The eCommerce Association Georgia (eCAG) was established in 2020 with the aim of promoting the growth and development of e-commerce in Georgia. The association’s primary goal is to create a strong digital economy by bringing together businesses, professionals, and stakeholders in the e-commerce ecosystem. Chairman of eCAG, Vladimer Kandelaki, was a guest on WORLDEF E-COMMERCE MAGAZINE.

eCAG’s mission: The goal is to support businesses, advocate for fair regulations, and provide education and resources to help local businesses succeed in the digital space.

eCAG’s vision: Our goal is to make Georgia the leading e-commerce hub in the region, connecting local and global markets, while making innovation, inclusivity, and sustainability the core elements of our efforts. Through initiatives such as the “TrustMark project,” “eCommerce Academy,” and “eCommerce Day,” we are building a stronger and more connected e-commerce community.

“We are focused on establishing strong interaction with Europe”

Chairman of eCAG, Vladimer Kandelaki, outlined the association’s goals in Europe as follows:

“The eCAG has a clear focus on engaging with Europe as part of Georgia’s strategic direction toward EU integration. Our objectives in Europe are rooted in expanding the opportunities for Georgian businesses and fostering international collaboration. In Europe, our key objectives are:

• Expanding Georgia’s global footprint: We aim to connect Georgian businesses with European markets, enabling them to access new customers and opportunities.
• Promoting collaboration: We are building partnerships with European associations and companies to share knowledge, exchange best practices, and foster cross-border e-commerce.
• Advocating for European integration: Georgia is on the path to European Union integration, and we support aligning local e-commerce practices and regulations with EU standards to ensure a smooth transition.
• Creating exposure for Georgian businesses: Through international events like the E-Commerce Berlin Expo, we help local businesses showcase their products and services to global audiences.

Our work in Europe is about positioning Georgia as a trusted and competitive player in the global e-commerce ecosystem while empowering businesses to scale beyond borders.”

“The e-commerce market in Georgia surpassed 500 million dollars in 2024”

Kandelaki also shared basic information and current statistics about the e-commerce ecosystem in Georgia:

“The e-commerce sector in Georgia is witnessing robust growth, driven by digital transformation and changing consumer behavior. Here’s an overview of the current state of the ecosystem:

• E-commerce volume (2024): The estimated annual e-commerce market size in Georgia exceeds $500 million USD, driven by increasing online transactions in retail, services, and digital products.
• E-commerce penetration: Approximately 25% of Georgian consumers actively shop online, with this number steadily rising due to improved internet access and digital literacy.
• Annual growth rate: The e-commerce sector has grown at an average annual rate of 15-20% over the past five years, with accelerated growth observed during the pandemic.
• Key drivers: Growing adoption of digital payment methods, increased smartphone penetration, and a surge in cross-border shopping are fueling the sector.
• Challenges: While e-commerce is expanding, barriers such as logistical infrastructure, trust in online platforms, and alignment with international standards remain areas for improvement.

Georgia’s e-commerce ecosystem is on an upward trajectory, with significant potential to become a regional hub for digital commerce.

“WORLDEF is a leading platform that brings together global e-commerce stakeholders”

Chairman of eCAG, Vladimer Kandelaki, lastly evaluated the collaboration between eCAG and WORLDEF: “Our partnership with WORLDEF has been a cornerstone in fostering Georgia’s integration into the global e-commerce ecosystem. WORLDEF’s reputation as a leading platform for connecting global e-commerce stakeholders has been instrumental in creating opportunities for Georgian businesses to engage with Turkish and international markets. Through our collaboration, WORLDEF has provided invaluable insights into global e-commerce trends, strategies, and best practices, which have been shared with our members to enhance their competitiveness.

WORLDEF’s events have opened doors for Georgian businesses to connect with Turkish and international leaders, investors, and potential partners. These connections are crucial for fostering cross-border collaborations and scaling businesses globally. By working with WORLDEF, we have been able to inspire and empower Georgian businesses to adopt global standards and innovations, further advancing the local e-commerce ecosystem. We deeply value our partnership with WORLDEF, as it aligns with our mission to connect Georgia’s e-commerce community with global opportunities and resources.”

