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In China’s digital economy, involution (内卷) has become the word of the era, and no industry feels it more than eCommerce. The country’s once-booming online shopping sector has matured into an overcrowded battlefield where margins are razor-thin, and price wars are the default strategy.
To escape this chaos, thousands of Chinese sellers turned their eyes outward, hoping that “going overseas” (出海) would unlock growth and profitability. Platforms like TikTok Shop, Amazon, Temu, and SHEIN became the new frontiers.
But in 2025, going overseas is no longer a guaranteed win. The exact same sellers who fought each other at home are now battling abroad, a phenomenon the Chinese media now calls “overseas involution” (出海內卷): involution, exported.
China’s domestic eCommerce market hit ¥12 trillion (US$1.65T) in sales in 2024, making up over 27% of total retail activity. But growth has slowed to single digits, and competition is fiercer than ever.
Under pressure to win business from a finite pool of consumers, China’s major platforms (Alibaba’s Tmall/Taobao, JD.com, Pinduoduo, etc.) engaged in relentless price wars and aggressive promotions. Sellers, in turn, saw their profit margins evaporate as they raced to offer the lowest prices and deepest discounts.
Many vendors are “selling at a loss” just to stay visible, for instance, some merchants on the bargain platform Pinduoduo have operated in the red for two years straight. Generous return policies, such as free return shipping, introduced to entice shoppers, have backfired on sellers, driving return rates sky-high.
As some Chinese veteran merchants described, there is no growth anymore, but only competition. To survive, many sellers began saying: If you don’t go overseas, you’re out (不出海就出局) .
Faced with an oversaturated home market, Chinese eCommerce sellers have set their sights abroad. What started as a survival tactic has now become a default strategy. In 2023, the number of Chinese companies expanding internationally grew by 23% year-over-year.
By 2024, China’s cross-border eCommerce trade hit ¥2.63 trillion (US$360 billion), a 10.8% increase from the year prior. It’s clear that going global has become the norm.
Meanwhile, Chinese platforms themselves have gone global. TikTok Shop, Temu, SHEIN, and AliExpress are known as the four major Chinese cross-border eCommerce platforms.
For Chinese e-commerce businesses, these platforms and channels represent new frontiers of growth. “They have the money. They have the experience… And it’s so tough domestically. So why not go overseas?” says Lin Zhang, an e-commerce researcher, explaining how saturation at home spurred firms to look abroad.
Many Chinese entrepreneurs envisioned overseas markets as a blue ocean, which is vast and less contested compared to the home market. Reality has been more complex. Many note that the same problems of product homogenization and price wars have quickly cropped up abroad. Instead of a relaxed blue ocean, some have found themselves in a red ocean of intense competition overseas.
Platforms like Amazon have become major battlegrounds. By 2024, more than half of the top Amazon marketplace sellers were from China. These sellers often undercut each other to win the Buy Box, driving prices down and profits thinner. In 2021, Amazon banned over 50,000 Chinese seller accounts because of fake reviews, a sign of how fierce and desperate the competition had become.
Meanwhile, Chinese platforms are also clashing overseas. The rivalry between Temu and SHEIN in North America is a clear example. Both target budget-conscious Gen Z shoppers with low-price strategies. By late 2023, Temu’s aggressive pricing slowed SHEIN’s U.S. user growth to single digits. Even AliExpress, which once dominated parts of Europe, is now defending its turf against new Chinese challengers. As Chinese media puts it: sellers are constantly fighting for territory, users, and sales.
On managed platforms like Temu, sellers face even tighter control. In 2023, Temu notified merchants that they must participate in low-price bidding competitions: the lowest-priced seller wins exposure, while others get their products de-listed or unsold
Unsurprisingly, most cross-border sellers are barely breaking even. A Chinese eCommerce insider suggested that there might be fewer than 20% sellers who are truly profitable. In some high-margin niches like beauty, only branded players can sustain margins over 30%. Others are just fighting to stay alive.
Beyond pricing pressure, cultural and regulatory missteps also pose risks. Aggressive Chinese marketing styles and the 996 work culture can clash with local norms. Sellers unfamiliar with product regulations, like safety standards or ingredient rules, may face takedowns or customs issues in markets like the U.S. and Europe.
In short, what we’re seeing is “overseas involution”: Chinese sellers flooding new markets with lookalike products and racing to the bottom on price.
Some industry leaders warn that this behavior is not just unprofitable, but also harmful to China’s reputation abroad. If Chinese brands become known only for being the cheapest, with poor quality and unsustainable tactics, it may narrow the global path for everyone.
Increasingly, industry leaders and successful sellers are coming to the same conclusion: the only real way out of the overseas involution trap at home or abroad is to build genuine brand value and differentiated products. Many Chinese companies are now shifting their focus to brand-building as the key to breaking out.
What does this mean in practice? Here are a few ways Chinese e-commerce sellers and brands are distinguishing themselves to escape the churn of price competition:
The most straightforward way to avoid being copied and undercut is to offer something unique. Companies that develop their own designs, technology, or intellectual property gain a protective moat. We see this with firms like DJI (drones) or CATL (batteries) in their sectors, but even consumer goods companies can innovate.
