【Cross-Border E-Commerce Retreat Survey 2026】 Over 90% Reflect That Failures Could Have Been Avoided With Prior Knowledge; "Securing a Trusted Local Partner" Tops List of Priorities for Future Re-Entry

Shopee Japan Co., Ltd. (headquartered in Minato-ku, Tokyo; hereinafter "Shopee Japan"), the Japanese subsidiary of Shopee, the largest e-commerce platform in Southeast Asia and Taiwan, announces the results of a survey conducted among 112 managers and executives who have experienced scaling down or withdrawing from cross-border e-commerce operations.

01|Over 90% of cross-border e-commerce retreat respondents feel that "there were failures which could have been avoided had they known beforehand."

02|91.9% express willingness to re-enter; "securing a reliable local partner" is the top priority at 68.9%

03|Main withdrawal reasons: "compliance with local regulations and tax systems" (25.9%), "inadequate foreign exchange risk management" (20.5%)

Survey Overview

Survey name: Cross-Border E-Commerce Retreat Experience Survey

Method: Online survey planned via IDEATECH's research marketing platform "Resapy®"

Survey period: June 10–11, 2026

Valid responses: 112 managers and executives with experience in scaling down or withdrawing from cross-border e-commerce operations

*Note: Percentages may not total exactly 100 due to rounding to two decimal places.

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Approximately half of respondents withdrew within a short operational period of 1–2 years

When asked "Q1. How long has your company been conducting cross-border e-commerce operations?" (n=112), 46.4% responded "1–2 years," and 33.9% answered "3–5 years."

Q1. How long has your company been conducting cross-border e-commerce operations?

· Less than 1 year: 3.6%

· 1–2 years: 46.4%

· 3–5 years: 33.9%

· 6–10 years: 8.0%

· 11 years or more: 7.1%

· Don't know/cannot answer: 0.9%

Main reasons for withdrawal: "compliance with local regulations and tax systems" tops at 25.9%

When asked "Q2. What were the main reasons your company scaled down or withdrew from cross-border e-commerce operations?" (n=112), "difficulty complying with local regulations and tax systems" accounted for 25.9%, followed by "inadequate management of foreign exchange risk" at 20.5%.

Q2. What were the main reasons your company scaled down or withdrew from cross-border e-commerce operations?

· Difficulty complying with local regulations and tax systems: 25.9%

· Inadequate management of foreign exchange risk: 20.5%

· Underestimation of logistics costs: 16.1%

· Misjudgment of local market needs: 12.5%

· Communication difficulties due to language barriers: 10.7%

· Ineffective local marketing: 6.2%

· Unsustainable profitability: 5.4%

· Insufficient internal resources: 1.8%

· Other: 0.0%

· Don't know/cannot answer: 0.9%

Over 90% of respondents believe failures could have been avoided with prior knowledge

When asked "Q3. Do you think there were failures in your company's cross-border e-commerce operations that could have been avoided if known in advance?" (n=112), 27.7% responded "strongly agree," and 62.5% said "somewhat agree."

Q3. Do you think there were failures in your company's cross-border e-commerce operations that could have been avoided if known in advance?

· Strongly agree: 27.7%

· Somewhat agree: 62.5%

· Not really: 7.1%

· Strongly disagree: 1.8%

· Don't know/cannot answer: 0.9%

Top perceived avoidable failure: "logistics costs greatly exceeded expectations" at 62.4%

For respondents who answered "strongly agree" or "somewhat agree" to Q3, they were asked "Q4. Please specify the particular failures you believe could have been avoided with prior knowledge. (Multiple answers allowed)" (n=101). The top response was "logistics costs greatly exceeded expectations, making operations unprofitable" at 62.4%, followed by "listing suspensions or penalties due to violation of local regulations" at 45.5%, and "loss of price competitiveness due to tariffs and import restrictions" at 44.6%.