The French government has officially announced its intention to abolish the €150 customs duty exemption for e-commerce platforms during EU negotiations. In the related statement, it was noted that approximately 1.5 billion parcels enter France annually through cross-border e-commerce. A significant portion of these parcels are exempt from customs duties because their value remains below €150. These packages mostly originate from Asia and China.

The EU had also recently announced its plan to end the policy of exempting online purchases under €150 from customs duties. While the implementation of this reform is awaited, France has also brought some interim solutions to the agenda. One of these solutions involves charging a fixed “processing fee” for each parcel.

EU Imported 4.6 Billion Parcels in 2024

EU countries imported 4.6 billion parcels valued under €150 in 2024. It was stated that 91% of these parcels originated from China. According to the European Commission’s report dated February 5, 2025, this figure doubled between 2020 and 2022, and then doubled again between 2022 and 2024.

China-based platforms Temu and Shein ranked among the top ten most visited e-commerce retail sites in France in the last quarter of 2024. Both platforms reached more than 15 million unique visitors per month.

France Takes Measures Against Cross-Border E-Commerce

The French government has also brought forward several measures regarding cross-border e-commerce. These steps include intensifying inspections of foreign e-commerce platforms and tripling the targeted sampling rate for e-commerce parcels. If these measures are implemented, hundreds of thousands of products entering via cross-border e-commerce are expected to be rejected.

Additionally, product reviews on e-commerce sites will comprehensively examine not only compliance with safety standards but also labeling accuracy, environmental claims, and commercial practices.

The French government emphasized that a lasting solution to these issues can only be achieved through joint efforts involving increased inspections and reforms in customs regulations. In this context, France advocates for the collective recognition of the issue and a commitment to addressing it effectively.

U.S. Ends Duty-Free Privileges for Low-Value Shipments from China

On April 2, U.S. President Donald Trump issued a presidential order removing the duty-free transit privilege previously granted to low-value shipments from China and Hong Kong. This move directly targets the “de minimis” provision, which allows goods valued under $800 to enter the U.S. duty-free. The new regulations will take effect as of May 2.

 

China’s E-Commerce Air Cargo Flights Are Being Canceled!

Marcin Piekarczyk, Founder of MP Consulting and Head of E-Commerce at WAFI Group, has over 16 years of experience managing major retail organizations across three continents. In addition to leading well-established global brands, he has also managed numerous start-ups that have become profitable and market-leading. Marcin Piekarczyk was featured in WORLDEF E-COMMERCE magazine.

“Our B2B Approach Focuses on Collaboration”

Marcin Piekarczyk shared insights about his latest venture, MP Consulting: “My most recent venture involved the establishment and launch of a 3,500 sq. m. phygital concept store, which blends physical and digital retail experiences in a unique and innovative way. What distinguishes this business is its product differentiation and the exceptional overall retail experience. Rather than competing with brands that are readily available both online and offline, I have deliberately curated a selection of premium to luxury brands from around the world, bringing them to the UAE market. Currently, the store offers a diverse collection of over 200 brands from more than 60 countries.

In alignment with evolving retail trends in the GCC, the in-store experience is fully experiential. We host events within the store, and I, along with my team, made the decision to open a specialty coffee shop to enhance the customer experience. Additionally, store design and visual merchandising are dynamic, ensuring that every visit offers a fresh, surprising, and impressive experience. This, I believe, is the essence of ‘the new retail.’

Furthermore, our B2B approach is centered on collaboration. We work closely with our brand partners, allowing them to merchandise their products with the support of my team, activate and launch new collections, and actively contribute to the success of our business. This creates a mutually beneficial environment for both B2B and B2C stakeholders.”

“In E-Commerce and Retail, Critical Elements Are Customer, Experience, and Data”

When asked about his activities in e-commerce, Marcin Piekarczyk responded: “I approach such questions by going back to the fundamentals. While many organizations focus on creative solutions and trending ideas, it is essential to build a solid foundation first. In the context of e-commerce and retail, the critical pillars are customer, experience, and data—all of which must be integral components of any digital strategy.

