India’s e-commerce enablement company Shiprocket has entered the final day of its initial public offering with strong investor demand, putting one of the country’s best-known logistics technology companies on course for a closely watched stock-market debut.

The IPO opened on August 12 and closes on August 14, with Shiprocket shares expected to begin trading on the BSE and NSE on August 19. The company has established a price band of ₹92 to ₹97 per share for an issue worth approximately ₹1,617.5 crore at the upper end of the range.

Investor demand accelerated significantly during the final day. According to Economic Times data, as of 12:18 IST on August 14, the offering had been subscribed 18.12 times overall. Non-institutional investors had subscribed 35 times their allocated portion, retail investors 24.66 times and qualified institutional buyers 7.26 times.

The figures represent a sharp acceleration from the end of the second day, when the IPO stood at 3.16 times subscribed overall. Retail demand had already been particularly strong at that stage, with the retail portion subscribed 9.77 times.

Shiprocket aims to raise around ₹1,617.5 crore

The Shiprocket IPO combines a fresh share issue with an offer for sale by existing shareholders.

Approximately ₹885.5 million? No — ₹885.5 crore of the offering comes from newly issued shares, while around ₹732 crore is being offered by existing shareholders. This brings the total IPO size to approximately ₹1,617.5 crore.

The distinction is important. Money raised through the fresh issue will go to Shiprocket and can be invested in the company, while proceeds from the offer-for-sale portion go to the shareholders selling their stakes.

Shiprocket has identified technology investment, marketing, business expansion, debt repayment and potential acquisitions among the areas where proceeds from the fresh issue may be deployed.

The company also secured ₹727.41 crore from anchor investors before the public subscription opened. According to Economic Times, roughly two-thirds of the anchor allocation was taken by 13 domestic mutual funds across 31 schemes.

At the upper price of ₹97, retail investors must bid for a minimum lot of 154 shares, equivalent to an investment of ₹14,938.

More than an e-commerce delivery company

Shiprocket's public offering is particularly relevant to the e-commerce industry because the business has expanded considerably beyond its original role as a shipping aggregator.

The platform connects online merchants with logistics providers while also offering services covering fulfilment, checkout, payments, cross-border shipping, marketing, omnichannel commerce, hyperlocal delivery and other merchant tools.

This effectively positions Shiprocket as infrastructure for e-commerce businesses rather than as a conventional parcel carrier.

The company works with third-party logistics providers including Delhivery, FedEx, Aramex, Xpressbees, DTDC and Shadowfax, allowing merchants to manage different delivery services through a single technology ecosystem.

As of the six months ending September 30, 2025, Shiprocket reported more than 145,000 active merchants and more than 97 million transactions processed through its platform. More than 8,500 of those companies were classified as high-volume merchants.

That merchant network gives the IPO significance beyond the performance of a single Indian technology company. Shiprocket sits at the intersection of several of the fastest-developing parts of e-commerce: D2C brands, small and medium-sized online merchants, marketplace selling, fulfilment technology and cross-border commerce.

Revenue reaches more than ₹2,000 crore

Shiprocket has also continued to expand its revenue.

Revenue from operations increased approximately 24% during the financial year ending March 2026, reaching ₹2,024.1 crore compared with ₹1,632 crore in FY25.

However, the company has not yet reached net profitability.

Shiprocket recorded a consolidated net loss of approximately ₹79.2 crore in FY26, slightly wider than the ₹74.4 crore loss reported in the previous financial year. EBITDA losses nevertheless narrowed to around ₹16.6 crore from ₹17.2 crore.

The financial picture therefore reflects a common challenge among technology-enabled e-commerce platforms entering the public markets: substantial revenue growth accompanied by continued investment in newer business segments.

Shiprocket's established domestic shipping operation is complemented by what the company describes as emerging businesses, including cross-border commerce, checkout services, marketing, hyperlocal delivery and other merchant solutions.

These newer businesses provide additional growth opportunities, but they also require continued investment before reaching the scale and profitability of the company's core operations.

Strong investor interest builds ahead of listing

Investor enthusiasm has also been visible outside the formal subscription process.

Early on the final day, Shiprocket shares were reportedly commanding a grey-market premium of around ₹37 over the upper IPO price of ₹97, equivalent to roughly 38%. Grey-market activity is unofficial and can change rapidly, however, meaning it should not be interpreted as a guaranteed indication of the eventual listing price.

Several Indian brokerages cited by Economic Times have also issued positive views on the offering, pointing to Shiprocket's position within India's growing e-commerce ecosystem, its merchant network and its ability to expand revenue across multiple services. Profitability remains one of the principal risks highlighted around the business.

The final subscription figures will ultimately provide a clearer indication of institutional demand once bidding closes.

Why Shiprocket's IPO matters for e-commerce

Shiprocket's market debut represents more than another Indian technology IPO.

The company has built its business around enabling thousands of merchants to access logistics and commerce capabilities that historically would have required relationships with multiple individual providers.

That model reflects a broader change taking place in e-commerce infrastructure.

Online sellers increasingly expect shipping, returns, fulfilment, payments, marketing, cross-border delivery and order management systems to work together. Platforms capable of aggregating those services can become an important layer between merchants, marketplaces, carriers and consumers.

Shiprocket is attempting to position itself within exactly that layer.

Its cross-border operations are particularly relevant as Indian merchants increasingly look beyond the domestic market. International shipping, customs support and integrated technology can lower some of the operational barriers that traditionally make international expansion difficult for smaller online sellers.

At the same time, the IPO will test whether public investors are prepared to value e-commerce infrastructure businesses primarily on growth, scale and future operating leverage while they remain loss-making at the net-income level.

What happens next?

The Shiprocket IPO closes on August 14.

The basis of allotment is currently scheduled for August 17, with refunds and the crediting of shares expected on August 18. Shiprocket is then scheduled to list on both the BSE and NSE on August 19, 2026.

With demand accelerating significantly during the final day, attention will now move toward the final subscription figures and the company's performance when trading begins.

For the e-commerce industry, however, the listing has broader significance. Shiprocket's journey from a shipping-focused technology provider into a wider commerce enablement ecosystem demonstrates how logistics technology companies are increasingly becoming integral infrastructure for digital commerce.

The response from investors suggests that the capital markets are paying attention too.

The post Shiprocket IPO Draws Strong Demand on Final Day of Bidding appeared first on Cross-Border Magazine.

Amazon has signed a global strategic supply agreement with warehouse automation specialist AutoStore, establishing a framework that could allow the e-commerce giant to deploy AutoStore technology across its international fulfillment network.

AutoStore announced the agreement on 13 August 2026 and set the commercial terms for Amazon to procure AutoStore products and automation solutions globally. However, AutoStore stressed that the agreement does not currently include any firm purchasing commitments.

The deal nevertheless represents a significant development for the warehouse automation sector, bringing together one of the world's largest e-commerce fulfillment operators and one of the most established providers of cube-based automated storage and retrieval technology.

A global framework for future Amazon automation

Under the agreement, AutoStore will have a framework through which Amazon can purchase its systems and solutions for facilities around the world.

The distinction between a supply agreement and an actual order is important. AutoStore has not disclosed any guaranteed volumes, deployment locations, investment values or implementation timetable.

Instead, the agreement effectively lays the commercial foundation for future procurement should Amazon decide to deploy AutoStore technology at additional fulfillment sites.

AutoStore described the agreement as a global framework covering its products and solutions, while confirming that no purchase commitments are included at this stage.

For Amazon, such an arrangement could provide another automation platform to support fulfillment operations as the company continues to invest heavily in warehouse robotics, artificial intelligence and automated inventory handling.

What is AutoStore?

Norway-founded AutoStore develops automated storage and retrieval systems designed around a dense cubic storage grid.

Rather than relying on conventional warehouse aisles and shelving, products are stored in bins stacked vertically inside a grid. Robots travel across the top of the structure, retrieving bins and delivering them to workstations where orders can be picked and processed.

The approach allows warehouses to store significantly more inventory within a smaller physical footprint while reducing the amount of manual movement required inside fulfillment centers.

AutoStore says it now has approximately 2,000 systems operating across 68 countries, serving retailers, logistics companies, industrial businesses and other fulfillment-intensive sectors.

The company increasingly positions its offering not simply as warehouse robotics, but as a broader fulfillment platform combining automation, software and AI.

Why Amazon's agreement with AutoStore matters

Amazon already operates one of the most technologically sophisticated logistics networks in the world.

Warehouse automation is central to that strategy.

The company has spent years developing and deploying its own robotic systems while also acquiring and working with external automation technologies. Robotics is increasingly used to move inventory, organize products, assist picking and packing processes, and reduce the amount of repetitive physical movement required from warehouse employees.

The AutoStore agreement suggests that Amazon is continuing to evaluate multiple technological approaches rather than relying exclusively on internally developed systems.

For AutoStore, securing a global procurement framework with a customer of Amazon's scale also provides significant strategic validation.

In its Q2 2026 report, AutoStore CEO Mats Hovland Vikse described the Amazon agreement as further validation of the company's strategic direction and of the relevance of its technology for major global customers.

E-commerce is accelerating warehouse automation

The agreement comes at a time when fulfillment automation is becoming increasingly important across the global e-commerce industry. Online retailers are under continuing pressure to process higher order volumes while simultaneously meeting increasingly demanding delivery expectations.