Q4. Please specify the particular failures you believe could have been avoided with prior knowledge. (Multiple answers allowed)

· Logistics costs greatly exceeded expectations, making operations unprofitable: 62.4%

· Listing suspensions or penalties due to violation of local regulations: 45.5%

· Loss of price competitiveness due to tariffs and import restrictions: 44.6%

· Launching products that didn't sell locally, resulting in inventory buildup: 34.7%

· Inability to compete with rivals on price or quality: 27.7%

· Inability to support popular local payment methods, limiting purchase conversion: 16.8%

· Frequent delivery delays and customer service issues: 9.9%

· Other: 0.0%

· Don't know/cannot answer: 0.0%

Top product category handled in cross-border e-commerce: "cosmetics and beauty-related" at 50.9%

When asked "Q5. What product categories did your company sell or attempt to sell via cross-border e-commerce? (Multiple answers allowed)" (n=112), "cosmetics and beauty-related" led at 50.9%, followed by "daily necessities and household goods" at 39.3%, and "apparel and fashion" at 33.9%.

Q5. What product categories did your company sell or attempt to sell via cross-border e-commerce? (Multiple answers allowed)

· Cosmetics and beauty-related: 50.9%

· Daily necessities and household goods: 39.3%

· Apparel and fashion: 33.9%

· Electronics and appliances: 33.0%

· Food and beverages: 20.5%

· Toys, hobbies, anime-related: 18.8%

· Health foods and supplements: 15.2%

· Crafts and traditional handicrafts: 8.0%

· Other: 4.5%

· Don't know/cannot answer: 2.7%

91.9% of respondents express willingness to re-enter cross-border e-commerce

When asked "Q6. If given the opportunity, would you consider re-entering or expanding cross-border e-commerce operations?" (n=112), 31.2% responded "strongly agree," and 60.7% said "somewhat agree."

Q6. If given the opportunity, would you consider re-entering or expanding cross-border e-commerce operations?

· Strongly agree: 31.2%

· Somewhat agree: 60.7%

· Not really: 6.2%

· Strongly disagree: 0.9%

· Don't know/cannot answer: 0.9%

Top priorities for re-entry: "securing a reliable local partner" (68.9%), followed by "utilizing expert or consultant support" (40.8%)

For respondents who answered "strongly agree" or "somewhat agree" to Q6, they were asked "Q7. What aspects would you prioritize when re-entering cross-border e-commerce? (Multiple answers allowed)" (n=103). The top response was "securing a reliable local partner" at 68.9%, followed by "utilizing support from experts or consultants" at 40.8%, and "establishing logistics and distribution networks" at 39.8%.

Q7. What aspects would you prioritize when re-entering cross-border e-commerce? (Multiple answers allowed)

· Securing a reliable local partner: 68.9%

· Utilizing support from experts or consultants: 40.8%

· Establishing logistics and distribution networks: 39.8%

· Thorough local market research and needs analysis: 35.0%

· Building systems to comply with local regulations and tax systems: 30.1%

· Developing strategies to manage foreign exchange risk: 24.3%

· Phased expansion for risk diversification: 13.6%

· Internal resource and talent acquisition: 11.7%

· Other: 0.0%

· Don't know/cannot answer: 0.0%

Additional priorities include "cost reduction and thorough training" and "mechanisms to hedge against yen depreciation risk"

When asked "Q8. Besides the above, please freely share any additional aspects you would prioritize when re-entering cross-border e-commerce." (n=103), 38 responses were collected.

<Selected open-ended responses>

· Cost reduction and thorough training when issues arise.

· Mechanisms to hedge against future yen depreciation, with product safety as a given.

· Offering higher-priced products than before.

· Clarity and precision.

· Integration with AI.

Top desired support: "one-stop logistics and delivery support" at 58.0%

When asked "Q9. What kind of support would have been helpful or do you think will be necessary for cross-border e-commerce operations? (Multiple answers allowed)" (n=112), "one-stop logistics and delivery support" ranked highest at 58.0%, followed by "access to information on local markets and consumer needs" at 45.5%, and "support for integration with local marketplaces" at 43.8%.

Q9. What kind of support would have been helpful or do you think will be necessary for cross-border e-commerce operations? (Multiple answers allowed)

· One-stop logistics and delivery support: 58.0%

· Information on local markets and consumer needs: 45.5%

· Support for integration with local marketplaces: 43.8%

· Provision of a dedicated cross-border e-commerce platform: 28.6%

· Multilingual customer support outsourcing: 24.1%

· Expert advice on local regulations and tax systems: 20.5%

· Consulting by experienced cross-border e-commerce practitioners: 11.6%

· Other: 0.0%

· No particular support needed: 0.0%

· Don't know/cannot answer: 0.9%

Advice for future entrants: Over 60% recommend "starting gradually and on a small scale"

When asked "Q10. As someone who has withdrawn, what advice would you give to companies planning to enter cross-border e-commerce? (Top 3 answers only)" (n=112), "start gradually and on a small scale" was the top response at 60.7%, followed by "do not hesitate to consult experts" at 44.6%, and "take time selecting local partners" at 32.1%.