• Customer: Today’s customers are increasingly savvy, less loyal, and more price-sensitive due to the broader competition and easier access to global brands. Despite a modest 4.6% growth in retail within the GCC, consumers are more cautious in their purchasing decisions. Loyalty remains the key to long-term success. Effective CRM campaigns are crucial for maintaining customer loyalty and ensuring a strong, ongoing relationship. Ultimately, the customer is king.
• Experience: The customer experience is another foundational element. Consumers today expect more than just products—they seek an engaging, memorable experience with brands. This is especially important in the GCC, where shopping malls continue to play a significant role in shaping consumer behavior. To succeed, brands must implement a fully omnichannel strategy that ensures a seamless, experiential retail environment. There is a considerable opportunity here, as e-commerce penetration in the GCC remains relatively low—typically in the single digits—well below global averages.
• Data: The importance of data cannot be overstated. While much is said about AI and data modeling, many businesses still fail to effectively harness the wealth of data they collect.

In my previous roles, I had the opportunity to work on data consolidation projects, aggregating insights from all retail touchpoints across multiple brands and sales channels. This experience allowed me to educate senior leadership on how to strategically leverage data. When understood and used correctly, data is a goldmine that can provide invaluable insights and drive informed decision-making.”

“Many Companies in Dubai Still Rely on Traditional IVRs and Chatbots”

Discussing the developments in the e-commerce ecosystem in Dubai, Marcin Piekarczyk shared the following information: “The most significant development in the industry today is undoubtedly Artificial Intelligence (AI), which many companies are now striving to incorporate. I believe AI has the potential to be a true game changer, provided it is applied strategically. In Dubai, several companies still rely on outdated systems such as traditional IVRs and chatbots, which are often poorly managed and result in a subpar customer experience. A simple adaptation of AI to create intelligent customer service agents could significantly enhance the customer experience.

I have been collaborating with a company in Asia that has developed a Minimum Viable Product (MVP) for this very purpose. Last week, I had the opportunity to engage with this technology, and I am confident it will revolutionize the industry.
AI will have a wide range of applications, spanning across operations, fulfillment, marketing, and more.

While we are still in the early stages of AI adoption, there is a common misconception that AI is simply an extension of basic algorithms that have been in use for years. In reality, AI offers far more advanced capabilities, enabling companies to automate, personalize, and optimize operations in ways that were previously unimaginable.”

“It is Crucial to View the Retail Experience as an Enjoyable Opportunity”

Marcin Piekarczyk also made the following observations about retail and e-commerce: “To address this question directly, the key to success in retail is ensuring that you offer the right product at the right price, coupled with a seamless and straightforward customer journey that eliminates the potential for errors, confusion, or second-guessing.

Beyond this, it is essential to view the retail experience as an opportunity for enjoyment. Customers today seek more than just a transaction—they want an engaging and enjoyable experience while shopping. Furthermore, the purchase process should not end with the exchange of money and product. It is critical to nurture customer relationships, provide exceptional service, and ensure that customers feel valued, encouraging them to return.

While many may expect me to highlight buzzwords such as AI, VR, or AR, the truth is that these technologies are tools to serve the larger purpose of enhancing customer experience and optimizing organizational profitability. Ultimately, it is the fundamentals that drive success, with technology playing a supporting role in achieving these objectives.”

“It is Fascinating to Witness How E-Commerce Trends Transition Across Markets”

WAFI Group Head of E-Commerce and MP Consulting Founder Marcin Piekarczyk concluded:

“It is essential to build a well-rounded team that, while operating within a stable organization, is able to think with the agility and innovation of a start-up. In my most recent project, I was fortunate to assemble an exceptionally talented team that worked collaboratively to ensure the success of the business.

It is particularly fascinating to observe how e-commerce trends transition between markets. Throughout my career, I have had the privilege of working across three continents, gaining experience in both highly developed markets and emerging economies. My roles have ranged from hands-on positions to strategic leadership, which has shaped my approach to talent acquisition. I seek individuals who possess the ability to execute at a tactical level while also having the foresight to step back and think strategically.

Currently, I am in the process of transitioning my existing business and will soon be available for new projects in the GCC as well as globally. Please feel free to reach out if you are interested in collaborating on retail projects.”

Who is Marcin Piekarczyk?