Customers now expect faster fulfillment, reliable inventory availability and greater visibility throughout the delivery process. At the same time, warehouse operators face rising labor costs and pressure to make better use of expensive logistics real estate.

AutoStore identifies continued e-commerce penetration, labor-cost inflation and increasing demand for operational efficiency as major structural drivers behind the long-term expansion of warehouse automation. Automated storage systems can potentially address several of those challenges simultaneously by increasing storage density, accelerating product retrieval and reducing repetitive warehouse movements.

AutoStore reports strong growth in 2026

The Amazon announcement coincided with AutoStore's second-quarter 2026 financial results. The company reported quarterly revenue of approximately $192 million, representing an increase of around 43% year on year. Order intake reached approximately $218 million, up around 45% compared with the same period in 2025. AutoStore's order backlog stood at approximately $596 million at the end of the quarter.

The company also reported a gross margin of around 72% and an adjusted EBITDA margin of approximately 45%. For the full 2026 financial year, AutoStore is currently targeting revenue of around $700 million. The company says it has also launched 14 new products and features during the past 12 months as it expands beyond its traditional core storage platform into additional warehouse automation applications.

Automation is becoming a competitive advantage in fulfillment

The wider significance of the agreement extends beyond Amazon and AutoStore. Fulfillment has increasingly become a competitive differentiator in e-commerce. Retailers are no longer competing only through product assortment and price. Delivery speed, order accuracy, inventory availability and returns processing can directly affect the customer experience.

That places growing pressure on warehouse infrastructure. Automation allows operators to increase throughput without necessarily increasing warehouse size or workforce at the same rate. For large international retailers and marketplaces, these efficiencies can become particularly important because improvements made across dozens or hundreds of fulfillment centers can translate into substantial operational savings.

The Amazon-AutoStore agreement therefore highlights the increasing strategic importance of warehouse technology within the global e-commerce ecosystem.

No confirmed Amazon deployment yet

Despite the potential scale of the partnership, the announcement should not be interpreted as confirmation of a major Amazon AutoStore rollout. Neither company has announced how many systems Amazon may acquire, which fulfillment centers could receive the technology, or how much Amazon could ultimately spend under the agreement.

AutoStore has explicitly stated that the framework does not contain purchasing commitments. Any future procurement would therefore represent a separate commercial decision. The agreement nevertheless removes part of the contractual groundwork that would otherwise be required for future deployments, potentially making it easier for Amazon to procure AutoStore technology across multiple markets.

What this could mean for global e-commerce fulfillment

Amazon's logistics operations have often influenced wider industry investment trends. Technologies deployed successfully at Amazon's enormous fulfillment scale can attract greater attention from retailers, marketplaces and third-party logistics providers seeking similar efficiency improvements. AutoStore says the majority of warehouses globally remain unautomated, suggesting significant potential for further expansion of automated fulfillment technology.

As e-commerce businesses look to shorten delivery times while controlling fulfillment costs, warehouse density and automation are likely to become increasingly important components of logistics strategy. For AutoStore, the new Amazon agreement provides access to potentially one of the largest automation customers in the world. For Amazon, it adds another proven technology platform to an increasingly sophisticated fulfillment ecosystem.

The immediate financial impact remains uncertain because no orders have yet been committed. But strategically, the agreement illustrates how quickly automation is becoming embedded in the infrastructure supporting global e-commerce.

The post Amazon signs global warehouse automation agreement with AutoStore appeared first on Cross-Border Magazine.

Oman has completed nearly 87% of its National E-Commerce Plan 2022–2027, marking another major step in the Sultanate’s efforts to strengthen its digital economy and establish itself as a regional e-commerce hub.

According to recent reports, 26 of the programme’s 30 initiatives had been completed by the end of 2025, corresponding to a completion rate of 86.7%. Four additional initiatives were delivered during the second half of 2025 alone.

The programme covers several areas considered essential for building a competitive digital-commerce ecosystem, including regulation, digital services, electronic payments, logistics, business facilitation and e-commerce awareness.

The remaining initiatives are expected to be completed before the National E-Commerce Plan reaches its scheduled conclusion in 2027.

Oman wants to become a regional e-commerce hub

The National E-Commerce Plan forms part of the wider Oman Vision 2040 economic transformation programme, through which the country is attempting to diversify its economy and reduce its dependence on traditional oil and gas revenues.

The e-commerce strategy is specifically designed to improve the environment for digital businesses and SMEs while strengthening the infrastructure required for domestic and cross-border online trade.

Oman's Ministry of Transport, Communications and Information Technology describes the national strategy as a programme aimed at empowering businesses, particularly SMEs, through better digital infrastructure, logistics services and electronic payment capabilities.

The plan covers eight main areas, including ICT infrastructure, transportation and trade facilitation, payments, digital skills, e-procurement and the legal and regulatory environment.

Progress has accelerated significantly

Implementation of the programme has accelerated over the past several years.

By the end of 2023, Oman had completed 14 of the 30 planned initiatives, representing approximately 46% of the programme. By November 2024, that figure had increased to 21 completed initiatives, or around 70%.

Current reporting now puts the number at 26 initiatives.

That means Oman has moved from completing fewer than half of the programme's initiatives in 2023 to completing almost nine out of ten within roughly two years.

The government aims to complete the entire programme by 2027.

Regulation and consumer trust are becoming increasingly important

Building infrastructure alone is not sufficient to develop a mature e-commerce market.

Oman has therefore also focused on creating a more formal regulatory environment for online merchants.

Previous initiatives under the programme have included measures aimed at regulating digital marketplaces, simplifying the registration of online businesses and developing mechanisms designed to increase consumer confidence in legitimate e-commerce operators.

This becomes increasingly important as more small businesses and entrepreneurs move from social-commerce channels into formal digital retail.

For international sellers, greater standardisation could also make Oman a more predictable market in which to operate, particularly when it comes to business registration, payments and marketplace compliance.

Digital payments support Oman's e-commerce expansion

Payments represent another important component of the country's digital-commerce strategy.

Oman's Ministry of Commerce, Industry and Investment Promotion recently reported significant growth in the use of digital payment methods during 2025, alongside continued development of fintech, digital banking and e-commerce infrastructure.

Improving payment infrastructure can remove one of the most persistent barriers to e-commerce adoption in developing digital markets.

It also makes the market more accessible to international merchants, payment providers and marketplaces looking to serve consumers in the Gulf region.

Logistics remains central to the strategy

Oman's ambitions extend beyond domestic online retail.

Its National E-Commerce Plan is designed to help position the country as a regional digital-commerce hub, making logistics and trade facilitation critical components of the programme.

Oman's geographical position between Asia, the Middle East and East Africa gives the country potential advantages as a logistics and distribution gateway.

For cross-border e-commerce operators, improvements to customs processes, addressing systems, logistics networks and digital trade infrastructure could therefore be as important as growth in domestic consumer demand.

China is already an important source market for goods purchased online by Omani consumers, particularly in categories such as furnishings, machinery and construction-related products, according to the US International Trade Administration.

A growing opportunity for cross-border sellers

The development of a more mature e-commerce ecosystem could gradually make Oman a more attractive destination for international retailers, marketplaces and logistics companies.

Industry estimates also point towards continued growth in the country's online retail sector. Mordor Intelligence estimates the Omani e-commerce market at approximately $3.26 billion in 2026 and forecasts it could reach $4.62 billion by 2031.

Market forecasts should always be treated as estimates rather than guaranteed outcomes, but the direction is consistent with the government's wider push towards digitalisation.

The broader ambition is significant. The IMF has previously noted that Oman wants the digital economy's contribution to GDP to increase from around 2% to 10% by 2040 as part of its economic transformation strategy.

What happens next?

With 26 of 30 initiatives now reported as completed, Oman is entering the final phase of its National E-Commerce Plan.

The remaining challenge will be translating government programmes into measurable commercial outcomes: more digital businesses, higher online sales, greater consumer trust, smoother cross-border transactions and stronger participation by Omani SMEs in international markets.

For international e-commerce businesses, Oman is unlikely to rival neighbouring Saudi Arabia or the UAE in market size in the immediate future.

Its importance may instead come from its position as an increasingly sophisticated digital market and potential logistics gateway connecting the Gulf with Asia and East Africa.

If Oman completes its remaining initiatives by 2027, the National E-Commerce Plan will provide an important test of whether government-led digital infrastructure programmes can successfully turn a relatively small Gulf market into a more significant participant in regional cross-border commerce.

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India’s Open Network for Digital Commerce (ONDC) has passed 500 million cumulative transactions, marking a major milestone for the country’s attempt to build an open and interoperable alternative to traditional e-commerce platforms.

The milestone was reached in July 2026, according to figures provided by India’s Department for Promotion of Industry and Internal Trade (DPIIT). ONDC has grown rapidly from around 200,000 transactions in the 2022–23 financial year to 218 million transactions during FY2025–26.

Unlike Amazon, Flipkart or other conventional marketplaces, however, ONDC is not itself an e-commerce platform. It provides the infrastructure through which different buyer applications, sellers, logistics providers and other services can interact.

That distinction is becoming increasingly important as ONDC expands beyond retail commerce into transport, logistics and other digital services.

What is ONDC?

ONDC was launched in 2022 as part of India's wider digital infrastructure strategy.

Rather than requiring consumers and sellers to operate within the same marketplace, ONDC is designed around interoperability.

