Temu and USPS's New Regulations Take Effect, Monthly Costs Surge for Small and Medium Sellers

1. Amazon's Budget Mall "Haul" Joins Prime Day for the First TimeAmazon's 2025 Prime Day will run from July 8 to 11, and its newly launched budget platform "Amazon Haul" is making a strong debut — offering a 40% discount across all categories on the first day, plus daily coupons of $5 off $50 and $10 off $75 purchases. Some products will see discounts as high as 50%. This bold entry could reshape the cross-border e-commerce price war landscape.

2. Temu & USPS Rule Changes Drive Up Costs for SMBsRecent policy changes by Temu and USPS restrict non-partner warehouses from using Ground Advantage, while increasing shipping label fees by about $1 per order. Small and mid-sized sellers face a monthly cost increase of several thousand dollars. Sellers are advised to use certified or hub warehouses, monitor storage and value-added service fees, and consider shipment consolidation to optimize costs. Strengthening supply chain resilience is crucial for the long term.

3. Revenue Drop for European SMBs as Amazon DominatesDespite overall online spending growth in Germany, Austria, and Switzerland, research shows a 9% YoY drop in median revenue for small online retailers. Consumers favor platforms offering free shipping and returns. Amazon further solidified its lead with $39.6 billion in revenue and 8.7% growth — its market share in Austria exceeds 40%. While Amazon claims to help SMBs go global, competition in ads and logistics squeezes local sellers' survival space.

4. Amazon Sells 4,700 Boneless Sofas a Month as Product Goes ViralBoneless vacuum-compressed sofas have gone viral on TikTok for their space-saving design, especially appealing to small-home users. Videos on the product have surpassed 20 million views, with Amazon selling 4,700 units monthly. Chinese suppliers are cutting ocean freight costs via vacuum tech, with orders booked through year-end. A single factory reports monthly sales of 75,000 units. TikTok, Instagram, and YouTube influencers are fueling demand, with Google Trends showing rising interest in five Western countries.

5. TikTok Becomes Fastest-Growing Platform for Luxury DiscoveryResearch reveals TikTok is the fastest-growing platform for luxury brand discovery: 38% of users first encounter luxury brands via creator content, and 32% via user-generated content. Comment discussions surged 113% YoY, making the platform a vital space for product authenticity checks, sizing advice, and purchase decisions. TikTok is evolving into a full-funnel shopping ecosystem connecting brands with consumers.

6. Amazon to Build Three New Logistics Centers in MexicoAmazon Mexico announced an investment of over $500 million to build three new logistics centers in Nuevo León, Jalisco, and the State of Mexico. The expansion is expected to create 6,000 direct and 12,000 indirect jobs and enable 48-hour delivery for 85% of the country, with same-day delivery available in multiple cities.

7. eBay Announces USPS Shipping Fee Hike from July 13eBay announced that USPS will adjust shipping rates starting July 13, including a $4 surcharge for non-standard packages. First-Class Mail and eBay Standard Envelope will cost $0.74 for 1oz. Since eBay's GMV includes shipping costs, this fee hike may boost GMV figures without actual sales growth, potentially impacting quarterly earnings reports.

8. Amazon Opens Five New Fulfillment Centers in India Ahead of Prime DayAhead of Prime Day 2025, Amazon has launched five new fulfillment centers in India, operated by top logistics partners and now fully functional.

9. Shopee Launches “Flexi Export” Program for Indonesian MSMEsShopee has launched the “Flexi Export” program to empower Indonesian micro, small, and medium enterprises with more autonomy in overseas operations. Currently piloting in Malaysia, the program offers two modes: the traditional Shopee-managed model, and a new seller-controlled model with no additional platform fees. However, sellers bear the cost of self-marketing.

10. Yandex Market Extends 5% Storefront Fee Discount to End of 2027Yandex Market will maintain a 5% listing fee for all storefront sales through the end of 2027, across all product categories. Incentives apply if a buyer subscribes and purchases again within six months, even if not via the storefront. Upcoming updates will enhance promotional tools, featured products, and user reviews.