With over 16 years of experience managing large retail organizations across three continents, Marcin Piekarczyk has developed a proven track record of success. He has led well-established global brands such as Lacoste, The Body Shop, Lego, and Mothercare, as well as numerous start-ups that have grown into profitable, market-leading businesses.

Marcin Piekarczyk is highly skilled in driving digital transformation, with extensive expertise in transitioning businesses from traditional retail models to fully integrated hybrid/omnichannel operations. His deep understanding of the evolving retail landscape enables him to navigate complex challenges and achieve sustainable growth.

As an industry expert, business consultant, and keynote speaker, Marcin Piekarczyk is passionate about fostering innovation and implementing forward-thinking strategies that position businesses as leaders in their respective markets. He is committed to supporting companies in their digital and retail journeys, offering tailored solutions through both full-time engagements and his consulting firm, MP Consulting. Marcin is always open to collaborating with businesses worldwide to drive transformation and long-term success.

The report “TOP 500 B2C Cross-Border Retail Europe” was published by Cross-Border Commerce Europe. According to the report, the crossborder e-commerce market in Europe is growing every year. In 2023, the cross-border e-commerce market in Europe had reached sales of 237 billion euros. Of this total amount, 107 billion euros were represented by online stores in Europe.

Cross-Border E-Commerce Market in Europe Represents 36% of General E-Commerce

The data for the 2024 crossborder e-commerce market in Europe has also been announced. Accordingly, the B2C cross-border e-commerce market in Europe reached a sales volume of 275.6 billion euros in 2024. This figure represents a 16% increase compared to 2023. The total value of e-commerce in the continent is estimated to be 765.6 billion euros. This figure represents a 2.1% increase compared to the previous year. Accordingly, the cross-border e-commerce market in Europe represents 36% of the general e-commerce market in Europe.

The Largest 500 Brands Achieved 69.5 Billion Euros in Revenue

According to the report examining the 500 largest crossborder e-commerce sellers in Europe, in 2024, the total revenue of these 500 cross-border B2C brands reached 69.5 billion euros. This figure represents a 39% increase compared to the previous year. This increase reveals the strength of the cross-border e-commerce market and the players in the market.

Balkan eCommerce Summit has become a cornerstone event, fostering collaboration, innovation, and growth in the sector. eCommerce Academy, which operates in the Balkans, has been developing various formats, programs, and initiatives for eight years to strengthen the region’s e-commerce community. It provides businesses with the knowledge, tools, and connections necessary to improve their operations, expand their markets, and significantly boost their sales.

The region’s most important e-commerce event, Balkan eCommerce Summit, brings together all industries intersecting with e-commerce. Behind eCommerce Academy and Balkan eCommerce Summit, both crucial to the region’s e-commerce ecosystem, stands a seasoned professional: Nikola Ilchev. We spoke with Nikola Ilchev, the founder of eCommerce Academy and Balkan eCommerce Summit, about e-commerce and the upcoming summit.

“Our focus is on facilitating cross-border sales in the Balkans”

Nikola Ilchev stated: “We take immense pride in being the driving force behind some of the most impactful and influential events across the Balkan region. Even when we are not the primary organizers, we remain deeply involved, providing unwavering support to ensure their success. A notable example of our commitment to collaboration is our strong and continuous backing of all initiatives spearheaded by WORLDEF, an organization that shares our vision for advancing e-commerce.”

He further added: “In addition to organizing events and providing support, we are dedicated to addressing one of the biggest challenges businesses face in the Balkans: cross-border sales. Our efforts focus on simplifying the complexities of international trade for e-commerce companies in the region. By fostering cooperation, building bridges, and eliminating barriers, we aim to create a seamless cross-border trading experience, enabling businesses from the Balkans to thrive in an increasingly competitive global market.”

Balkan eCommerce Summit (*) – April 29-30, 2025!

As the founder of Balkan eCommerce Summit, Nikola Ilchev highlighted that the summit is a leading event that brings together businesses and professionals from more than 20 countries across Central and Eastern Europe. Regarding the upcoming event, organized under eCommerce Academy’s leadership at Arena Sofia, he shared the following insights:

“For 2025, we are thrilled to announce the participation of attendees and exhibitors not only from the region but also from countries like Ukraine, Türkiye, Germany, Italy, and even as far as India. This expansion underscores the Summit’s growing reputation as one of the most significant gatherings for e-commerce and digital marketing professionals in the region, playing a pivotal role in shaping the industry’s future.”