A customer using one ONDC-connected shopping application can, in principle, discover and purchase products offered through a seller connected via another network participant.

The concept resembles the approach used by open digital infrastructure elsewhere in India, particularly the Unified Payments Interface (UPI), where banks and payment applications can interact using common standards.

India's government describes ONDC as an open network rather than an application, platform or marketplace. Its objective is to reduce dependence on individual digital platforms while making online commerce more accessible to smaller businesses.

More than 200,000 retail merchants are active on ONDC

By July 2026, more than 200,000 retail merchants were active on ONDC, while over one million service providers across mobility and logistics were associated with the network.

Earlier government figures showed ONDC reaching more than 200 million potential buyers, around 500,000 sellers and approximately 1,000 Indian cities by June 2026.

At that point, the network was handling close to nine million transactions per month.

The figures illustrate how rapidly ONDC has evolved from an experimental digital commerce initiative into a significant part of India's broader digital economy.

For smaller retailers in particular, the model is intended to provide online visibility without requiring them to become dependent on a single marketplace ecosystem.

India has also launched initiatives designed specifically to accelerate that process.

The DigiDukaan programme, for example, has reportedly onboarded more than 13,000 small kirana stores in Hyderabad and Jaipur, providing support to help traditional retailers participate in digital commerce.

ONDC is becoming more than an e-commerce network

One of the most important developments behind the 500 million transaction milestone is ONDC's expansion beyond conventional retail.

More than one million drivers are now participating in ride-hailing services connected to the network.

ONDC has also entered public transport. As of June 2026, it was facilitating more than 370,000 public transport journeys per day through more than 35 buyer applications.

The network covers nine metro systems and four urban bus transport operators, while approximately 80% of India's metro ticketing inventory is now available through ONDC.

This expansion demonstrates the broader ambition behind ONDC.

Instead of creating another online marketplace, India is attempting to establish a common digital commerce layer that can potentially support retail products, mobility, logistics, financial services and other transactions.

Logistics becomes increasingly important

Logistics is also developing into a significant part of the ONDC ecosystem.

More than 50 hyperlocal logistics providers are currently live on the network, while over 60,000 merchants are using ONDC Logistics.

More than 50 brands operating in areas including food delivery, quick commerce, pharmacy and general retail are also reportedly using the network for deliveries across more than 150 cities.

India Post has additionally been integrated as a logistics provider.

This could prove particularly important for smaller merchants located outside India's largest urban areas, where access to established fulfilment networks can be more limited.

A commerce network can only become genuinely open if sellers also have access to competitive payment and delivery services. Expanding the number of logistics providers available through ONDC therefore represents an important part of its development.

Small businesses remain at the centre of the strategy

Supporting small and medium-sized enterprises remains one of the government's main arguments for ONDC.

Large marketplaces typically combine customer acquisition, technology, fulfilment, advertising and payments within the same ecosystem.

That can provide enormous reach, but it can also make merchants highly dependent on the rules and fees of an individual platform.

ONDC attempts to separate these functions.

Sellers can theoretically connect with multiple buyer applications, while logistics providers, payment services and other companies can compete to provide different elements of the transaction.

India has approved ₹2.77 billion under the MSME TEAM initiative for FY2024–25 to FY2026–27 to help micro and small enterprises participate in digital commerce.

The programme provides assistance with onboarding, product cataloguing, account management, logistics and packaging, with 50% of the targeted beneficiary businesses expected to be women-owned enterprises.

Agriculture is also moving onto the network

ONDC's expansion is extending into agricultural commerce.

Through the Amazing India initiative, more than 800 independent sellers and eight aggregator organisations representing more than 1,500 Farmer Producer Organisations have joined the network.

Seven warehouses have also been established in cooperation with India Post and DGCPack.

The development points towards another potential use for open commerce infrastructure: connecting smaller producers directly with digital buyers without requiring them to build their own e-commerce operations.

Could ONDC become India's UPI for commerce?

The most ambitious comparison surrounding ONDC is inevitably UPI.

India's Unified Payments Interface transformed digital payments by allowing financial institutions and payment applications to communicate through common infrastructure.

UPI processed more than 24,000 crore transactions during FY2025–26 and has become one of the central components of India's digital economy.

ONDC is attempting something similar for commerce, although the challenge is considerably more complicated.

A payment transaction primarily requires the movement of money and information.

E-commerce requires product discovery, inventory management, pricing, fulfilment, delivery, returns, customer support, payments and dispute resolution to work across multiple participants.

Creating interoperability across that entire chain is considerably harder.

Crossing 500 million transactions therefore does not mean ONDC has already created an alternative capable of replacing India's largest marketplaces.

It does, however, demonstrate that open-network commerce is operating at increasingly meaningful scale.

What ONDC could mean for global e-commerce

ONDC is particularly interesting outside India because it offers a fundamentally different model for organising digital commerce.

Most of the global e-commerce economy is dominated by vertically integrated platforms. Amazon, Alibaba, Mercado Libre and other major marketplaces bring buyers and sellers together inside proprietary ecosystems.

ONDC proposes that commerce itself could instead become interoperable.

If the model continues to scale, buyers, merchants, fulfilment providers and technology companies may not necessarily need to belong to the same platform to transact with one another.

ONDC has already tested an international use case involving a Singapore buyer sourcing tea directly from India through an ONDC-enabled buyer network participant, suggesting that cross-border commerce could eventually become part of the network's expansion.

That development will be particularly important to watch.

India is one of the world's largest and fastest-developing digital commerce markets. If ONDC succeeds at scale, its biggest impact may eventually extend beyond the number of transactions taking place inside India.

It could provide the global e-commerce industry with a real-world test of whether open, interoperable commerce infrastructure can coexist with — or eventually challenge — the closed marketplace model that has dominated online retail for more than two decades.

The post ONDC passes 500 million transactions as India’s open commerce network scales appeared first on Cross-Border Magazine.

Cainiao has launched a new cross-border logistics service promising door-to-door delivery within three calendar days across 15 international routes.

The logistics company, which forms part of Alibaba Group’s e-commerce ecosystem, announced its “Global 3-Day Delivery” service on 5 August. Initial routes connect Hong Kong with destinations in Europe and the Middle East, while the network also covers selected intra-European and intra-Middle Eastern parcel flows.

The launch represents the latest stage in Cainiao’s long-term attempt to build a global 72-hour delivery network. It also shows how competition in cross-border e-commerce is increasingly moving beyond product prices and towards delivery speed, reliability and customer experience.

What is Cainiao’s Global 3-Day Delivery service?

Cainiao says the new service can deliver qualifying cross-border orders within three calendar days from the moment the consumer places the order.

This is an important distinction. Many international logistics providers calculate transit times from parcel collection, warehouse departure, or customs clearance. Cainiao’s promise is presented as an end-to-end service beginning when the customer completes the purchase.

The initial network covers 15 core routes. Cainiao has not yet published a complete country-by-country list, but it has identified three principal categories:

• Hong Kong-to-Europe routes
• Cross-border routes between European countries
• Cross-border routes between Middle Eastern countries

The structure suggests that Cainiao is not positioning the product exclusively as a China-to-Europe export service. Instead, it is building a wider global-to-global logistics network capable of moving parcels between international markets without every shipment passing through mainland China.

This could make the service relevant to regional marketplaces, independent online retailers and international brands, as well as sellers operating through Alibaba-owned platforms.

Cainiao targets international express carriers on price

Cainiao is also using aggressive pricing to differentiate the service from traditional international express delivery.

The company reportedly prices a 0.5 kg parcel sent to Europe at approximately RMB 62, equivalent to around $9.20. The average cost of comparable international express services was placed at approximately RMB 145, or $21.50. In that example, Cainiao’s service would cost less than half as much.

Actual prices will depend on the origin, destination, parcel dimensions, weight, and merchant agreement. Nevertheless, the example indicates that Cainiao wants to compete directly with established express operators rather than limiting the service to the slower, lower-cost parcel segment traditionally associated with cross-border marketplace orders.

Cainiao attributes the lower price to economies of scale, collaboration between its self-operated network and external logistics partners, and the use of artificial intelligence and digital systems to reduce operating costs.

The company already operates a substantial international logistics infrastructure. Its network includes around three million square meters of cross-border warehouse space, more than 380 sorting centers, approximately 170 charter flights and block-space agreements per week, and over 2,700 international line-haul trucking routes. It also works with service providers at more than 100 ports.

That scale gives Cainiao greater control over parcel consolidation, transport capacity, customs data and delivery handovers.

From ten-day delivery to a 72-hour network

Cainiao has been gradually reducing its international delivery promises for several years.

The company began expanding its global logistics network at scale in 2018. It introduced its Global 10-Day Delivery model in 2020, followed by Global 5-Day Delivery in 2023. The new three-day product is the next step towards the 72-hour global delivery objective Cainiao has promoted since its creation.

Its existing cross-border portfolio still includes slower services for merchants with different price and delivery requirements.

Cainiao’s standard international service generally promises delivery to key countries within 10 to 18 calendar days, although shipments to markets including the United Kingdom, France and Germany can arrive within seven days. Its economy service takes approximately 20 to 45 days and is designed primarily for low-value, lightweight products. A premium service previously offered delivery to markets including Spain, the Netherlands, the United Kingdom and Belgium within five to ten days.