Q10. As someone who has withdrawn, what advice would you give to companies planning to enter cross-border e-commerce? (Top 3 answers only)

· Start gradually and on a small scale: 60.7%

· Do not hesitate to consult experts: 44.6%

· Take time selecting local partners: 32.1%

· Clearly define withdrawal criteria in advance: 29.5%

· Avoid overemphasizing short-term results: 24.1%

· Secure commitment and understanding from management: 11.6%

· Choose markets where your company's strengths can be leveraged: 7.1%

· Other: 0.0%

· No particular advice: 0.0%

· Don't know/cannot answer: 0.9%

Summary

This survey targeted 112 managers and executives who have scaled down or withdrawn from cross-border e-commerce operations. The results revealed that 90.2% believe failures could have been avoided with prior knowledge, while 91.9% expressed willingness to re-enter.

First, the duration of cross-border e-commerce operations was shortest for 46.4% who operated for "1–2 years," indicating frequent early exits. The top reason for withdrawal was "difficulty complying with local regulations and tax systems" (25.9%), followed by "inadequate foreign exchange risk management" (20.5%). Regarding avoidable failures, "logistics costs greatly exceeded expectations" (62.4%) stood out, followed by "listing suspensions or penalties due to regulatory violations" (45.5%) and "loss of price competitiveness due to tariffs and import restrictions" (44.6%). When re-entering, the top priority was "securing a reliable local partner" (68.9%), and the most desired support was "one-stop logistics and delivery support" (58.0%).

The survey suggests that most withdrawals stem not from rejecting the business model itself, but from insufficient preparation for structural challenges that should have been identified prior to market entry. Nevertheless, the strong desire to re-enter reflects sustained confidence in the market's potential. Going forward, leveraging external expertise—particularly in areas such as local partner selection and logistics infrastructure—will likely be a key factor for successful overseas expansion.

Simplifying complex overseas expansion: Shopee's full support for business internationalization

~ Shopee helps businesses lower barriers to global market expansion ~

"Want to enter overseas markets but don't know where to start?" "Language, culture, and complex logistics are barriers?" Many businesses hesitate to take their first step into cross-border e-commerce due to such concerns.

Shopee is here to eliminate these concerns and provide comprehensive support to overcome every hurdle in overseas expansion.

End-to-end support from store setup to sales promotion From store registration to product listing, and from advertising optimization to influencer marketing strategies, our dedicated team provides full support—ensuring even first-time sellers can launch with confidence.

Seamless logistics and inventory management With Shopee's official logistics service "SLS (Shopee Logistics Service)," international shipping, inventory management, and returns handling are all streamlined. This allows businesses to focus on core activities like product development and sales.

Data-driven strategic store management By analyzing sales data and market trends, we provide tailored sales strategies—enabling reliable, data-backed store operations instead of relying on intuition.

Southeast Asia's vast potential remains in its early stages for Japanese businesses. Will you take the first step with us—transforming uncertainty into measurable growth by leveraging Shopee's extensive data and expertise?

Learn more: https://shopee.jp/column/

Company Overview: Shopee Japan Co., Ltd.

Shopee is the largest e-commerce platform in Southeast Asia and Taiwan. By supporting corporate digitalization, enhancing online presence, expanding digital service access, and contributing to local communities, Shopee builds a connected digital ecosystem.

Shopee provides a simple, secure, and engaging e-commerce platform used daily by hundreds of millions worldwide. As a key contributor to local digital economies, Shopee is committed to helping businesses succeed in e-commerce.

Shopee is a group company (subsidiary) of Sea Limited (headquartered in Singapore, listed on the New York Stock Exchange), a leading global consumer internet company. In addition to Shopee, Sea's core businesses include Garena (digital entertainment) and SeaMoney (digital financial services), all aiming to improve lives through technology for consumers and businesses.

Support from Shopee Japan

Shopee Japan's staff provide Japanese-language support for store setup and sales growth. Inquiries are welcome via DM or email.

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