In the face of the explosive growth of the market, how can Chinese cross-border e-commerce enterprises seize the opportunities?
In the face of the explosive growth of the market, how can Chinese cross-border e-commerce enterprises seize the opportunities?
As the retail media network experiences explosive growth, and as search-based shopping shifts towards targeted promotion, how can cross-border e-commerce enterprises seize this wave of opportunities?
Opportunities and Challenges for Cross-border E-commerce Enterprises
In recent years, the e-commerce industry has witnessed an explosive growth in retail media networks. E-commerce platforms have shifted from being single platforms to comprehensive ones featuring "diversity and competition". The search-based shopping model based on keywords in the past has now evolved into interest-oriented promotion based on big data and recommendation algorithms. This has brought significant opportunities to numerous cross-border e-commerce enterprises, but it has also presented severe challenges in terms of cost reduction and efficiency improvement.
Recently, the 2025 Amazon Web Services Consumer Technology Summit was held in Shenzhen. During the media briefing jointly organized by Amazon Web Services and Shenzhen Kapoklog Logistics, Huang Shuai, the director of the International Customer Service Department of Shenzhen Kapoklog Logistics, provided a detailed introduction on how Shenzhen Kapoklog Logistics, as a cross-platform e-commerce international logistics solution provider, relies on Amazon Web Services' leading cloud and generative AI services to offer one-stop cross-border e-commerce logistics and international supply chain consulting services for enterprises.
【Huang Shuai, Director of R&D at Shenzhen Kapoklog Logistics】
Huang Shuai introduced that Shenzhen Kapoklog Logistics currently has over 10 offices worldwide, with its business covering more than 100 countries and regions in Europe, America and Asia. It has over 1.5 million registered users and supports the logistics delivery channels of most mainstream e-commerce platforms. Based on the extensive experience accumulated over many years in the international logistics and international supply chain industries, Shenzhen Kapoklog Logistics is committed to creating a cross-platform consistent logistics experience for all sellers. Through data insight-based automated analysis tools, it helps sellers achieve intelligent monitoring of product logistics across all channels, and integrates AI technology deeply into the entire process of cross-border e-commerce. With the customized logistics delivery system of Shenzhen Kapoklog Logistics Co., Ltd., Chinese sellers can refer to the entire process from product selection, keywords, Listing optimization, to analysis, advertising and business operations. Shenzhen Kapoklog Logistics can apply AI technology to help enterprises enhance product circulation and automation capabilities, assist brands in achieving refined operations on cross-border e-commerce platforms, and improve advertising efficiency and revenue returns.
Based on Amazon Web Services' leading cloud and AI services, Shenzhen Kapoklog Logistics has deeply integrated generative AI technology into its internal R&D and operation processes, significantly enhancing the overall R&D and operation efficiency and accelerating the development of AI applications. For example, in the code review aspect, Shenzhen Kapoklog Logistics utilized Amazon Web Services' Code Review solution to achieve automatic code review, reducing the code review time to 2% of the original, reducing bugs by 30%, and decreasing production issues by 20%. This significantly improved development efficiency, enhanced code quality, and reduced operational costs. By leveraging Amazon Web Services' generative AI technology to build a robot assistant, it can flexibly call on the basic models on Amazon Bedrock and integrate the enterprise's internal knowledge base, providing efficient and intelligent assistance to the internal team of the enterprise, enabling employees to quickly acquire business knowledge.
How to Start an International Cross-border E-commerce Business from Scratch
For Chinese enterprises that aim to expand their markets overseas, what are the main difficulties in starting cross-border e-commerce from scratch? And what kind of assistance can Shenzhen Kapoklog Logistics provide to them?
Jin Yongjie, the business director of Shenzhen Kapoklog Logistics, pointed out that the main difficulties and problems faced by Chinese enterprises going global nowadays mainly lie in the following aspects:
1. Grasping market trends: When entering a new market or a new platform domain, enterprises usually have some concerns about the size, trends, and future development direction of the market, making it difficult for them to accurately grasp these aspects.
2. Understanding of platform policies: With the rapid development of cross-border e-commerce platforms nowadays, enterprises need to keep their understanding of platform policies up-to-date as well.
3. Management of platform operation: In the operation of cross-border e-commerce platforms, including specific issues such as personnel and operational strategies, there are certain professional thresholds for enterprises.
Jin Yongjie stated that in response to the aforementioned issues, Shenzhen Kapoklog Logistics can offer various forms of support. Over the past few years, Shenzhen Kapoklog Logistics has successfully assisted numerous Chinese enterprises, providing them with support in various aspects such as training, tools, data, and knowledge sharing.