The three-day product therefore sits above Cainiao’s existing premium option and brings the company closer to the delivery times offered by global express carriers.

Why delivery speed matters in cross-border e-commerce

Long delivery times remain one of the most persistent barriers to international online shopping.

Consumers may be attracted by a product’s price or availability, but many abandon the purchase when the estimated delivery date is several weeks away. Cainiao cited third-party research suggesting that 46% of global cross-border shoppers have abandoned a purchase because delivery would take too long.

Faster delivery can improve conversion rates, reduce uncertainty and make international purchases feel more similar to domestic e-commerce transactions.

For merchants, shorter transit times can also improve customer satisfaction and reduce the number of “Where is my order?” inquiries. Reliable delivery promises are particularly important for higher-value products, seasonal purchases and categories where consumers are unwilling to wait several weeks.

Cainiao Group Senior Vice President Xiong Wei said the industry is moving from a period in which access to products was sufficient to generate sales towards one in which the customer experience determines competitiveness. Under this model, logistics is no longer simply a fulfillment cost but a factor that can directly influence customer acquisition and retention.

A challenge to established logistics companies

The service increases competitive pressure on global express carriers, postal operators and specialist cross-border parcel companies.

Traditional express providers have historically justified premium prices through speed, international coverage, customs expertise and reliable tracking. Cainiao is now attempting to offer similar delivery times at prices more closely associated with e-commerce parcel networks.

However, consistently completing international deliveries within three calendar days will require precise coordination throughout the supply chain.

Orders must be processed quickly, export data must be accurate, parcels must reach the airport before transport cut-off times, customs clearance must be completed without delays and local delivery partners must have sufficient last-mile capacity.

The promise may also be more difficult to maintain during peak shopping periods, severe weather events, flight disruptions or changes in customs controls.

For that reason, service reliability will matter as much as headline speed. Merchants will judge the product not only by whether a three-day delivery is technically possible, but by how frequently Cainiao meets that promise across different destinations.

Europe becomes a central market for Cainiao

Europe is emerging as one of the most important regions in Cainiao’s international expansion.

The company has previously expanded five-day delivery services to European markets including Spain, Portugal, France, Germany, the Netherlands, Belgium and the United Kingdom.

Cainiao has also been developing country-to-country logistics services within Europe. Its European network supports parcel flows across 35 countries and territories, with selected services carrying a pan-European three-day delivery promise.

This approach could allow Cainiao to serve merchants that hold inventory inside Europe, rather than only transporting parcels directly from Asian sellers.

For European fulfilment providers and parcel carriers, the development creates both competition and partnership opportunities. Cainiao may operate parts of the network directly, but it will still depend on airports, customs intermediaries, line-haul operators and last-mile delivery companies in destination markets.

What the service means for online retailers

The new product could give cross-border retailers another option between slow postal delivery and expensive international express shipping.

For suitable products and destinations, merchants may be able to provide faster delivery without absorbing the full cost associated with established express carriers.

However, businesses should examine several details before adopting the service:

• Which origin and destination combinations are included
• Whether the three-day promise is guaranteed or estimated
• When the delivery clock officially begins
• What compensation applies when shipments arrive late
• Which product categories, parcel sizes and values are eligible
• Who is responsible for duties, taxes and customs documentation
• How returns and undeliverable parcels are managed

Retailers should also avoid advertising a universal three-day service unless every relevant postcode and product combination is covered.

Cross-border logistics enters an experience-driven phase

Cainiao’s launch demonstrates how rapidly international e-commerce logistics is evolving.

The first generation of cross-border marketplaces competed primarily through enormous product selections and very low prices. Delivery could take several weeks because customers accepted slower shipping in exchange for savings.

That trade-off is becoming less acceptable as platforms attempt to attract mainstream consumers and sell higher-value products.

Cainiao’s Global 3-Day Delivery service is designed to close the experience gap between domestic and international online shopping. If it can consistently deliver parcels within 72 hours at approximately half the price of traditional express shipping, it could become a significant advantage for the merchants and marketplaces using its network.

The immediate launch is limited to 15 routes, and Cainiao has yet to disclose the complete list of markets covered. Nevertheless, the direction is clear: cross-border e-commerce competition is no longer focused solely on who can sell products at the lowest price.

Increasingly, it will be determined by who can deliver those products most quickly, reliably and affordably.

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CEVA Logistics has completed the acquisition of Paack Iberia and Paack France through its B2C delivery subsidiary, Colis Privé, extending its last-mile delivery operations into Spain and Portugal while reinforcing its position in France.

Paack confirmed that the transaction had closed and that its Iberian and French businesses had joined the CMA CGM Group, the parent company of CEVA Logistics. The completion follows the exclusive negotiations announced by CEVA on 30 June 2026.

The acquisition represents another step towards CEVA’s ambition of creating a stronger pan-European last-mile delivery platform capable of serving e-commerce retailers across multiple domestic markets.

CEVA enters the Spanish and Portuguese last-mile markets

The transaction covers two independently operated businesses: Paack Iberia, which serves Spain and Portugal, and Paack France. Through the acquisition, Colis Privé gains an established presence in the Iberian Peninsula rather than having to build a delivery network from the ground up. It also increases the company’s scale in France, where Colis Privé already operates a substantial B2C parcel network.

CEVA originally described the transaction as a way to strengthen Colis Privé’s domestic position in France while accelerating its expansion into Spain and Portugal.

Colis Privé previously concentrated its activities primarily in France, Belgium and Luxembourg. The addition of Paack therefore transforms it into a broader Southern and Western European last-mile operator. For e-commerce retailers, the enlarged network could offer more consistent delivery services across several important European markets under the same logistics group.

What CEVA is acquiring from Paack

Founded in Barcelona in 2015, Paack built its business around technology-supported delivery services for e-commerce companies and omnichannel retailers. Its platform manages several stages of the last-mile process, including delivery scheduling, parcel tracking, performance reporting, and returns management.

Paack has also differentiated itself through scheduled and time-slot delivery options. These services allow consumers to receive orders during more specific delivery windows, addressing one of the most common sources of dissatisfaction in online shopping: uncertainty over when a parcel will arrive.

The company combines its proprietary technology with a network of logistics hubs, delivery partners and local operations. Paack Iberia generated revenue of approximately €125 million in Spain and Portugal during 2025, representing reported year-on-year growth of 25%. It completed around 36 million deliveries during the year, 20% more than in the previous period.

Paack France generated approximately €49 million in revenue, an increase of 7.8%, and completed around 10.4 million deliveries. Both the Iberian and French businesses reported positive EBITDA. Combined, the two acquired operations generated approximately €174 million in annual revenue.

A last-mile business exceeding €550 million in revenue

CEVA previously estimated that the combination of Colis Privé and the acquired Paack businesses would create a last-mile organization generating more than €550 million in annual revenue. The enlarged operation will bring together Colis Privé’s existing delivery network and Paack’s infrastructure, technology and customer relationships.

Paack employed approximately 490 people across its French and Iberian businesses when the transaction was announced. Colis Privé, meanwhile, works with around 5,000 delivery drivers across its existing markets. The deal gives CEVA access to additional delivery capacity, local knowledge and operational infrastructure in three of Europe’s largest e-commerce markets.

However, the strategic value of the acquisition goes beyond parcel volumes. Paack’s proprietary technology could potentially be deployed across other parts of Colis Privé’s network, improving delivery visibility, route management and the consumer experience.

Why last-mile logistics is consolidating

Europe’s parcel-delivery market remains highly fragmented, with national postal operators, international carriers, regional specialists, locker networks and technology-led delivery companies competing for retailers and parcel volumes. At the same time, e-commerce businesses increasingly want logistics partners capable of supporting several markets through a single relationship.

Retailers selling across Europe must often integrate with different delivery providers in every country. This creates additional technical work, fragmented tracking data and inconsistent customer experiences.

A larger Colis Privé network could help CEVA offer retailers a more unified proposition covering fulfillment, transportation and final-mile delivery. The acquisition also reflects the growing importance of scale in parcel logistics. Last-mile operators must invest heavily in sorting facilities, delivery capacity, technology and consumer-facing services while operating in a market where delivery prices remain highly competitive.

Consolidation allows logistics groups to spread those investments across greater parcel volumes and a wider geographical network.

CEVA strengthens CMA CGM’s e-commerce logistics strategy

CEVA Logistics is part of the CMA CGM Group, which has steadily expanded beyond maritime transport into contract logistics, air freight, fulfillment and last-mile delivery.

CMA CGM acquired CEVA in 2019. CEVA subsequently completed the acquisition of Colis Privé in 2022, strengthening its e-commerce and final-mile capabilities in France. The Paack acquisition expands that strategy further by connecting CEVA’s global logistics capabilities with a wider European delivery network.

For CMA CGM, building an end-to-end logistics platform creates opportunities to manage more stages of the e-commerce supply chain. These can range from international transportation and customs clearance to warehousing, order fulfillment, returns and delivery to the consumer.

The group has also continued expanding through other major logistics transactions, including the acquisition of Bolloré Logistics and an agreement to acquire FedEx Supply Chain. Paack therefore becomes part of a much larger logistics ecosystem rather than operating solely as an independent last-mile specialist.

What the acquisition means for e-commerce retailers

The immediate impact for Paack customers is expected to be continuity rather than a sudden change in delivery operations.