Nikola Ilchev continued: “Balkan eCommerce Summit has become a cornerstone event, fostering collaboration, innovation, and growth in the sector. Its influence extends far beyond the Balkans, positioning the region as a dynamic hub for e-commerce and digital marketing excellence. The 2025 edition, scheduled for April 29-30, promises to be the most exciting yet, featuring a stellar lineup of world-class speakers.

These experts will share invaluable insights on a wide range of topics, including boosting sales, mastering SEO strategies, crafting impactful marketing campaigns, harnessing the power of social media, exploring emerging trends, building compelling brands, and driving product innovation. Attendees can expect a rich exchange of ideas, hands-on knowledge, and unparalleled networking opportunities.”

*For more information and registration, visit: https://balkanecommerce.com – Balkan eCommerce Summit

“Our greatest strength is our unique network of over 4,000 e-commerce business representatives”

Speaking about their contributions to e-commerce brands and the e-commerce ecosystem in the Balkans, Nikola Ilchev provided the following details:

“E-commerce brands are constantly seeking new markets to expand into, innovative partnership opportunities, and cutting-edge services to accelerate their growth. This is where we excel. With our extensive expertise and deep understanding of the e-commerce ecosystem, we specialize in facilitating meaningful connections between service providers across different countries and regions. Whenever an e-commerce business owner needs assistance in finding reliable partners or solutions, we are always ready to offer the most well-informed and tailored recommendations.”

“Our strength lies in our unparalleled network, which includes over 350 service providers and a vibrant community of more than 4,000 e-commerce business representatives across 20+ markets. This extensive network enables us to serve as a trusted and indispensable partner, helping businesses navigate industry complexities and seize growth opportunities beyond borders.”

“The Balkans offer a fertile ground for e-commerce growth”

Nikola Ilchev also assessed the development of e-commerce in the Balkan region:

“The Balkans stand out as one of the last regions in Europe where e-commerce continues to experience consistent double-digit growth year after year. This dynamic growth has made the region an increasingly attractive destination for e-commerce businesses from Central and Western Europe looking for new opportunities and untapped markets. With a unique combination of rapid digitalization and increasing consumer demand, the Balkans present fertile ground for e-commerce expansion and innovation.”

“Leading this regional growth is Romania, which stands out due to its large population, advanced digital infrastructure, and mature market dynamics. As the largest market in the region, Romania sets a benchmark for digital transformation and e-commerce adoption. Following closely behind are Bulgaria, Greece, and Croatia, all of which have thriving e-commerce ecosystems. These countries significantly benefit from EU membership, making cross-border sales more seamless for businesses and consumers alike.”

“Meanwhile, the Western Balkans—including Serbia, Bosnia and Herzegovina, North Macedonia, Montenegro, Albania, and Kosovo—has emerged as an exciting hotspot for e-commerce growth. Over the past few years, these markets have seen a remarkable surge in online transactions, driven by increasing internet penetration, growing consumer confidence in online shopping, and the adoption of digital payment solutions.”

“At the heart of our company is a key leader”

Ilchev emphasized that they collaborate with top professionals across various fields, including digital advertising, email marketing, copywriting, design, public relations, and communication strategies. He further added: “At the heart of our company is a key leader—someone who takes responsibility and drives the entire team forward.”

Finally, he reflected on their collaboration with WORLDEF: “The team at WORLDEF are both valued partners and trusted friends, and we deeply appreciate our collaboration. Since our first participation in their event in 2023, we have consistently supported their efforts and have always relied on their support in return. Their team is exceptional—highly skilled, dedicated, and truly inspiring to work with.”

Following U.S. President Donald Trump’s implementation of a 34% reciprocal tariff on imports from China and the termination of the “de minimis” exemption—which allowed packages valued under $800 to enter the U.S. duty-free—most of China’s 120,000 online exporters, whose main market is America, have entered a compliance process.