For example, toy maker Mould King realized it needed to abandon the pure low-price strategy and create more distinctive, tech-infused toys. It started producing smart building block sets with unique designs. The result: one of its new tech-enabled toys saw sales explode, achieving a 10x increase in daily orders on AliExpress.
Branding is about creating consumer trust and preference that goes beyond a single transaction. One standout case is Anker, a Chinese electronics seller turned global brand. Rather than joining the bottomless price war in electronics, Anker consistently focused on quality, user-driven innovation, and sleek marketing for its chargers, power banks, and gadgets.
Over the years, Anker has built a reputation internationally as a reliable, premium brand. This strategy paid off: in the first three quarters of 2024, Anker’s revenue reached ¥16.45 billion, up 39.5% year-on-year. Similarly, fast-fashion giant SHEIN – while known for low prices – differentiated itself through branding elements like constant new styles, influencer campaigns, and a customer-savvy image, which helped it build a global following that is harder for copycats to replicate.
After years of “sell cheap at all costs” mentality, many Chinese sellers are learning that quality and service are crucial for long-term success overseas. During China’s 2024 Singles’ Day, major domestic e-commerce platforms pivoted to de-emphasize lowest prices, instead highlighting genuine product quality and after-sales service.
The lesson applies abroad too: brands that ensure reliable product quality, compliance with local standards, and responsive customer service will stand out among a flood of low-cost, low-repute sellers. Some Chinese brands now proudly advertise their “Made in China” quality and obtain international certifications to build trust with foreign consumers. Providing local return options, reasonable warranties, and English-speaking support are also ways a seller can differentiate from the faceless drop-shipper image.
Standing out overseas often means getting closer to the customer, adapting to local cultures, tastes, and norms. Chinese companies are learning to avoid a one-size-fits-all approach. Cultural missteps can be costly, so many forward-looking firms now hire local marketers or consultants when expanding to a new country.
For instance, many Chinese bubble tea chains expanding abroad found success by tailoring flavors to local preferences and marketing their shops as trendy cultural experiences, not just a cheap drink. eCommerce sellers must also research and respect local consumer preferences. For instance, a beauty products exporter should note that popular shades or formulations differ between, say, the U.S. and the Middle East; a fashion seller should adapt sizing and styling to each region.
This logic extends to complying with local regulations, from product safety laws to tax codes, which builds a reputation as a trustworthy seller. As an example, cosmetics exporters from China have a huge opportunity abroad, but they must navigate strict ingredients and labeling rules in each country; those who master this earn credibility and avoid disruptions.
Many small Chinese merchants began by simply hawking products on big platforms like Amazon, eBay, or AliExpress. But an emerging strategy is to establish independent direct-to-consumer channels, and essentially, create your own storefront and brand identity.
Building your brand independently is tough, but it’s worth the effort. Take Halara, a Hong Kong-based activewear brand launched in 2020. It began with social media buzz, especially on TikTok, and quickly went viral.
Instead of relying solely on marketplaces, Halara launched its own Shopify-powered online store, invested in its own packaging, and built a distinct brand identity with strong imagery and community. By cementing a direct connection with customers, Halara gained control over its pricing, customer data, and marketing. It even opened its first pop-up store in New York City in 2024.
Today, many Chinese sellers are following a similar path: using their initial marketplace traction to launch Shopify or other self-managed online stores, develop branded packaging, and grow independent channels that go beyond price competition.
Not every Chinese seller has to pile into the U.S. Amazon or the UK fast fashion market. Some are strategically turning to emerging markets and untapped niches where competition is lighter. For example, Southeast Asia, Latin America, and the Middle East are witnessing e-commerce booms with double-digit growth, which can be “blue oceans” compared to the crowded Western markets.
Chinese firms are also partnering with local distributors or even setting up local operations to secure first-mover advantage in these regions. Similarly, focusing on a specialized niche product globally can be wise; for instance, a Chinese kitchen gadget maker could dominate that category via quality and word-of-mouth among enthusiasts, rather than selling generic gadgets in a crowded field. The goal is to avoid directly facing dozens of identical Chinese sellers and instead create your own lane.
China’s eCommerce sellers have made their mark globally, but the era of easy wins is over. As the “go overseas” wave matures, what was once a gold rush has turned into a crowded battlefield shaped by overseas involution, where copying formulas and undercutting prices no longer works. Success now depends not on how far you go but on how well you adapt. Sellers who build strong brands, invest in product quality, and understand local markets will move from survival to sustainable growth. The real opportunity isn’t in being the cheapest; it’s in being different, trusted, and valuable. In this new phase, going global is not the goal but the starting point.
At eCOMMop, we help ambitious sellers turn strategy into action. Whether you’re scaling on Amazon and TikTok, or building your own branded Shopify store, we provide full-service support from platform growth to brand development.
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Ecommop is a full‑service ecommerce operation agency for Amazon FBA and TikTok Shop. Our performance‑driven team handles product sourcing, listing optimization, content and livestream management, PPC advertising, influencer campaigns and end‑to‑end fulfillment. With experts in Italy, North America, Hong Kong and China, we combine regional insights and operational excellence to scale your brand worldwide.
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