Nevertheless, integration with CEVA and Colis Privé could gradually provide retailers with access to a broader geographical network and additional logistics services.

Potential advantages include:

• A larger last-mile network covering France, Spain and Portugal
• Greater capacity during peak e-commerce periods
• Access to CEVA’s international logistics and fulfillment services
• More consistent technology and delivery data across markets
• Expanded scheduled-delivery and returns capabilities

For international retailers, the most important benefit may be the ability to combine cross-border transportation, fulfillment and domestic delivery through fewer logistics providers. This model could be particularly attractive to retailers entering Southern European markets without their own local logistics infrastructure.

Integration will determine the deal’s success

Although the acquisition provides CEVA with immediate scale, its long-term success will depend on how effectively the companies integrate their networks, technology and commercial operations.

Last-mile delivery remains a complex and margin-sensitive business. Different countries have distinct labor models, delivery preferences, urban infrastructure and consumer expectations.

Spain and Portugal also differ from France in terms of geography, population density and delivery economics. CEVA will therefore need to preserve Paack’s local market knowledge while identifying areas where the businesses can share technology, capacity and operational processes.

Maintaining service quality during the integration will be especially important. Retailers and consumers are unlikely to judge the deal by the size of the combined network; they will judge it by delivery reliability, flexibility and visibility.

A step towards a pan-European delivery platform

The completion of the CEVA Paack acquisition demonstrates how Europe’s last-mile market is gradually moving towards larger, cross-border delivery networks.

By adding Paack’s operations in Spain, Portugal and France, Colis Privé gains both geographical reach and technology developed specifically for e-commerce delivery.

The deal also gives CEVA a stronger position in the final stage of the e-commerce supply chain, complementing its existing freight, contract-logistics and fulfillment operations.

The result is not yet a fully pan-European parcel network. However, it gives CEVA a considerably stronger platform from which to pursue that ambition.

As retailers look for simpler logistics relationships and more consistent cross-border delivery experiences, the ability to connect international supply chains with local last-mile operations could become one of CEVA’s most important competitive advantages.

The post CEVA completes Paack acquisition to expand its European last-mile network appeared first on Cross-Border Magazine.

Lancashire-based fulfillment technology provider fulfilmentcrowd has been shortlisted in two categories at the Lloyds British Business Excellence Awards 2026, receiving recognition for both its workplace culture and international expansion.

The company has been named a finalist for Employer of the Year and the Department for Business & Trade International Expansion Award.

The nominations come during a record-breaking year for award entries and recognize fulfilmentcrowd’s continued investment in employee development, international logistics capabilities and technology-led cross-border fulfillment.

Recognition for fulfilmentcrowd’s workplace culture

The Employer of the Year category recognizes organizations that have created strong workplace cultures while demonstrating a long-term commitment to employee development and progression.

For fulfilmentcrowd, the nomination reflects more than 30 years of investment in structured career development, internal promotion, flexible working practices and long-term employment opportunities.

Almost half of the company’s employees have worked for fulfilmentcrowd for more than five years. The average employee length of service is nine years, while the company’s longest-serving team member has been with the business for 40 years.

These figures highlight the company’s focus on employee retention and the development of long-term careers within the fulfillment and logistics sector.

International expansion recognized

fulfilmentcrowd has also been shortlisted for the Department for Business & Trade International Expansion Award.

The category recognizes British companies that have successfully expanded into international markets and demonstrated sustainable global growth.

fulfilmentcrowd supports omnichannel retailers through its proprietary fulfillment technology and international warehouse network. Its platform enables businesses to manage inventory, orders and fulfillment operations across multiple markets.

The company’s international expansion strategy has focused on helping retailers simplify cross-border fulfillment while bringing inventory closer to customers.

By combining in-house technology with a distributed logistics network, fulfilmentcrowd aims to help brands reduce delivery times, improve inventory visibility and scale into new markets without building their own international fulfillment infrastructure.

Investment in people and technology

Paul Taylor, Managing Director at fulfilmentcrowd, said being recognized in two categories reflected the contribution of the company’s employees, customers and logistics partners.

“To be recognized as finalists in two categories at the Lloyds British Business Excellence Awards is an incredible honor,” Taylor said.

“These nominations reflect the dedication, expertise and ambition of our entire team, as well as the trust our customers and partners place in us every day.”

Taylor said the Employer of the Year nomination was particularly significant because employee development had remained central to the company’s growth.

“We’re especially proud to be recognized as an Employer of the Year finalist, because our people have always been at the heart of everything we do,” he said.

“Creating opportunities for colleagues to grow and build long-term careers has been central to our success, and this recognition belongs to every member of the fulfilmentcrowd team.”

He added that the company’s International Expansion nomination reflected its progress in helping retailers enter and grow within international markets.

“Our International Expansion nomination is equally rewarding, reflecting the progress we’ve made in helping ambitious retailers grow globally while continuing to expand our own international presence,” Taylor said.

Supporting British business growth

Amanda Murphy, CEO of Lloyds Business and Commercial Banking, said the awards celebrate companies demonstrating ambition, determination and innovation.

“Behind every successful business is a story of ambition, determination and innovation,” Murphy said.

“fulfilmentcrowd is bringing new ideas, investing in its community and helping drive growth in the UK. They represent the very best of British enterprise, and we’re incredibly proud to back them.”

Winners to be announced in London

The winners of the Lloyds British Business Excellence Awards 2026 will be announced during a gala ceremony at Grosvenor House in London on Tuesday, 10 November 2026.

The event is expected to bring together approximately 1,200 business leaders from across the UK.

Award winners will also be invited to ring the opening bell at the London Stock Exchange and will be recognized during the program’s annual reception at the House of Commons.

For fulfilmentcrowd, the dual nomination provides recognition of both sides of its growth strategy: building an experienced and committed workforce while expanding its technology-enabled fulfillment services internationally.

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ESW has launched a new agentic commerce solution designed to help international brands make their products discoverable, purchasable and operationally supported inside artificial intelligence platforms.

The cross-border e-commerce provider announced that Microsoft Copilot will be the first integration for ESW Agentic Commerce, allowing participating brands to connect AI-powered product discovery directly with secure checkout and payment capabilities.

The launch represents another important step in the development of agentic commerce: a model in which AI assistants do more than recommend products. They can increasingly compare options, guide purchasing decisions and complete transactions on behalf of shoppers.

For international retailers, however, connecting an AI recommendation to a completed order is considerably more complicated than adding a buy button to a chatbot. Payments, localisation, fraud prevention, import duties, compliance, fulfilment and returns must still operate correctly behind the interface.

ESW is positioning its new Agentic Commerce infrastructure as the layer that manages that complexity.

What is ESW Agentic Commerce?

ESW Agentic Commerce is a new infrastructure solution intended to connect retailers’ existing e-commerce operations with AI-powered shopping environments.

The system allows brands to integrate and optimise their product catalogues for discovery by AI platforms. Once a shopper finds a suitable product, the transaction can be completed securely within the AI experience rather than requiring the customer to move to a separate retailer website.

According to ESW, the solution works alongside a retailer’s existing e-commerce infrastructure. Brands therefore do not need to replace their current commerce platform to participate in AI-assisted shopping channels.

The technology is supported by the ESW Agentic Hub, which acts as an infrastructure layer connecting AI agents with the company’s international commerce capabilities.

Through this layer, AI platforms can potentially access the product, checkout and operational services required to move a shopper from initial discovery to a completed cross-border order.

ESW says Microsoft Copilot will be the first integration, with support for additional agents and platforms expected in the coming months. The service is immediately available to brands and customers in the United States, while broader availability is planned.

Microsoft Copilot becomes the first integration

Microsoft has been developing Copilot into a transactional shopping environment rather than limiting it to search, recommendations and product comparisons.

Copilot Checkout allows shoppers to discover, evaluate and purchase products without leaving the conversational interface. Microsoft says the merchant remains the merchant of record and retains ownership of the transaction, customer data and commercial relationship.

The ESW integration extends this concept towards international commerce.

A customer could theoretically ask Copilot for a product recommendation, compare several options, select an item and complete the purchase inside the same conversation. ESW would then provide the underlying international commerce infrastructure required to process and support the transaction.

That infrastructure can include:

• Localised checkout experiences
• International payments
• Fraud management
• Duties and tax calculations
• Regulatory compliance
• Cross-border shipping
• Fulfilment
• Customer service
• International returns

The customer may experience the journey as a simple conversation, but the transaction still depends on a complex network of commercial and logistical systems.

This operational layer is particularly important when the shopper, merchant, payment provider and delivery destination are located in different countries.

From conversational search to conversational checkout

Generative AI has already changed how some consumers research products. Shoppers can ask an AI assistant to compare specifications, interpret reviews, recommend suitable products or narrow a large catalogue according to highly specific requirements.

Until recently, however, most AI-assisted shopping journeys ended with a link.

The AI could recommend a product, but the shopper would usually have to leave the conversation, visit the merchant’s website, find the correct product again and proceed through a conventional checkout.

Each additional step created an opportunity for the customer to abandon the purchase.

Agentic commerce attempts to remove that separation between discovery and transaction. Instead of acting primarily as a search interface, the AI assistant becomes an active participant throughout the purchasing journey.