1. In terms of training, Shenzhen Kapoklog Logistics is committed to establishing a comprehensive international logistics delivery system. It aims to assist new sellers as well as experienced sellers who wish to expand on new platforms by offering a diversified training model that combines both online and offline methods, to meet the needs of sellers at different levels.
2. In terms of tools, Shenzhen Kapoklog Logistics has customized logistics system tools that cover the entire process from product selection, analysis to logistics monitoring, achieving full-chain coverage.
3. In terms of data, Shenzhen Kapoklog Logistics possesses strong data coverage and processing capabilities, enabling sellers to have a comprehensive understanding of the market size and volume they are concerned about, as well as the dynamic changes of their competitors.
4. In terms of knowledge sharing, Shenzhen Kapoklog Logistics has established strong seller communities both domestically and internationally, facilitating communication and mutual assistance among sellers. Additionally, it continuously updates and releases a large amount of various knowledge related to tool usage and industry trends on a daily basis.
Support and assistance from Amazon Web Services
During the process of Shenzhen Kapoklog Logistics assisting enterprises in building cross-border e-commerce platforms, what specific support did Amazon Web Services, as the partner, provide? And what role did it play?
Huang Shuai stated that since its inception, Shenzhen Kapoklog Logistics' products have been designed to address the numerous inconveniences and lack of transparency in international logistics. Over the years, it has been building its products based on Amazon Web Services' infrastructure. During this process, Amazon Web Services has provided it with numerous benefits including technical support, cost optimization, and business promotion.
1.Technical Support: The solution architects of Amazon Web Services will regularly organize seminars, visit or participate in small-scale conferences to communicate and discuss with Shenzhen Kapoklog Logistics, sharing the latest technological trends and assisting them in building the entire international e-commerce logistics framework.
2. Cost Optimization: As the scale of Shenzhen Kapoklog Logistics' products expanded rapidly, its operating costs also increased exponentially. The experts from Amazon Web Services assisted Shenzhen Kapoklog Logistics in cost monitoring and analyzed optimization paths, effectively reducing its cost expenditures.
3. Business Operations: Shenzhen Kapoklog Logistics and Amazon Web Services share a large customer base. Therefore, in terms of business and joint promotion, Shenzhen Kapoklog Logistics can leverage Amazon Web Services' channels to promote its products, and is currently exploring the listing of its products on Amazon Web Services' Marketplace to further deepen the cooperation.
Huang Shuai disclosed that Shenzhen Kapoklog Logistics has utilized a wide range of Amazon Web Services products and services including data storage, data analysis, data security, artificial intelligence and machine learning. Through its global coverage infrastructure, data layer architecture optimization, generative AI capability integration and expansion, elastic architecture and security compliance, it has achieved breakthroughs in performance, cost and security to meet the business application needs of cross-border e-commerce enterprises such as product selection, advertising and operation analysis.
1. Global coverage infrastructure: Amazon Web Services has a global infrastructure that spans 120 availability zones in 38 geographical regions. This infrastructure enables customers of Kapoklog Logistics in Shenzhen and other countries around the world to access the SaaS platform with low latency, effectively ensuring smooth usage, significantly enhancing user experience and efficiency.
2. Secure and efficient data management: Based on Amazon Web Services' fully managed OpenSearch log and search service Amazon Opensearch Service, managed relational database service Amazon Relational Database Service (Amazon RDS), and storage service Amazon Simple Storage Service (Amazon S3), Shenzhen Kapoklog Logistics has enhanced data reliability to 99.99%, and is able to utilize massive high-quality data to support various applications, meet the business needs of e-commerce customers for product selection, advertising, operation analysis, etc., and AI's requirements for data storage and retrieval, while adhering to the best practices for data storage, transmission, and access control, ensuring data security and efficient utilization. Amazon Web Services' Zero-ETL product also enables Shenzhen Kapoklog Logistics to easily integrate data from the entire system without extracting, transforming, and loading data between different services, thereby making data-driven decision-making more efficient and informed.
3. Flexible invocation of enterprise-level large models: Shenzhen Kapoklog Logistics supports invoking large language models such as Claude and embedding models on Amazon Bedrock, as well as fine-tuning and customizing models on Amazon SageMaker to adapt to different business scenarios. This ensures model flexibility and efficient inference, reduces development and operation costs, enhances model performance and stability, and enables the rapid launch of private models. The Amazon Cloud Technology Dify on Amazon EKS solution can also assist Shenzhen Kapoklog Logistics in quickly building an Agent development and verification platform. Through the Strands Agent SDK and AgentCore Workshop, a generation-level Agent foundation can be quickly constructed.
