadivision found, at least 3 signals can be seen from the summits.

Signal 1: many international brands take Chinese cross-border e-commerce enterprises as a bridge to enter China, strengthen international resource cooperation, and give play to the advantages of local industrial clusters.

Signal 2: domestic cross-border e-commerce platforms seek new opportunities for cooperation, promote transnational cooperation and bring more trade opportunities.

Signal 3: accelerate the development of cross-border import market to meet diversified consumer demand.

Do You Think Paypal Has a Market in China

As a listed company of Nasdaq, Paypal is also the world’s leading third-party payment enterprise, covering more than 200 countries and regions around the world, with more than 286 million active payment accounts and supporting transactions in more than 100 currencies around the world.This news means that the global payment giant has officially entered the domestic market.Today, I want to talk about how this news will affect the situation of domestic third-party payment industry.Is there an opportunity for Paypal in China?




In the fourth quarter of 2018, China’s third-party payment is basically an oligopoly of alipay and tencent finance, which together account for more than 90% of the market.In fact, it is not hard to imagine that the core driving force of mobile payment in China comes from e-commerce and social platforms, such as taobao and WeChat Lucky Money, and these platforms have certain exclusivity. Therefore, relying on the advantages of platforms, it is easy to build a moat of its own and compress the space of other third-party payment enterprises.

At present, the market share of mobile payment in the domestic third-party payment market is getting higher and higher, which means the trend of offline development cannot be stopped. However, paypal, which has no mass base, should be more difficult to develop in this field. It can be seen that there is not much room for paypal to survive in China’s domestic third-party payment market under the current situation.

Cross-border payment is the breakthrough?

So where is paypal’s breakthrough in China?Perhaps the answer lies in cross-border payments.In 2018, 20% of paypal’s revenue came from cross-border business, and 20% of cross-border business came from the Chinese market, which shows the importance of the Chinese market in its overall business.

By the end of 2018, cross-border e-commerce had accounted for nearly one-third of total imports and exports.The growth rate has also maintained double-digit growth.In fact, there is another recent event that deserves our attention, which is alibaba’s $2 billion acquisition of netease koala, and alibaba’s integration of cross-border e-commerce, which shows that the giants attach great importance to this area.


It can be seen that the cross-border payment industry should be in a relatively prosperous stage, and the consumption ability of the customer group is relatively stronger.In the field of cross-border payment, paypal undoubtedly has its own advantages. It entered the field of international payment earlier than Chinese companies and has more experience and bigger market.

Paypal is still optimistic about the development of China’s third-party payment market.