11. Shopee’s New Fees Spark Controversy in VietnamShopee has imposed a 3,000 VND “platform infrastructure fee” per successful order in Vietnam, sparking backlash from small merchants. Similar charges exist on TikTok and Lazada but are often unilaterally implemented. Vietnam's Ministry of Industry and Trade is now reviewing the policy, and experts suggest a legal framework similar to telecom regulation for future platform fee governance.

12. Amazon to Shut Down Freevee, Integrate Content into Prime VideoAmazon will shut down its free streaming service Freevee in August. Freevee's ad-supported content will be merged into Prime Video. Prime Video standalone subscriptions cost $9/month with ads or $11/month ad-free. The move consolidates Prime Video as Amazon’s core video platform.

13. Mercado Libre Again Named One of TIME’s Most Influential CompaniesTIME Magazine has again included Latin American e-commerce giant Mercado Libre in its list of the World’s 100 Most Influential Companies, making it the only company from the region. With over 100 million buyers, $200 billion in annual payment processing, and 60 million monthly fintech users, Mercado Libre is also supporting SMBs through $24 billion in loans.

14. AliExpress to Hold Five Major Sales Campaigns in July–AugustAliExpress will launch five sales events across July and August, including monthly Choice Day campaigns, seasonal category events, and Getaway Deals in mid-July. Choice Day and Getaway Deals are full-category promotions, while other events are category- and country-specific. The August Choice Day will target semi-managed products.

15. Southern Europe Leads Global E-Commerce GrowthFrom 2024 to 2029, Spain, Portugal, and Greece are expected to post annual e-commerce growth rates between 9.4% and 9.9%, outperforming the global average of 8.1%. Local players such as Inditex, El Corte Inglés, and Skroutz are key to the ecosystem's long-term development. Italy and Cyprus, however, show below-average growth.

16. DIY Home Improvement Booms in Russia, E-Commerce Gains GroundA Wildberries study found that 55% of Russian buyers of construction goods consider DIY a hobby, with 26% calling it their main passion. Online platforms are gaining traction due to time efficiency, vast product selection, and convenient delivery. Wildberries attributes the surge in professional buyers to expanded inventory, including premium tools and imported materials.

17. Wildberries Launches Free Custom Promo Tool for SellersWildberries has rolled out a free “Article Replacement” service for sellers across Russia, Belarus, Kazakhstan, and Kyrgyzstan. The tool allows sellers to create tailored ad content for external marketing channels and track conversion rates. Sellers can access it via the “Services” section and generate customized campaigns for each product.

18. Axian Telecom in Talks to Acquire African E-Commerce Giant JumiaAxian Telecom is in talks to acquire Jumia Technologies, Africa’s largest e-commerce platform, in a bid to boost its fintech presence. Jumia, with a current valuation of ~$500 million, has seen its stock drop over 90% from peak levels. Amid pressure from Chinese competitors like Temu, Jumia is pursuing cost-cutting and aims to reach breakeven by 2027. The acquisition could lead to Jumia delisting from the NYSE.

19. World’s First AI Fashion Shopping Assistant “Daydream” LaunchesDaydream, an AI-powered conversational shopping platform founded by retail veteran Julie Bornstein, has officially launched. It enables users to search for fashion items via natural conversation and upload photos for personalized suggestions. Partnering with over 200 brands and offering 2 million items, Daydream supports end-to-end discovery and shopping.

20. Chinese Babycare Brand Achieves 50% Repurchase Rate in JapanChinese mother & baby brand Babycare is gaining traction in Japan through both online and offline channels. Its products — including anti-fall pillows, temperature-sensitive spoons, and water bottles — are driving strong repeat purchases, with repurchase rates reaching 50% on Japanese e-commerce platforms.