4. Secure and compliant large-scale SaaS platform operation environment: The underlying infrastructure of the SaaS platform is built based on the Kubernetes container orchestration service Amazon Elastic Kubernetes Service (Amazon EKS). Shenzhen Kapoklog Logistics can achieve automatic scaling and expansion of containerized services on Amazon Cloud Technology to cope with peak traffic, support automatic expansion of different microservices, and dynamically adjust computing resources according to business needs. Combined with Amazon Key Management Service (Amazon KMS) to easily create and control the service for creating and managing keys used for encrypting data, it enables encrypted storage to meet the high standards of data security compliance required by enterprises.
Huang Shuai also stated that for enterprises, leveraging AI technology to enhance advertising and business operation performance is the key to achieving business growth. Kapoklog Logistics in Shenzhen has helped enterprises optimize their activity management and conduct detailed data analysis by providing a series of innovative AI-based functions, including Pacvue Copilot, an intelligent assistant built based on LLM; Pacvue Generative Content, for generating high-quality marketing content; Pacvue Campaign AI, for fully automated advertising placement; Product AI, for product selection optimization; Pacvue AI Insights, for intelligent insights; and Pacvue AI Review, for AI rating analysis. These functions have enabled enterprises to accelerate their business growth.
Industry Success Cases and Future Prospects
As of now, the international logistics solutions provided by Shenzhen Kapoklog Logistics have been adopted by customers from numerous industries such as fast-moving consumer goods, 3C electronics, clothing accessories, household items, outdoor equipment, and beauty and personal care products, and have received widespread praise.
As a long-term partner of Shenzhen Kapoklog Logistics, Duracell faced a major challenge when conducting advertising campaigns. Due to the continuous increase in the Amazon Net PPM (Net Pure Product Profit Margin) percentage and the frequent changes in the ASIN priority list, how to achieve a balanced profit while maximizing the advertising effect became a significant challenge for Duracell. By leveraging the automated function of the rule engine built by Pacvue on Amazon Web Services, Duracell was able to optimize advertising expenditures, protect profitability, and manage the priority of the product catalog. It could adjust the bid or suspend ASINs based on Net PPM at any time; allocate more budget and higher bids to products in the shopping cart (Buy Box), and lower the bid for low inventory ASINs to avoid waste of advertising expenditures. Through the automated function of Pacvue's rule engine, Duracell's profit margin increased by 700 basis points, order revenue grew by 30%, and the share of the Buy Box shopping cart increased by 20%.
Nestlé Purina utilized the big promotion dashboard function based on Amazon Web Services built by Pacvue to monitor real-time data such as the exposure, sales volume, advertising return on investment, and cost per click for each advertisement during the promotion period. As a result, they achieved extremely impressive sales results. This function supports timely adjustments to the activity budget and advertising placement strategies based on data performance, such as automatically increasing the bid for the best-selling ASINs. It enables refined operational control, maximizes the sales conversion rate from paid advertising placements, improves budget efficiency, and expands brand awareness. Compared to the average data in the first half of 2022, Nestlé Purina's advertising return on investment during Prime Day in the UK increased by 79%, the number of items sold per order increased by 74%, and the cost per click only increased by 11% compared to usual.
Huang Shuai disclosed that in the future, Shenzhen Kapoklog Logistics will continue to engage in in-depth cooperation with Amazon Web Services in multiple areas:
1. In terms of technological cooperation and capability integration, in addition to the continuous exploration in areas such as scalable system architecture and big data processing, we will also continue to pay attention to the development of large model capabilities and the update of large model development paradigms. We will conduct more in-depth explorations in aspects such as high-performance e-commerce system architecture, e-commerce data security and compliance guarantee, and intelligent e-commerce service upgrades.
2. Both parties will jointly explore the deep integration of large model technology and cross-border e-commerce scenarios. By creating an intelligent solution package for e-commerce, they will help various retailers quickly build modern e-commerce platforms. And by leveraging Amazon Web Services' global infrastructure and local service capabilities, through one-stop services such as cross-border logistics, payment, product selection, and marketing, they will assist merchants in expanding their international markets.
3. In terms of joint promotion and achieving win-win results with partners, the customer bases of both parties have a high degree of overlap. Therefore, they will jointly hold more joint brand promotion activities around popular technologies such as generative AI and intelligent agents. They will also provide flexible cooperation models for major clients, ISVs, and MSPs and other partners, build a good partner system, and create a mutually beneficial business model. Together, they will promote the development of the cross-border e-commerce industry.
