Pinduoduo to launch cross-border e-commerce platform in the US in mid-Sept

August 18, 2022 0 Comments

Chinese e-commerce platform Pinduoduo is preparing to launch a cross-border e-commerce platform in the US in mid-September, news outlet LatePost reported on Wednesday. Pinduoduo is known for its cut-to-the-bone price offerings through social media sharing in China. 

Currently, the platform is attracting merchants to join through preferential policies such as “0 enrollment fee, 0 commission”.

According to LatePost, Pinduoduo’s cross-border e-commerce business will operate similarly to SheIn. Instead of dealing directly with customers, sellers submit products to Pinduoduo for review. Once selected, Pinduoduo will list the products on the cross-border e-commerce platform, and the order will also be fulfilled by the platform.

It is in this way that SheIn, a Chinese fast fashion retailer, has effectively shortened the production cycle, lowered prices, and quickly opened up overseas markets. It overtook Amazon in 2021 to become the most downloaded shopping app in the US.

Since May of this year, 80 Pinduoduo supply chain workers have been relocating to Guangzhou’s Panyu district, a hub for the garment industry. SheIn’s supply chain center is likewise situated in Panyu.

Unlike Shein, which opens overseas markets with affordable trendy apparel, Pinduoduo plans to enter the US market with low-priced household essentials and home textiles.

Due to the high cost of international logistics and last-mile delivery in the US, Pinduoduo, a company that specializes in selling low-priced products, will face significant challenges in the country. How to raise the per-customer transaction to cover logistics costs may be the first problem that Pinduoduo has to face.

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