Microsoft reported that shopping journeys involving Copilot produced 53% more purchases within 30 minutes of an interaction than journeys without Copilot. When clear shopping intent was present, journeys involving Copilot were reportedly 194% more likely to result in a purchase.

These figures were published by Microsoft and should be interpreted as early platform data rather than independent measurements of the wider e-commerce market. Nevertheless, they suggest that reducing the distance between product recommendation and checkout could have a measurable effect on conversion.

Why agentic commerce is especially relevant to cross-border retail

Domestic transactions are already complicated. International orders add multiple layers of friction and risk.

A product recommended by an AI assistant may be available in one country but restricted in another. The displayed price may need to include local taxes, import duties or customs charges. Payment preferences, consumer regulations, delivery options and return procedures may also differ by market.

An AI assistant cannot reliably complete an international order simply by identifying the right product. It must also connect with systems capable of answering operational questions in real time.

These may include:

• Is the product available in the shopper’s country?
• What is the final landed cost?
• Which currency and payment methods should be offered?
• Are import restrictions applicable?
• How long will delivery take?
• Who is responsible for collecting taxes and duties?
• Can the item be returned locally?
• How will fraud and payment risk be managed?

ESW already provides international commerce services covering payments, compliance, localisation, shipping and returns across more than 200 markets. The company says it works with more than 150 global brands and processes more than eight million cross-border orders annually.

Agentic Commerce applies those capabilities to a new customer interface.

Rather than building a separate international transaction system for every AI platform, ESW’s proposed model gives brands a central infrastructure layer that can be extended across multiple agents.

Product data becomes a commercial priority

The emergence of AI-powered shopping will also increase the importance of product data.

Traditional e-commerce search is often built around keywords, categories, filters and paid placements. AI discovery is more conversational and contextual.

A shopper may not search for a particular product name. Instead, the shopper might ask:

“Find me a waterproof jacket suitable for a week in Iceland that fits in hand luggage and costs less than €200.”

To respond accurately, the AI must understand far more than a product title and category. It may need structured information about materials, sizing, climate suitability, weight, delivery availability, price, inventory and return conditions.

Brands whose product information is incomplete, inconsistent or inaccessible to AI systems may become less visible even when their products would otherwise meet the customer’s requirements.

This creates a new optimisation discipline for merchants. In addition to search engine optimisation, marketplace optimisation and feed management, brands will increasingly need to consider how products are interpreted and selected by AI agents.

Important areas will include:

• Accurate structured product attributes
• Consistent descriptions across channels
• Real-time pricing and inventory
• Clear shipping eligibility
• Detailed sizing and compatibility information
• Transparent return conditions
• Verified brand and product information
• Machine-readable commercial policies

In agentic commerce, product data is not merely descriptive content. It becomes part of the decision-making infrastructure.

ESW says retailers can retain their existing platforms

One of the most significant aspects of the ESW proposition is that retailers are not expected to replace their existing e-commerce platforms.

ESW Agentic Commerce is designed to operate alongside the merchant’s current technology stack. The retailer can therefore extend its catalogue and transaction capabilities into AI environments while continuing to use its existing platform for core commerce operations.

This reduces one of the most obvious barriers to agentic commerce adoption.

Large international retailers often operate highly customised systems involving commerce platforms, enterprise resource planning software, product information management, order management, warehouse systems and multiple payment providers.

Replacing that infrastructure solely to participate in a new AI sales channel would be costly and risky.

An integration layer allows retailers to test agentic commerce without treating it as a complete platform migration.

Nevertheless, brands will still need to determine how orders generated through AI interfaces are attributed, managed and measured. Questions around customer identity, consent, marketing permissions, returns and post-purchase communication will become increasingly important as the channel develops.

The retailer must remain visible

Agentic commerce could reduce purchasing friction, but it may also weaken the direct relationship between shoppers and retailers.

When a customer shops through an AI assistant, the assistant may control much of the experience:

• The initial recommendation
• The comparison criteria
• The products displayed
• The explanation of advantages and disadvantages
• The checkout interface
• The post-purchase conversation

This creates a strategic risk for brands. The AI platform could become the primary interface, while the retailer becomes an invisible fulfilment provider.

Microsoft has attempted to address this concern by emphasising that merchants participating in Copilot Checkout remain the merchant of record and retain control of their transaction data and customer relationship.

However, formal ownership of the transaction does not necessarily guarantee control over the customer experience.

Retailers will need to ensure that AI commerce integrations preserve brand identity, communicate accurate product information and create opportunities for continued customer engagement after the purchase.

Otherwise, brands may become increasingly dependent on AI platforms in much the same way that many merchants became dependent on search engines, marketplaces and social networks.

Agentic commerce will create new compliance questions

The ability of an AI system to complete a purchase introduces legal and regulatory questions that conventional product recommendation tools do not face.

Retailers must be able to demonstrate that customers were shown accurate prices, material product information, delivery conditions and return rights before the transaction was completed.

For cross-border orders, the process may also involve:

• Consumer protection requirements
• Data protection rules
• Product safety obligations
• Customs declarations
• Sanctions screening
• Import restrictions
• Tax collection
• Payment authentication
• Accessibility requirements
• Records of customer consent

There is also the question of responsibility when an AI assistant recommends an unsuitable product, presents incorrect information or completes a purchase based on an ambiguous instruction.

The commercial agreement between the retailer, commerce provider and AI platform will need to define how responsibility is distributed.

These issues will become more significant as AI agents gain greater autonomy. Recommending a product is different from selecting quantities, accepting terms, choosing delivery services or authorising payment.

Agentic commerce infrastructure must therefore provide both convenience and traceability.

AI platforms are becoming a new distribution channel

ESW’s launch should be understood as part of a broader shift in e-commerce distribution.

Retailers have previously adapted their businesses for successive generations of digital channels:

• Desktop websites
• Mobile commerce
• Online marketplaces
• Social commerce
• Retail media
• Voice commerce
• Conversational commerce

AI assistants may now become another major entry point.

ESW cites McKinsey research estimating that agentic commerce could represent a global opportunity of between $3 trillion and $5 trillion by 2030. The company also references a Gartner prediction that traditional search engine volume could decline by 25% as consumers increasingly use AI chatbots and virtual agents.

These projections should not be treated as guarantees that AI agents will replace conventional e-commerce journeys. Consumer trust, technical reliability, product coverage and regulatory oversight will all influence adoption.

However, the direction of investment is increasingly clear.

Microsoft, Google, OpenAI, payment companies, commerce platforms and major retailers are all developing systems that allow AI assistants to participate more directly in shopping and transactions.

The strategic question for retailers is therefore shifting from whether AI will influence product discovery to how much of the commercial journey AI platforms will ultimately control.

What retailers should do now

Most brands do not need to rebuild their entire commerce strategy around autonomous AI agents immediately. However, waiting until the channel is mature could leave retailers with significant product-data and infrastructure work to complete.

Retailers preparing for agentic commerce should begin with several practical steps.

Audit product information

Product catalogues should contain detailed, consistent and structured information that AI systems can interpret accurately.

Missing attributes, inconsistent naming and vague descriptions could reduce both visibility and recommendation quality.

Improve real-time data access

AI shopping systems require current information about prices, promotions, inventory, delivery options and geographical availability.

Static or frequently outdated feeds will not be sufficient for transactional experiences.

Review international checkout capabilities

Retailers should assess whether their existing systems can calculate local prices, duties, taxes and delivery conditions in real time.

Agentic discovery will not generate sustainable revenue if customers encounter inaccurate landed costs or failed international orders.

Establish clear governance

Brands should define which actions an AI platform can perform, what information it can access and when customer confirmation is required.

Higher-risk actions should include appropriate human approval or explicit shopper consent.

Protect the customer relationship

Retailers should understand what customer information they receive, how post-purchase communication works and whether they can continue serving the customer outside the AI platform.

Measure the channel separately

Agent-driven traffic and transactions should be distinguishable from conventional search, marketplace and direct website sales.

Without clear attribution, retailers will struggle to evaluate conversion, acquisition costs, repeat purchases and platform dependency.

A significant step, but not the finished model

ESW Agentic Commerce provides a clearer view of how AI-assisted shopping could become operational at an international scale.

The announcement moves the conversation beyond experimental chatbots and product recommendations. It focuses on the less visible infrastructure required to turn an AI interaction into a compliant, fulfilled and serviceable transaction.

Microsoft Copilot gives ESW an established AI interface through which to launch the solution. ESW contributes the international checkout, payment and operational capabilities required behind that interface.

The initial availability is currently limited to the United States, and broader adoption will depend on how quickly additional markets, retailers and AI platforms are integrated. Questions also remain regarding customer ownership, compliance, attribution and the influence AI assistants will have over product selection.

Even so, the direction is important.

E-commerce is entering a stage in which the storefront may no longer be a website, app or marketplace page. It may be a conversation.

For international brands, success in that environment will depend not only on whether an AI assistant can find their products, but whether the entire cross-border transaction can operate correctly after the recommendation is made.

The post ESW Launches Agentic Commerce with Microsoft Copilot, Connecting AI Discovery to Checkout appeared first on Cross-Border Magazine.

Shein has reported a quarterly net loss as the fast-fashion e-commerce giant prepares for its long-awaited initial public offering in Hong Kong.

The Singapore-headquartered retailer recorded a net loss of $99 million during the first quarter of 2026, compared with a net profit of $395 million during the same period a year earlier. The figures were disclosed in Shein’s draft prospectus filed with the Hong Kong Stock Exchange.

