Daily Cross-Border E-Commerce Briefing | May 20, 2025

1. FedEx Raises Fuel Surcharges to 17.75% for May 19–25
  • FedEx has updated its fuel surcharge rates for the week of May 19–25, 2025, increasing the surcharge to 17.75% for U.S. domestic, export, and import services. This adjustment reflects the rising jet fuel prices reported by the U.S. Energy Information Administration. The increased surcharge is expected to impact shipping costs for e-commerce businesses relying on FedEx services during this period.
    Source: FedEx, Published on: May 19, 2025
2. Shopify Joins Nasdaq-100 Index
  • Effective May 19, 2025, Shopify Inc. has been added to the Nasdaq-100 Index, replacing MongoDB, Inc. This inclusion signifies Shopify's growing influence in the tech sector and is expected to enhance its visibility among investors. The move may attract increased investment and confidence in Shopify's platform, benefiting merchants operating on its e-commerce infrastructure.
    Source: Nasdaq IR, Effective on: May 19, 2025
3. PayPal Updates U.S. User Agreement and Fees
  • On May 19, 2025, PayPal announced amendments to its U.S. User Agreement, including changes to dispute resolution timelines and cross-border transaction fees. These updates, set to take effect in June 2025, may affect how merchants handle refunds and international transactions. Sellers are advised to review the new terms to ensure compliance and adjust their payment processes accordingly.
    Source: PayPal, Published on: May 19, 2025
4. U.S. Q1 2025 E-Commerce Sales Reach $300.2 Billion
  • The U.S. Census Bureau reported that retail e-commerce sales for the first quarter of 2025 totaled $300.2 billion, accounting for 16.2% of total retail sales. This marks a 6.1% increase from the same period in 2024, indicating sustained growth in online shopping. E-commerce businesses can leverage this trend to strategize for continued expansion in the digital marketplace.
    Source: U.S. Census Bureau, Published on: May 19, 2025
5. Google Ads Bug Affects New Customer Acquisition Campaigns
  • A confirmed bug in Google Ads has caused campaigns utilizing the New Customer Acquisition (NCA) goal to experience reduced spending since May 15, 2025. Advertisers relying on NCA strategies may see decreased ad performance. Google is actively working on a fix, and advertisers are encouraged to monitor their campaigns and consider alternative bidding strategies in the interim.
    Source: Search Engine Land, Published on: May 19, 2025
6. Philippines Announces Significant Fuel Price Hike
  • Starting May 20, 2025, fuel prices in the Philippines will increase significantly, with gasoline prices rising by PHP 1.20 per liter and diesel by PHP 1.70 per liter. This adjustment ends a two-week streak of price reductions and is expected to impact transportation and logistics costs within the region. Businesses operating in or shipping to the Philippines should anticipate increased operational expenses.
    Source: GMA News, Published on: May 19, 2025
7. Drewry Reports 7% Drop in Intra-Asia Container Rates
  • Drewry's Intra-Asia Container Index (IACI) has decreased by 7% in early May 2025, falling to $656 per 40-foot container. Despite this decline, the index remains 11% higher than in May 2024. The reduction suggests a temporary easing in regional shipping costs, presenting an opportunity for businesses to optimize their logistics and inventory strategies.
    Source: FreshPlaza / Drewry, Published on: May 19, 2025
8. Amazon's Memorial Day Sale Offers Deep Discounts Across Categories
  • Amazon's 2025 Memorial Day Sale features significant discounts across various categories, including home appliances, tech gadgets, fitness equipment, furniture, beauty products, and clothing. Notable deals include savings on brands like Apple, Samsung, Sony, and LG. The sale presents an excellent opportunity for consumers to purchase high-ticket items at reduced prices ahead of the summer season.
    Source: New York Post, Published on: May 19, 2025

Strategic Recommendations

  • Adjust Shipping Costs Accordingly: With FedEx's increased fuel surcharges, e-commerce businesses should reassess their shipping rates and consider alternative carriers to maintain profitability.
  • Leverage Shopify's Enhanced Visibility: Shopify's inclusion in the Nasdaq-100 Index may attract more users to its platform. Merchants can capitalize on this by highlighting their association with a leading e-commerce platform in marketing efforts.
  • Review and Update Payment Policies: In light of PayPal's upcoming changes, sellers should update their refund and dispute resolution processes to align with the new terms, ensuring a smooth customer experience.
  • Monitor Advertising Campaigns: Advertisers using Google Ads' New Customer Acquisition goal should closely monitor their campaigns for any irregularities and be prepared to adjust strategies as Google resolves the ongoing bug.
  • Plan for Increased Fuel Costs in the Philippines: Businesses operating in or shipping to the Philippines should anticipate higher transportation costs and adjust their logistics and pricing strategies accordingly.
  • Optimize Shipping Routes in Asia: The recent drop in intra-Asia container rates offers an opportunity for cost savings. Companies should consider adjusting their shipping schedules to take advantage of lower rates.
  • Capitalize on Consumer Spending Trends: Amazon's Memorial Day Sale indicates strong consumer spending. E-commerce businesses should align their marketing and inventory strategies to meet increased demand.

Conclusion

  • Agile pricing, policy compliance and channel diversification remain critical as tariffs and fuel costs fluctuate.
  • Merchants who proactively adjust supply-chain routes and marketing tactics can secure margins and capture holiday traffic.