Core Insights - The golden era of cross-border e-commerce, characterized by easy profits from information gaps and supply chain advantages, has ended, leading to a more competitive and complex market environment [1][2]. Challenges in Cross-Border E-Commerce Challenge 1: Product Selection - The focus has shifted from merely finding a product to creating value, as the concept of "blue ocean" products has nearly vanished due to increased transparency in global supply chains [4]. - The emergence of low-cost competitors like Temu and Shein has intensified price competition, making it difficult for small sellers without cost advantages [5]. - Sellers must now provide unique added value through brand storytelling, product design, and community services to stand out in a saturated market [6]. Challenge 2: Traffic Acquisition - The cost of acquiring traffic has skyrocketed, with click costs for ads on platforms like Amazon and Google increasing exponentially, leading to diminishing returns on ad spend [7]. - The rise of AI-driven advertising systems has reduced sellers' control over ad optimization, making it essential to produce high-quality content that resonates with both algorithms and target users [8][9]. Challenge 3: Logistics - Consumer expectations for fast delivery have escalated, making traditional slow shipping methods less competitive, while faster options like overseas warehouses come with high costs that erode profits [11]. - Sellers need to develop a flexible, multi-channel fulfillment network that balances cost and efficiency, requiring strong supply chain management and data forecasting capabilities [12]. Challenge 4: Compliance and Payment - The global compliance landscape is complex, with various tax and certification requirements that pose significant risks for sellers attempting to cut corners [13]. - Account security is a critical issue, with stringent checks by platforms and payment gateways making it essential for sellers to maintain a stable and reliable digital identity to avoid account suspensions [14][15]. Challenge 5: Localization - Simple translation of marketing materials from domestic markets often fails in international markets due to cultural differences [16]. - Successful localization requires a deep understanding of local lifestyles and values, necessitating significant investment in market research and potentially local teams [17]. Conclusion - The challenges in cross-border e-commerce are creating higher barriers to entry, which may eliminate less competitive sellers while providing a protective moat for those who can systematically address product selection, content creation, logistics, compliance, and localization [18][19].