Guangdong Cross-Border E-Commerce: Tariff Pressures Spur Overseas Warehouse Boom as Sellers Target Russia and Latin America

With “tariffs” and “trade wars” dominating industry discourse, cross-border e-commerce platforms and merchants increasingly embrace the adage of not putting all their eggs in one basket.
From August 15 to 17, the 2025 China (Guangzhou) Cross-Border E-Commerce Fair convened in Guangzhou under the auspices of China Foreign Trade Center. The biannual event, held each spring in Fuzhou and autumn in Guangzhou, drew over 1,000 supply-chain firms, more than 40 domestic and international e-commerce platforms, and nearly 200 service providers. For the first time, professional attendance exceeded 60,000, including buyers from 85 countries and regions such as Thailand, Russia, Malaysia, South Korea, and India.

When the inaugural fair launched in September 2021, cross-border transaction volumes soared amid the pandemic, and the U.S. market was fiercely contested. Four years later, shifting global conditions have led exporters to diversify their target markets as a risk-mitigation strategy.

Guzhen’s Jinyou Lighting Factory exemplifies this pivot. Company head Wu Yilong explains that although the United States once accounted for roughly half of its orders, volumes have fallen by approximately 30% this year. Consequently, the firm is now exploring markets in Russia, Central Asia, and South America.

The end of the U.S. de minimis exemption in April triggered new tariffs on small parcels from China, delivering a sharp adjustment for merchants heavily reliant on American consumers. In 2024, exports to the U.S. represented 36.2% of China’s cross-border e-commerce trade but just 14.7% of total goods exports, underscoring the sector’s vulnerability to U.S. tariff policies.

Guangdong contributes more than one-third of the nation’s cross-border e-commerce volume. Between 2015 and 2024, the province’s import-export value catapulted from RMB 11.3 billion to RMB 745.4 billion—an increase of 66 times at an average annual growth rate of 60%—making it a bellwether for industry trends.

Li Changheng, Secretary-General of the Zhuhai Printing Equipment and Consumables Industry Association, notes that Europe and North America account for 50–60% of the print consumables market, with the U.S. alone representing about 30%. He warns that when new tariffs were announced, many companies halted shipments, and given typical inventory cycles of three to six months, a one-month pause translates into supply disruptions through July and August.

Li acknowledges that no immediate remedy exists for the U.S. market. Previously, firms could assemble in Southeast Asia or Mexico for re-export, but global tariff coverage has rendered that option unworkable.

Made-in-China.com, the leading domestic third-party B2B platform, ranks first in Guangdong user volume. Yang Ming, its Director of Public Affairs, identifies three strategic responses to tariffs: observing evolving policy, stockpiling in overseas warehouses, and customizing logistics for faster delivery. He adds that the platform has expanded its own and partner warehouse networks to support door-to-door express services.

Yang also highlights localization efforts. Some companies are registering entities or establishing factories in the U.S. to bypass tariffs, driving demand for local distribution channels, grassroots marketing, agent recruitment, and comprehensive sales frameworks.

A third approach targets emerging markets. Unlike the explosive demand for overseas warehousing, cultivating new markets is a long-term endeavor requiring brand building, product distribution, market education, and buyer development.

Industry sentiment has shifted decisively toward diversified markets and platforms. Li, who also oversees the Zhuhai International Office Equipment and Consumables Expo—one of the sector’s premier exhibitions—reports that enterprises are actively exploring South America, the Middle East, Southeast Asia, and other Belt and Road economies.

“Reducing reliance on the U.S. is essential,” Li observes. As printer ownership expands globally, markets in Africa and South America, such as Brazil, Argentina, and Chile, are growing rapidly—though from smaller bases, meaning even doubling volumes yields modest scale.

Yang reveals his team is conducting on-the-ground research in emerging regions. He cites Riyadh’s King Salman Park and other Saudi infrastructure projects as significant opportunities, while noting that South America’s geographic distance from China leaves ample room for Chinese products to increase their market penetration.

