China Cross Border eCommerce – Airport to Europe in 3 to 5 days

Chinese exports are on the rise, and heyworld is celebrating its new airport to door product from China to Europe. Together with Lufthansa Cargo, our mother company, we envision transforming Frankfurt Airport as a  gateway hub for European eCommerce. By proactively driving forward the expansion of the eCommerce business at Frankfurt Airport, we rely on speed and resilience, offering a holistic solution for shipping, customs clearance, and onward transport of eCommerce shipments.  According to a report released in July 2023 by China’s General Administration of Customs, the value of China’s cross-border eCommerce imports and exports surpassed 2 trillion yuan (about 280.55 billion U.S. dollars) for the first time in 2022, reaching 2.1 trillion yuan and representing an increase of 7.1 percent compared with 2021. For Chinese small and medium-sized businesses, cross-border eCommerce offers a very advantageous new global expansion path.

Key Messages

 

  • The value of China’s cross-border eCommerce imports and exports surpassed 2 trillion yuan (about 280.55 billion U.S. dollars) for the first time in 2022, reaching 2.1 trillion yuan and representing an increase of 7.1 percent compared with 2021.
  • China approved the development of extensive pilot zones for cross-border eCommerce in 33 further cities and regions. This expansion is part of the plan to increase foreign trade, being the 7th batch of pilot areas, bringing them to 165 zones.
  • China’s cross-border eCommerce snowballed in the first half of 2023, jumping 16% year on year to 1.1 trillion yuan (US$153.37 billion), out of which exports account for 821 billion yuan (US$113.30 billion), 19.9% YOY increase while imports account for 276 billion yuan (US$38.10 billion), a 5.7% YOY increase.
  • heyworld is offering airport-to-door services from China to Europe in 3-5 days. Our modular service, from export declaration, airfreight, and import customs clearance to last-mile delivery gives us a competitive advantage in the market.
  • We take pride in delivering its customers excellent compliance and data quality with customs authorities.  
  • Transit at Frankfurt Airport for eCommerce shipments is competitive as we are well integrated into Lufthansa’s handling process, thus speeding us all processes.

 

In the past few years, Chinese companies used cross-border eCommerce as a way to expand internationally which have shown better elasticity and experience within the global market. Chinese exporters who are part of different business clusters have proven to gain more research and development knowledge, learn how to deal with their brand internationally, or better innovate their products according to the market specifics they want to serve.

To support the boosting exports from China, the authorities have created support policies by increasing the effectiveness of customs clearance, developing and growing overseas warehouses, enhancing logistics infrastructure, and encouraging the establishment of comprehensive, high-quality pilot zones for cross-border eCommerce. According to China Daily Publication, in November 2022, China approved the development of extensive pilot zones for cross-border eCommerce in 33 further cities and regions. This expansion is part of the plan to increase foreign trade, being the 7th batch of pilot areas, bringing them to 165 zones. By implementing and encouraging the policies to develop cross-border eCommerce exports, the Chinese government has encouraged local companies to set up global warehouses and create cross-border eCommerce pilot zones in most Tier 4 cities or higher to ease the export of goods. In this way, Chinese retailers can send significant quantities of merchants, locate inventory closer to customers, and provide faster and more affordable international shipping.

Which are other factors contributing to China cross-border eCommerce exports?

China’s cross-border eCommerce snowballed in the first half of 2023, jumping 16% year on year to 1.1 trillion yuan (US$153.37 billion), out of which exports account for 821 billion yuan (US$113.30 billion), 19.9% YOY increase while imports account for 276 billion yuan (US$38.10 billion), a 5.7% YOY increase. The graphic below highlights the trade volume of China’s export cross-border eCommerce players from 2012 to 2022, in trillion yuan.

Trade volume of China's export cross-border e-commerce players from 2012 to 2022 (in trillion yuan)

Fig 1. The trade volume of China’s export cross-border e-commerce players from 2012 to 2022 (in trillion yuan)

Source: Statista, 2023, heyworld concept

An important factor driving expansion is price competitiveness. China’s industrial sector fixed-asset investments have been growing steadily, supporting the country’s high output capacity. Chinese exporters have a price advantage over many other nations due to their low inflation rate and excellent industrial efficiency, particularly when they sell consumer products directly to foreign purchasers without needing an intermediary.

 

“I am very optimistic about China’s cross-border eCommerce development prospects. According to the General Administration of Customs of China, China’s cross-border eCommerce exports grew by 7.1% in 2022 compared to 2021, accounting for 4.9% of the total value of the country’s export. Cross-border eCommerce has injected new energy into China’s foreign trade development and received great government attention and support. We expect cross-border eCommerce to continue its growth in the coming years.”

– Anakin Yeung, Sales Manager heyworld APAC Region

China’s B2C cross-border eCommerce export industry reached around 2.74 trillion yuan in 2021, up from roughly 2.29 trillion yuan the year before. Platform-based vendors were responsible for almost 2.04 trillion yuan of the value of China’s B2C online export sector that year.. The Chinese government strongly encourages businesses to engage in cross-border eCommerce and prioritizes the future growth of this industry. China, depending on its distinct advantages of robust manufacturing capability, gradually shifted from selling commodities to building brands. The term “made in China” no longer denotes low-quality products.

heyworld is integrated into the Lufthansa handling process, specializing in B2C delivery, and offering airport-to-door services from China to Europe in 3-5 days. Our modular service, from export declaration, airfreight, and import customs clearance to last-mile delivery gives us a competitive advantage in the market. We are connected to all service providers via API; customers will be able to receive tracking on the parcel level, so as no relabelling is needed!

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About heyworld.

heyworld GmbH was established in 2019, as a 100% subsidiary of Lufthansa Cargo, specialized in cross-border, eCommerce logistics. heyworld translates airfreight processes and standards into the eCommerce world (ex. conversion of chargeable weight into a parcel level-based pricing scheme). We combine airfreight, eCommerce, and logistics know-how, working with a modular service, from first mile, middle mile (air freight) to end mile. We are well Integrated into Lufthansa handling process, and connected to all service providers and process steps via API integration.

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