Returns have always been the most headache-inducing part of cross-border e-commerce. A Shenzhen-based seller engaged in 9610 retail exports had a batch of clothing worth 80,000 yuan returned by an overseas buyer last year due to sizing issues. However, since the original export customs clearance was processed in Xiamen, the returned goods could only be cleared through customs and re-imported via Xiamen. The goods were returned from the United States to Xiamen and then transported to a warehouse in Shenzhen. The entire process took 45 days, and logistics costs accounted for 35% of the goods’ value—virtually erasing all profit from this shipment.

Last year, Mr. Zhang from Shenzhen started a company in Hong Kong and, while he was at it, deposited over 800,000 U.S. dollars in an account at HSBC. This year, he received an email from the bank asking him to complete a “Self-Certification Form for Tax Residency Status,” and only then did he realize: the money in his Hong Kong account was going to be reported back to the mainland. This is the CRS. It’s not as overt as a tax audit, but its scope is expanding more and more.

Sister Lin, who runs a Meike Duo business in Shenzhen, has been feeling quite torn lately. She used to handle her own shipping, which offered decent profit margins, but delivery times were slow and the return rate was high. The platform has been pushing her to join the FBM official warehouse, claiming it could boost her traffic by 20 percent, but after calculating the warehousing fees and shipping costs, she’s hesitant to make the switch.

Xiao Chen, who runs an independent e-commerce site in Shenzhen, opened a Bank of China (Hong Kong) account last year. He discovered that after linking his Hong Kong bank card to WeChat Pay, when he scanned a QR code to make a payment on the mainland, the amount was deducted directly in Hong Kong dollars at the daily exchange rate—without needing to exchange currency in advance. This feature is particularly useful for cross-border sellers.

Brother Li from Yiwu, who sells to the South African market, makes over 200,000 rand a month on Takealot. But every time he withdraws funds, it’s a headache: the money first goes to Payoneer, then is converted and transferred back to China, and after all the fees are deducted layer by layer, the actual amount he receives is nearly three percentage points less. On the surface, this issue of receiving payments seems to be about fees, but in reality, it’s about choosing the right route.