Wu Xiurong, partner at Guangzhou Jinpeng Law Firm and a specialist in cross-border e-commerce law, confirms a surge in inquiries about markets like Brazil and Mexico. Legal consultations now cover company registration, local taxation, intellectual property protection, and related regulatory requirements.

This diversification trend is unmistakable. Beyond established markets in Europe, North America, Japan, and Korea, many brands are extending into Latin America, opening local offices in Brazil and establishing operational centers in the Middle East and Africa. Legal concerns have evolved from platform compliance and intellectual property to consumer rights protections and unfair competition issues abroad.

Latin America, led by Brazil and Mexico, is emerging as a blue-ocean market. According to Goldman Sachs’ 2024 Global E-Commerce Handbook, the region’s e-commerce market grew from USD 47 billion in 2019 to USD 105 billion in 2022, with online penetration rising from 10.7% to 20.9%. In 2024, Brazil and Mexico are projected to grow by 11% and 23%, with online retail penetration reaching 30.5% and 24.5%, respectively. Russia has outpaced all competitors, with its e-commerce sector expanding from RUB 1.7 trillion to RUB 12.6 trillion in five years—a 7.5-fold increase—cementing its status as a top emerging market.

Ozon, Russia’s second-largest e-commerce platform often likened to “Amazon plus Tmall,” reports a marked uptick in seller registrations this year. Kylie, Senior Manager of Merchant Operations for Ozon China, attributes this to geopolitical uncertainty and notes that the platform has eased onboarding by eliminating deposit requirements and accepting only a business license, email, and phone number.

Kylie outlines four categories of Chinese products in high demand in Russia: electronics (smartphones, tablets, laptops, peripherals); fashion (apparel, footwear, accessories); home goods (DIY tools, hardware, fishing gear, outdoor equipment); and mother-and-baby items (especially toys), with close ties to Guangdong’s Chenghai toy cluster. As Ozon enters its peak season, small appliances will be a focus.

Wu Yilong is actively expanding into Russia, listing on Amazon, eBay, and Ozon. He cites Russia’s latitude and long winters as drivers of robust lighting demand. “Among CIS nations, Russia leads in GDP per capita and overall GDP, making it a logical priority for multi-platform sellers,” Kylie adds.

Purchasing power remains the defining factor for cross-border e-commerce. Europe rivals the U.S. in market size and boasts mature e-commerce infrastructure. Some printers have shifted focus to Europe, but slowing consumption and continued competition on price—amid rising production costs—have squeezed profit margins.

In the printing consumables sector, Li predicts that direct-to-consumer e-commerce will become the prevailing model. “Past reliance on agents and distributors eroded factory margins. Direct cross-border sales enhance profitability for manufacturers.”

Europe poses its own compliance challenges. Wu explains that small sellers seldom operate in Europe, the U.S., and Southeast Asia simultaneously due to the complexity of understanding divergent consumer preferences and legal frameworks. The European Union carries the highest compliance costs—covering IP, environmental standards, consumer protection, data compliance, and privacy—while each EU member state maintains its own regulations alongside EU law. The United Kingdom, now outside the EU, follows a separate legal regime.

Although Wu Yilong’s factory receives some European orders, volumes remain limited. He plans to explore Africa and Southeast Asia, identifying Kenya, Ethiopia, and South Africa as promising markets.

Remarkably, as Chinese firms invest in emerging economies, those regions are also seeking opportunities in China. This year’s fair featured 35 Thai companies as the guest country for the first time. Chen Lilin, Commercial Affairs Consul at the Royal Thai Consulate-General in Guangzhou, explained that Thai firms, lacking after-sales support on e-commerce platforms, aim to learn from China’s cross-border experience.

Chen added that facilitating Thai products’ entry into China is a key focus for the coming year, with initiatives such as the “SME Entry into China” project. Thai pharmaceuticals, condiments, and fruit-based goods—popular among Chinese tourists—are poised to become flagship categories in the country’s cross-border e-commerce landscape.