The result represents a significant reversal for one of the world’s largest online fashion platforms. However, the headline loss was not caused entirely by weaker retail performance. It included a substantial non-cash accounting charge related to the changing value of shares held by existing investors.

Even after accounting for that one-off effect, Shein’s filing points to a broader challenge: its historically powerful cross-border e-commerce model is becoming more expensive to operate.

Higher import duties, slower sales growth, tighter regulatory oversight and increasing fulfilment costs are placing pressure on the company just as it attempts to convince investors that it deserves a valuation of between $40 billion and $50 billion.

Shein reports a $99 million quarterly loss

Shein’s first-quarter loss was partly driven by a $328 million fair-value charge connected to its convertible redeemable preferred shares.

These shares were issued to investors before the company’s proposed listing and can later be converted into ordinary shares. Changes in their estimated value must be recognised in Shein’s financial accounts, creating a non-cash expense.

This distinction is important. Shein did not lose $99 million purely because selling clothes became unprofitable. Nevertheless, the company’s underlying operating figures also weakened.

Shein’s operating margin fell from 3.9% in the first quarter of 2025 to 2.9% in the first quarter of 2026. Revenue growth also slowed considerably, while sales in its largest national market declined.

The results suggest that the accounting charge magnified the quarterly loss, but did not create the company’s wider commercial problems.

US revenue falls after the end of de minimis treatment

The United States has traditionally been Shein’s most important market. Its success there was supported by the de minimis import exemption, which allowed packages valued below $800 to enter the country without standard customs duties.

That model enabled Shein to send large numbers of relatively inexpensive orders directly from Chinese warehouses to individual American customers.

The removal of favourable de minimis treatment for Chinese-origin parcels in May 2025 changed the economics of this system.

According to Shein’s prospectus, products originating in China and shipped to the US through its retail or marketplace operations can now face tax rates ranging from 10% to 87.5%, depending on the product and applicable tariff treatment.

Shein said the regulatory change had adversely affected US sales, increased expenses and slowed the company’s overall growth.

US revenue declined by 14.3% year on year, falling from $2.38 billion in the first quarter of 2025 to $2.04 billion in the first quarter of 2026.

The United States accounted for 22.5% of Shein’s quarterly revenue, compared with 29.4% of its annual revenue in 2023.

Shein considers raising US prices

Shein has acknowledged that it may need to pass some of its additional import costs on to consumers.

The company said it was pursuing several measures in response to the higher duties, including increasing prices in the US market.

That response carries a significant commercial risk.

Shein’s proposition has been built around extremely low prices, a vast product catalogue and a highly responsive supply chain capable of identifying and producing emerging fashion trends quickly.

Price increases could protect margins, but they may also weaken the company’s competitive advantage. Consumers comparing Shein with Amazon, Temu, established fashion retailers or domestic marketplace sellers may become less willing to tolerate longer cross-border delivery times when the price difference becomes smaller.

The company must therefore decide how much of the additional cost it can absorb without damaging profitability and how much it can pass on without reducing conversion rates.

Europe could become Shein’s next major pressure point

The United States is not the only market making low-value e-commerce imports more expensive.

The European Union introduced a €3 customs duty on low-value e-commerce items in July 2026 as part of its attempt to address the rapid growth of inexpensive direct-to-consumer imports.

Europe generated approximately one-third of Shein’s revenue in 2025, making the region central to the company’s growth prospects.

Shein warned investors that it was still too early to measure the full effect of the European changes. However, the company said the impact could be similar to—or potentially greater than—the disruption it experienced following the US de minimis reform.

The European system may be particularly challenging because the €3 charge can apply according to the number of different customs classifications represented in a parcel.

An order containing several types of products could therefore attract multiple charges. For a business selling very inexpensive garments and accessories, a relatively small customs cost can represent a large percentage of the original product price.

This pressure is especially relevant for Shein because European consumers may be highly sensitive to increases on products that were originally marketed at ultra-low prices.

Shein expands its European warehousing strategy

Shein has already been adapting its logistics network to reduce its dependence on individual parcels shipped directly from China.

The company has expanded warehouse capacity in Wrocław, Poland, and has been moving selected high-demand products into Europe in bulk.

Storing goods inside the EU can help Shein shorten delivery times and avoid applying the new low-value parcel charge to every individual cross-border order. It may also improve the customer experience by supporting faster fulfilment and easier returns.

However, regional warehousing introduces a different set of costs and risks.

Shein must forecast demand, import inventory before it has been sold and maintain larger quantities of stock inside regional fulfilment centres. That is a major departure from the company’s original model, which relied on small production runs and direct shipping to minimise unsold inventory.

The company is therefore being pushed towards a more conventional retail infrastructure precisely when its competitive advantage has been based on avoiding many of the costs associated with conventional retail.

Annual sales rise, but profit and growth slow

Shein remained profitable over the full 2025 financial year.

The company generated net income of $2.06 billion, but that represented a decline of 38.7% from the previous year.

Annual revenue increased by 8% to $41.85 billion. Although this remains a substantial level of growth for a company of Shein’s size, it was significantly below the 20.7% revenue expansion recorded in 2024.

These figures illustrate the challenge facing the retailer.

Shein is still a global e-commerce business generating more than $40 billion in annual sales, but its growth is slowing while the cost of accessing major consumer markets is increasing.

For IPO investors, the central question will not simply be whether Shein can continue generating revenue. It will be whether the company can preserve attractive margins after tariffs, customs charges, compliance requirements, marketing costs and regional fulfilment investments are taken into account.

Shein seeks a valuation of up to $50 billion

Shein is reportedly targeting a valuation of between $40 billion and $50 billion for its Hong Kong IPO.

That would represent a considerable reduction from the $100 billion valuation associated with a private funding round in 2022. It would also be below the $66 billion valuation assigned to the company during its May 2023 fundraising round.

The lower target reflects the changing environment for global e-commerce companies.

The exceptional online growth experienced during the pandemic has moderated. Investor enthusiasm for loss-making or low-margin technology-driven businesses has also weakened, while governments are taking a more interventionist approach towards cross-border marketplaces.

Some investors may still view Shein as a highly valuable platform with global brand recognition, strong customer engagement and a sophisticated data-driven supply chain.

Others may question whether a valuation of $40 billion or more adequately reflects its shrinking margins, exposure to regulatory action and dependence on Chinese manufacturing.

Hong Kong becomes Shein’s third IPO route

Shein’s Hong Kong listing follows unsuccessful attempts to go public in New York and London.

The company initially filed for a US IPO in November 2023 but encountered political and regulatory opposition. It later pursued a London listing and obtained approval for a draft prospectus from the UK’s Financial Conduct Authority.

However, the London plan could not progress without approval from the China Securities Regulatory Commission.

Although Shein relocated its headquarters to Singapore in 2022, the company remains deeply connected to China through its supplier network and operating infrastructure. More than 90% of its 2025 net revenue came from products stored in central warehouses in China before sale.

Chinese regulators approved Shein’s proposed Hong Kong listing on July 10, 2026, clearing an important obstacle in the company’s prolonged effort to enter the public markets.

The draft prospectus does not yet disclose the final IPO size, offer price, listing date or expected proceeds.

Shein has indicated that funds raised through the offering would be used to improve technology, expand its global presence, increase brand awareness, support corporate responsibility initiatives and provide additional working capital.

Regulatory scrutiny remains a major IPO risk

Customs charges are only one part of the regulatory challenge facing Shein.

The company has faced scrutiny over working conditions in supplier factories, the environmental effects of transporting high volumes of products by air, consumer data practices, discounting methods and products sold through its marketplace.

The European Commission has also opened a formal investigation into Shein under the Digital Services Act, examining issues including the sale of illegal products and the platform’s systems for protecting consumers.

Shein has stated that it maintains a zero-tolerance policy towards labour abuses and has invested in risk assessment, compliance and user-protection systems.

For prospective investors, however, these investigations represent potential financial and reputational liabilities.

A major regulatory penalty, forced change to the platform’s interface or stricter seller-monitoring obligation could increase costs further. The possibility of different rules being introduced across the US, EU and other markets also makes long-term financial planning more difficult.

Shein’s cross-border model is being rewritten

Shein’s rise was enabled by a combination of digital demand forecasting, low-cost Chinese manufacturing, small production batches and direct international delivery.

This structure allowed the company to offer thousands of new products, respond quickly to fashion trends and sell at prices that traditional retailers found difficult to match.

The model is not disappearing, but it is being rewritten.

Major economies increasingly expect cross-border platforms to collect taxes, verify sellers, monitor product safety and contribute more towards customs enforcement. Governments are also removing exemptions that allowed low-value parcels to enter with fewer costs and administrative requirements.

As these policies spread, platforms such as Shein and Temu may need to hold more inventory locally, establish regional fulfilment networks and assume greater responsibility for the goods sold through their marketplaces.

That transition could make their operations more resilient and improve delivery performance. It could also make them more expensive and structurally similar to the established retailers they initially disrupted.

Can Shein defend its valuation?

Shein’s $99 million quarterly loss is unlikely to determine the success or failure of its IPO on its own.

The $328 million accounting charge means the headline figure does not provide a complete picture of the retailer’s underlying performance.