Chinese E-Commerce Sellers Cancel Discounts in Response

Chinese e-commerce sellers are trying to make sense of Trump’s new tariffs and the end of the ‘de minimis’ exemption! Chinese cross-border e-commerce sellers operating on platforms such as Amazon.com, Shein, Temu, and ByteDance’s TikTok Shop have started canceling discounts and shifting to new markets in response to the sudden end of the “de minimis” practice, which had provided exemption from rising U.S. tariffs and customs duties.

Duty-Free Exemption Ends on May 2

The 34% increase, to be implemented by the Trump administration, comprises a 24% country-specific tax added on top of a 10% universal base rate. The base rate will come into effect on April 5, while the higher rate will take effect on April 9. The long-standing duty exemption will end on May 2. As of May 2, products valued under $800 from these regions will no longer benefit from the U.S.’s “de minimis” exemption.

The “de minimis” provision in Section 321 of the U.S. Customs Act of 1930 has long allowed low-value packages to be exempt from formal customs procedures. However, with such shipments exceeding 1.4 billion units annually and reaching a total value of $64.6 billion in the 2024 fiscal year, concerns have risen about the lack of oversight, particularly regarding counterfeit goods and fentanyl (opioid drug) trafficking.

This decision aims to “halt the flow of illegal synthetic opioids, ensure competitive fairness for domestic retailers, and increase trade pressure on China.” These changes pose a major challenge for small exporters, manufacturers, and the Chinese online seller community symbolized by “Made in China, sold on Amazon,” and threaten the future development of cross-border e-commerce.

Tax Rates Will Reach 77.5% for Some Shipments

Starting from April 9, 2025, the average tariff rate on goods imported from China to the U.S. will exceed 50%. Some shipments will face total tariffs as high as 77.5%. For shipments sent by mail, a new fee of $25 per item will be introduced. This fee will rise to $50 after June 1. This change will especially impact small sellers and individuals who rely on international postal systems. Major platforms such as Shein and Temu are already less dependent on postal services due to concerns over speed and reliability.

Will Be Shifted to “Registered Importer” Status

With the Trump administration’s new regulation, carrier companies will now be held responsible for collecting import duties. Additionally, they will be shifted to a “registered importer” status. Experts state that most carriers are unprepared for this new legal responsibility and lack the detailed shipment data required for customs procedures. While integrated carriers such as FedEx and UPS already collect such data, commercial airlines and the U.S. Postal Service will need to establish new data collection systems.

Whether this new Trump administration decision will cover Macau (a special administrative region of China) will be evaluated by the Department of Commerce within 90 days. Other countries are still benefiting from the “de minimis” privilege. However, officials note that this may change as the global implementation infrastructure develops.

E-Commerce Supply Chains Disrupted

These strict measures in the U.S. follow a similar short-term restriction implemented in February. Delays have already occurred in e-commerce supply chains. Shipments were delayed because U.S. Customs and Border Protection (CBP) and the Postal Service failed to quickly collect the necessary data, and consumers faced unexpected charges. Congestion has arisen at airports due to a lack of information required for customs procedures.

Platforms like Shein and Temu, as a preparation for such regulations, have turned to sea freight and U.S.-based warehouses. This allows shipments to be consolidated, reducing customs brokerage fees and transaction costs. With the consolidated entry model, the tax payment process can be delayed until the product is sold. In traditional imports, taxes on the entire container must be paid upfront.

Half of Air Freight from China to the U.S. Comes from E-Commerce

Air cargo volumes have already been affected by the Trump administration’s decisions. Approximately half of the air transport from China to the U.S. and 6% of global air cargo demand stem from e-commerce. Due to regulatory uncertainty, many platforms have canceled charter flights and capacity reservations. This has led to a drop in trans-Pacific volumes. Analysts expect a short-term surge and increased freight rates before May 2, followed by a drop in demand and volume.

Due to the Trump Decision, a $5 Product Will Now Be Subject to $4 Tax

Nevertheless, air transport will remain a necessary channel. Due to high storage and labor costs in the U.S. and the risk of stockpiling, it is not possible to pre-position all inventory. Direct-to-consumer shipping will continue, especially for time-sensitive or high-margin products.

