Insights from Companies That Withdrew from Cross-Border E-Commerce in 2026

In an extensive survey conducted by Shopee Japan, which operates one of the largest e-commerce platforms in Southeast Asia and Taiwan, it was revealed that more than 90% of companies that have reduced or withdrawn from cross-border e-commerce (CBEC) experienced significant setbacks that could have been avoided with prior knowledge. This article will delve into the key findings from this survey, highlighting both the challenges faced and the strategic insights that can aid businesses contemplating a return to the international market.

Overview of the Survey

Conducted over two days in June 2026, the survey gathered responses from 112 individuals, including managers and executives who had firsthand experience with shrinking or completely exiting cross-border e-commerce operations. The findings present a stark portrayal of the hurdles those companies faced, coupled with their aspirations for renewed endeavors.

Lessons Learned from Mistakes

An overwhelming 90.2% of participants articulated that they had encountered avoidable pitfalls, primarily due to a lack of understanding prior to their foray into cross-border e-commerce. When asked about the reasons for their withdrawal:

- Regulatory and tax compliance issues emerged as the top concern, affecting 25.9% of respondents.
- Insufficient handling of currency risks followed closely at 20.5%, suggesting that economic factors can significantly hinder operations.

Respondents voiced that had they been better informed, they could have navigated these challenges more effectively. Notably, many attributed their struggles to unexpected logistics costs, which surpassed initial estimates for 62.4% of those surveyed, causing profitability issues.

Key Reasons for Withdrawal

When analyzing the reasons for retreat, responses pointed to:

- Regulatory compliance struggles: 25.9%
- Shortcomings in managing currency risk: 20.5%
- Underestimating logistics costs: 16.1%
- Incorrect assumptions regarding local market needs: 12.5%

These insights underscore a critical need for businesses to thoroughly research and understand local market dynamics and regulatory landscapes before attempting to enter new territories.

Intentions for a Re-Entry into the Market

Despite their struggles, a remarkable 91.9% expressed a willingness to make a comeback in the realm of cross-border e-commerce. The foremost consideration in their revival efforts is securing trustworthy local partnerships, a priority for 68.9% of respondents. This finding reinforces the vital role that local expertise plays in navigating new markets.

Essential Support Systems Needed

The survey further identified the areas where businesses required more support. The responses revealed a strong desire for services that offer:

- Comprehensive logistics and delivery support (58.0%)
- Insights into local market trends (45.5%)
- Assistance in connecting with local marketplaces (43.8%)

These services can bridge the knowledge gap and easing the operational burdens that deter potential entrants from launching successfully.

Recommendations for Future Ventures

When asked about the advice they would give to aspiring cross-border e-commerce entrants, about 60% recommended that new businesses start small and incrementally expand their operations. Furthermore, it was suggested to prioritize collaboration with industry specialists to ensure a smoother market entry process.

Participants emphasized the importance of not rushing to see immediate results and instead nurturing relationships with local partners to better comprehend market demands.

Conclusion

In conclusion, the survey by Shopee Japan reveals that while many companies experienced challenges in cross-border e-commerce, there remains a potent appetite for renewal and growth in this area. The key takeaway hinges upon the necessity for diligent planning, local partnerships, and logistical foresight. As the market continuously evolves, businesses must adapt their strategies accordingly and leverage the insights gathered from these experiences to thrive in the global arena. Shopee stands ready to support companies looking to navigate the intricacies of international e-commerce, ensuring they are better equipped for success in the future.

For more information or assistance, visit Shopee Japan.