The more important indicators are the 14.3% decline in US revenue, the reduction in operating margin, slower annual sales growth and the company’s warning that European customs reforms could have an impact comparable to the disruption already seen in the United States.

Investors will need to decide whether these pressures are temporary consequences of a changing regulatory environment or evidence that Shein’s most profitable period has already passed.

Shein remains one of the world’s largest and most influential e-commerce businesses. It has more than $40 billion in annual revenue, an internationally recognised brand and a supply chain that transformed the fast-fashion industry.

But the company approaching Hong Kong’s public markets is no longer the hypergrowth retailer valued at $100 billion in 2022.

It is a more mature business facing higher costs, lower margins and increasingly coordinated government scrutiny.

The success of its IPO may ultimately depend on whether Shein can demonstrate that its model still works when low-value cross-border commerce is no longer treated as an exception.

The post Shein falls into the red ahead of its Hong Kong IPO appeared first on Cross-Border Magazine.

Czech beauty retailer Notino generated €1.76 billion in revenue during its latest financial year, reinforcing its position as one of Europe’s most successful cross-border e-commerce businesses.

The Brno-based company closed fiscal year 2025, covering May 2025 to April 2026, with revenue growth of 11.5% year on year. Notino now serves more than 40 million customers across 27 European markets, supported by a combination of localized online stores, mobile commerce, physical retail and beauty-service partnerships.

Although growth slowed during the Black Friday and Christmas shopping period, the company reported a significant acceleration in early 2026. Revenue growth reached 27% during the opening months of the calendar year, suggesting that the retailer entered its new financial period with renewed momentum.

The results demonstrate how a retailer originating in Central Europe can build a large cross-border business by combining regional localization with centralized technology, logistics and brand management.

Poland remains Notino’s largest European market

Poland generated more than 15% of Notino’s total revenue, making it the company’s largest national market.

The Czech Republic, where Notino is headquartered, accounted for approximately 12%, while Italy contributed 9%. Romania represented a further 7% of annual revenue.

The geographical distribution of its sales highlights the genuinely cross-border nature of Notino’s business. Rather than depending heavily on its domestic market, the retailer has built substantial operations across Central, Eastern, Southern and Western Europe.

Croatia and Lithuania were the company’s fastest-growing markets during the financial year, with revenue in both countries rising by more than 25%.

These results also illustrate the opportunity available in smaller European markets. While Germany, France, Italy and Spain are often considered the primary destinations for international e-commerce expansion, markets in Central and Eastern Europe can offer strong growth where competition, customer acquisition costs and online retail penetration differ from those in the continent’s largest economies.

Revenue has more than doubled in four years

Notino’s latest performance forms part of a much longer period of rapid expansion.

The company generated approximately €737 million in revenue in 2021. Four years later, annual revenue had increased by more than €1 billion to reach €1.76 billion.

In 2022, the company reported turnover of more than €1.03 billion, representing year-on-year growth of 32%. At that stage, Notino said customers were purchasing the equivalent of 3.5 products every second.

Fiscal year 2024 revenue subsequently reached approximately €1.58 billion, up 18% year on year. The latest €1.76 billion result therefore represents continued double-digit expansion, although at a more moderate annual rate than in some previous periods.

Notino nevertheless said it continued to grow faster than the wider European e-commerce market while maintaining a sufficiently strong financial position to keep investing in its infrastructure and customer experience.

Four in ten Notino orders now come through its app

Mobile commerce has become a central element of Notino’s customer-retention and sales strategy.

Approximately four out of every ten orders are now placed through the Notino mobile app. The company has invested in simplifying the purchasing process, improving digital services, increasing personalization and introducing a loyalty program designed to encourage repeat purchases.

The proportion of app-based orders is particularly significant for the beauty sector, where frequent purchases, product discovery, personalized recommendations and loyalty incentives can encourage customers to return regularly.

An app can also provide retailers with a more direct relationship with customers than conventional web traffic. It reduces dependence on search engines, marketplaces and paid advertising channels while creating additional opportunities for personalized offers, product reminders and loyalty rewards.

Notino’s loyalty program was initially introduced in the Czech Republic, Slovakia and Hungary. The retailer plans to refine the program using customer feedback before expanding it gradually into additional European markets.

This controlled approach reflects one of the central challenges of cross-border e-commerce: a program that performs well in one market may need to be adapted to different customer expectations, pricing environments and purchasing habits elsewhere.

Physical stores become an important growth channel

Despite its origins as an online retailer, Notino is increasingly developing an omnichannel model.

The company currently operates 27 physical stores across eight European countries. Revenue generated through those stores increased by almost 30% year on year, substantially faster than the company’s overall annual growth rate.

Notino opened its first physical store in Croatia during the latest financial year and plans to open its first Slovenian store in Ljubljana in autumn 2026.

The expansion demonstrates that physical retail can complement rather than replace an e-commerce-led strategy.

Beauty products can be difficult to evaluate entirely online. Fragrance, makeup and skincare customers may want to test products, receive advice or compare different options in person before purchasing. Stores can therefore support product discovery and build trust, while the online platform provides a broader range, convenient delivery and repeat-order functionality.

Physical locations can also serve as local brand-building tools in markets where a retailer is less established. They give customers a visible point of contact while strengthening the credibility of the broader online operation.

Notino is building a broader beauty ecosystem

The retailer’s strategy now extends beyond selling physical products.

Through the Notino Partner platform, customers can book appointments with participating beauty salons. The service connects more than 8,000 salons with customers in five European countries and processed approximately 1.5 million bookings during the latest financial year.

Notino plans to introduce the service in Croatia and Austria during 2026.

The platform gives the company an opportunity to become involved in a wider portion of the customer journey. Instead of interacting with consumers only when they purchase cosmetics, Notino can also participate when they book hair, skincare or other beauty services.

This model can potentially create a reinforcing ecosystem. Customers discover products through the website or app, visit stores to test them and use the same brand to access related professional services.

For cross-border retailers, this broader ecosystem approach can provide an advantage over competitors focused exclusively on product transactions.

New leadership structure supports European expansion

Notino has also reorganized its senior leadership as the company prepares for its next stage of growth.

After more than six years leading the business, Zbyněk Kocián transferred management responsibility to three co-CEOs: Bartosz Kliś, Lukáš Havlásek and Jakub Šedý.

Responsibilities have been divided across three main areas of the business. The company believes that the structure will accelerate decision-making and allow it to manage an increasingly complex European operation more effectively.

Šedý oversees areas including finance, legal affairs, human resources, facilities, logistics and strategy. He said Notino had maintained healthy profitability, increased absolute EBITDA, improved working-capital efficiency and reduced net debt, although the latest figures remained subject to final audit at the time of his statement.

According to Šedý, Notino recorded growth of more than 20% in every month from February 2026 onwards.

The operational changes are intended to create a more agile organization capable of continuing to invest in technology, logistics, customer experience and talent while preserving financial discipline.

Logistics and localization remain central to the model

Notino’s growth provides a useful example of the infrastructure required to scale a cross-border retail business across Europe.

Operating in 27 markets requires more than translating a website. Retailers must manage different languages, currencies, payment preferences, delivery expectations, product regulations, promotional calendars and customer-service requirements.

Notino says it operates in 27 countries and works across 22 languages. Its workforce numbers more than 2,800 employees, according to the company’s careers information.

The company combines these local market capabilities with centralized investment in areas such as technology, inventory, logistics and digital customer experience.

This balance is important. Excessive centralization can produce a customer experience that feels disconnected from individual markets, while excessive decentralization can duplicate costs and create operational complexity.

Notino’s scale suggests that it has been able to build a common European retail platform while maintaining sufficient local adaptation to compete in very different national markets.

What Notino’s results mean for European e-commerce

Notino’s €1.76 billion revenue result offers several lessons for retailers pursuing international growth.

First, successful cross-border expansion need not begin in Europe’s largest markets. Notino grew from the Czech Republic and made Poland its largest revenue source, while some of its fastest growth is now coming from Croatia and Lithuania.

Second, localization must extend beyond language. Mobile behavior, loyalty schemes, delivery options, physical retail and beauty-service partnerships all need to reflect how customers shop in each country.

Third, omnichannel retail can strengthen an online-first business. Notino’s store revenue grew by almost 30%, indicating that physical locations are becoming a meaningful contributor rather than a secondary brand exercise.

Finally, direct customer relationships are becoming increasingly valuable. With 40% of orders coming through its app, Notino is reducing its dependence on external discovery and acquisition channels while creating more opportunities for repeat purchases and personalized engagement.

Notino prepares for its next European growth phase

Notino enters fiscal year 2026 with a larger customer base, a new leadership structure and further physical and digital expansion planned across Europe.

The company’s annual growth rate of 11.5% is lower than the exceptional increases recorded in some earlier years. However, the acceleration to 27% growth during the first months of 2026 indicates that momentum may be strengthening again.

Its progress also shows that European e-commerce growth is increasingly being driven by retailers capable of combining digital scale with local market execution.

Notino is no longer simply a Czech online perfume retailer selling internationally. It has developed into a multi-market European beauty platform incorporating e-commerce, mobile shopping, stores, loyalty services and salon bookings.

The next challenge will be maintaining that local relevance and operational efficiency as the business grows larger and competition in European beauty retail intensifies.

The post Notino reaches €1.76 billion as European cross-border growth accelerates appeared first on Cross-Border Magazine.