However, the economic impact on consumers cannot be ignored. For example, a $5 product will be subject to nearly $4 in taxes—excluding additional fees. This will make fast delivery options via air cargo economically unsustainable. While price-focused retailers like Temu will be more affected by this, high-margin firms like Shein may be able to absorb the costs more easily.

This policy also serves as a negotiation tool. The Trump administration justifies this move by pointing to China’s failure to provide a similar “de minimis” exemption for U.S. goods. Trade analysts say the U.S. is trying to pressure China into offering similar exemptions and taking more serious steps regarding fentanyl exports.

Other Countries Also Face New Tariffs

Countries like Vietnam, Thailand, and Cambodia also face new tariffs of up to 49%. If these countries also lose their “de minimis” privileges, their potential as alternative supply hubs could diminish. On the other hand, European regulators have also begun considering similar measures, which could further strain the global air cargo system.

The removal of the “de minimis” exemption for Chinese e-commerce sellers is seen as a major blow to cross-border e-commerce logistics. However, the sector is expected to adapt to this situation. Shippers are investing in compliance infrastructure, working with customs brokers, and restructuring order fulfillment models. In the long term, a shift toward slower but cheaper sea transport and consolidated B2B shipments may increase—but this would mean failing to meet expectations for fast delivery.

 

EU Lawmakers Demand Urgent Action on E-commerce

Amazon, based in the US, and Flipkart, acquired by Walmart last year, are dominant players in the Indian e-commerce market. The Bureau of Indian Standards (BIS) has increased its inspections of Amazon and Flipkart. Last week, raids were carried out at warehouses in Tamil Nadu, where products that did not meet standards were found to be sold and displayed.

Pressure Mounts on Amazon and Flipkart!

In Amazon’s Delhi warehouses, products such as water heaters and kitchen mixers worth $81,500 were seized. The confiscated products either lacked the standard quality control mark or had counterfeit labels, the agency stated in its announcement.

From Flipkart’s units, approximately $7,000 worth of sneakers, lacking the required product certification marks but ready for shipment, were confiscated. Around 600 pairs of sneakers were seized in this raid.

BIS Conducting Regular Raids on Warehouses

In the past month, BIS has carried out similar raids in various regions of the country, including Delhi, Gurgaon, Faridabad, Lucknow, and Sriperumbudur in Tamil Nadu, seizing numerous substandard products.

Both Amazon and Flipkart announced that they comply with local regulations. Flipkart did not make any statement regarding the Delhi raids. Amazon’s spokesperson in India stated that the company is working closely with various stakeholders and regulators.

Currently, 769 products in India are required to have mandatory certification. The production, import, distribution, sale, leasing, storage, or display (for sale) of these products is prohibited without a valid license or Compliance Certificate (CoC) from BIS.

Tough Measures Taken Against E-Commerce Giants in India

India’s e-commerce market has reached a significant milestone. By 2024, it overtook the United States, becoming the second-largest online shopping market in the world. With 280 million online shopping users, India is still behind China, which has 920 million digital buyers. However, despite this impressive growth, several factors are limiting the sector’s rapid expansion.

According to a report by Flipkart and Bain & Company, India’s e-commerce market grew to $60 billion in 2024. However, the annual growth rate has slowed to 10-12%, marking a decline from the previous years’ annual growth of over 20%. The report attributes this slowdown to broader economic challenges, including rising inflation, stagnant wages, and particularly weakened consumer spending in urban markets.

Why Is E-commerce Growth Slowing in India?

India’s overall consumption growth has taken a hit in recent years. Between 2017 and 2019, before the pandemic, the country’s spending grew at an annual rate of 11%. However, after the pandemic, this rate dropped to 8% between 2022 and 2024. This slowdown has affected all industries, from rapidly growing sectors like food delivery to daily FMCG products. Many consumer brands have struggled to adapt to changing spending habits, reporting lower income growth.

Despite these challenges, India’s e-commerce market is projected to reach $170-190 billion by 2030, with an annual growth rate expected to exceed 18%.

