A wave of cross-border companies have gone out of business or shut down operations, putting the low-price, high-volume model under strain

Some cross-border e-commerce companies have gone out of business or shut down operations. The material attributes their exits to pressure on profits and cash flow from price competition and rising logistics and compliance costs. In the first half of 2026, 8 of the 18 cross-border e-commerce companies listed by AMZ123 reported a decline in net profit; the material cites Tianyancha data showing that more than 16,000 cross-border e-commerce-related companies had newly registered as of July 2026. It stresses that an increase in registrations does not mean higher profitability or survival rates, and cites the growth in performance at Anker Innovations and UGREEN to illustrate the business value of brand building, R&D, and supply chain capabilities.