Amazon and Flipkart Dominate India’s E-commerce Market

E-commerce giants Amazon and Flipkart remain dominant players in India’s e-commerce market. However, newer players are also shaking up the market. Meesho, which caters to budget-conscious consumers in smaller towns, recently surpassed Amazon in terms of monthly active users (MTU), signaling a shift in shopping preferences. Meanwhile, quick-commerce services like Blinkit, Zepto, and Swiggy Instamart have gained significant market share in urban areas by offering ultra-fast deliveries.

Key Highlights from the Report

• By 2030, grocery, fashion, and general commerce are expected to account for two-thirds of India’s e-retail market. These categories, which currently make up 55% of e-commerce sales, will drive the next wave of growth.
• India’s e-commerce shopping boom is not limited to metropolitan areas. Since 2020, 60% of new online shoppers have come from tier 2 and smaller cities. Over 60% of new sellers recorded since 2021 have also emerged from these regions.
• Gen Z shoppers represent 40% of India’s e-commerce consumers.
• These highly experimental consumers shop from five or more platforms each year and spend three times more on new fashion brands than older shoppers.
• Hyper-value commerce, offering ultra-low-priced products, has grown from 5% of the e-retail market in 2021 to over 12% in 2024, becoming a major force.

 

China’s E-Commerce Market Leads Globally for 12 Consecutive Years

The Grand Online Sale, Dubai’s premier online shopping festival, is opening its doors for the third time. The event returns from March 27-30, offering online consumers discounts of up to 95% and an entirely new immersive virtual shopping experience.

Virtual Shopping Mall Offers Consumers a Digital Showcase

Organized by the Dubai Festivals and Retail Establishment (DFRE), the Grand Online Discount will provide four days of access to both local and international brands across categories such as fashion, electronics, home décor, and beauty.

The newly introduced virtual shopping mall will allow consumers to explore digital storefronts, unlock exclusive discounts, and participate in prize-winning raffles. Major prizes include a cash reward of 100,000 Dhs and additional prizes worth 50,000 Dhs.

“The Grand Online Sale Will Elevate the Industry to New Heights”

DFRE CEO Ahmed Al Khaja highlighted the festival’s contribution to Dubai’s retail sector, stating, “The Grand Online Sale returns to drive strong growth during one of the busiest shopping periods in Dubai—Eid al-Fitr. We are thrilled to introduce a brand-new immersive shopping experience. This will elevate the retail industry to new heights by positioning the city at the forefront of a digitally-driven retail world.”

Consumers who register on the Grand Online Discount website will gain access to exclusive discount codes and prize opportunities. Participating brands include globally renowned names such as Amazon, Noon, Namshi, Home Centre, Damas, Puma, and Steve Madden.

Cross-Border Commerce Europe published a report on the DIY, Home, and Garden retail market in Europe. According to the report, the total market value, including both online and offline DIY sales, reached €388 billion in 2024.

2025 Forecasts Materialized in 2024 for the Online DIY Market

Within the total market, the share of online DIY sales was 17% in 2024. The market’s revenue for 2024 stood at €66 billion. It had been predicted that online sales in the market would reach €66 billion in 2025; however, this expectation was already met in 2024.

€78 Billion Expectation for 2026

In 2023, the online share of the market was 15.2%, which corresponded to €56 billion out of the total €368 billion market value. The online Do It Yourself market in Europe is expected to reach €78 billion in 2026.

Temu and AliExpress Compete with Amazon

Among the most dominant online stores in the European Do It Yourself sector, Amazon ranks first. The company holds a 15% share of the total online market, which stands at €66 billion. Accordingly, Amazon’s DIY revenues for 2024 amounted to €9.15 billion. Following Amazon, Temu and AliExpress rank among the top competitors.

Cross-Border Online Sales Approaching €22 Billion

According to the report, the growth of the online Do It Yourself market is driven solely by the increasing market share of online-only competitors. This situation is pushing traditional DIY retailers to strengthen their cross-border e-commerce activities, leading to an increase in cross-border sales within the DIY market.

In 2023, the value of cross-border sales was €17.8 billion, representing 31.8% of the online market. In 2024, this figure rose to €21.6 billion, accounting for 32.8% of the total online market. By 2026, the share of online sales within cross-border Do It Yourself sales is expected to reach 34%. This corresponds to €26.5 billion out of the projected €78 billion online market.