How will e-commerce agency companies in China perform in 2025? Why do brands all choose to cooperate with agency operation

By 2025, China's e-commerce industry has entered a dual cycle of "zero-sum game + technological innovation", and the intensity of brand competition has far exceeded that of the past. According to statistics, the domestic e-commerce agency operation market size exceeded 480 billion yuan in 2024, with an annual growth rate of 18.6%. The number of brands served by leading agency operation companies increased by 32% year-on-year. In this red ocean, an increasing number of brands choose to entrust their online business to agency operation companies, even including some mature brands with annual revenue exceeding 5 billion. Behind this phenomenon lies a profound transformation in China's e-commerce industry.

I. Upgrading of Three core Capabilities in the Operation Industry in the 2025 era

The ability to integrate all-domain traffic

By 2025, the agency operation companies will no longer be the "operators" of a single platform, but have evolved into "all-domain traffic dispatching centers". Take a leading agency as an example. Its team can simultaneously operate a Tmall flagship store, Douyin brand self-broadcasting, Pinduoduo's 10-billion-yuan subsidy program, Xiaohongshu's grass-planting matrix, and wechat private domain communities. Through AI algorithms, it achieves dynamic cross-platform traffic allocation. For instance, a certain beauty brand, through the "all-domain ROI model" of its agency operation company, guided impulse buyers from Douyin's live-streaming room to make repeat purchases on Tmall. At the same time, it used Pinduoduo to screen users from lower-tier markets with low prices and introduce them into its private domain, increasing the LTV (Lifetime Value) per user by 2.3 times.

The data middle platform drives decision-making

Leading agency operation companies have established a dual-engine decision-making system of "data middle platform + industry experts". The data middle platform can capture over 200 dimensional indicators in real time, including user behavior data from the entire platform, competitive product dynamics, and supply chain fluctuations. It predicts sales fluctuations (with an error rate of less than 5%) through machine learning and automatically generates inventory plans. A certain home appliance brand has reduced its inventory turnover rate from 45 days to 28 days through the "intelligent replenishment system" of its agency operation company, and the proportion of slow-moving goods has decreased by 67%.

Flexible supply chain management capability

Facing the "pulse-like orders" brought by live-streaming e-commerce, the agency operation company has deeply bound with the factories in the 1688 industrial belt, achieving "48-hour rapid order conversion". For instance, after a certain clothing brand received a flood of orders in a Douyin live-streaming room, the agency operation company could immediately mobilize the flexible supply chain of the Jiubao industrial belt in Hangzhou, completing the entire process from fabric procurement to garment delivery within 72 hours. The out-of-stock rate dropped from the industry average of 15% to 2%.

Ii. Five Deep Logics for Brands to Choose Agency Operations

Cost Structure Optimization: From "Heavy Assets" to "Lightweight"

The cost of building one's own e-commerce team is rising exponentially. Take Hangzhou as an example. The annual cost of a mature Douyin operation team (including hosts, pitchers, and field controllers) exceeds 2 million yuan. However, the agency operation company can convert the fixed cost of the brand owner into flexible cost through the "service fee +GMV share" model. After a certain food brand entrusted its Tmall store to an agency for operation, its labor costs dropped by 40%, but its sales increased by 120%.

Sharing of technological dividends: Small and medium-sized brands "Hitch a ride" on the AI revolution

By 2025, agency operation companies have become the largest application scenario of AI technology in e-commerce. For instance, the "AI virtual streamer" independently developed by a certain agency can live-stream 24 hours a day without interruption. The GMV of a single session can reach 70% of that of a real streamer, and the cost is only one fifth of the latter. Its "Intelligent Customer Service System" can handle over 5,000 concurrent inquiries simultaneously, with a response time of less than 0.8 seconds and a conversion rate increase of 18%. For small and medium-sized brands, the cost of independently developing these technical capabilities can be as high as tens of millions of yuan.

Risk hedging: The "safety cushion" effect of agency operation companies

In the current context where platform rules are frequently adjusted, agency operation companies have become the "policy buffer" for brands. For instance, after Douyin adjusted its traffic distribution algorithm in 2024, a certain agency helped its cooperative brands make a smooth transition by conducting data modeling three months in advance. Meanwhile, the traffic of self-operated brands generally declined by 30% to 50% during the same period. In addition, the agency can reduce the risk of a single brand by combining multiple brands. For instance, if a certain agency serves 10 beauty brands simultaneously, even if one brand is taken off the shelves due to public opinion, the overall GMV fluctuation can still be controlled within 5%.

Organizational Efficiency Revolution: From "Experience-driven" to "Algorithm-driven"

The agency operation company has broken down the operation process into over 300 standardized modules and implemented "thousand stores, thousand strategies" through algorithms. For instance, a certain agency can automatically match different operation strategies based on the life cycle of the brand (introduction stage, growth stage, maturity stage) :

Introduction period: Focus on Douyin seeding and Pinduoduo product testing, with an ROI target set at 1:3

Growth stage: Dual drive of Tmall flagship store and Douyin brand self-broadcasting, with a daily sales ratio target of 6:4

Maturity stage: Strengthen private domain accumulation + membership system, and raise the repurchase rate target to 45%

This refined operation capability far exceeds the "impulsive decision-making" of traditional brand e-commerce teams.

Global Layout: Agency operation Companies Become "Springboards for Going global"

With the rise of platforms such as Temu and TikTok Shop, agency operation companies are replicating their domestic experience to overseas markets. For instance, a certain agency has helped over 50 domestic brands build their markets in Southeast Asia from scratch. By combining a local operation team with a domestic supply chain, it has reduced the new product launch cycle from three months to 45 days and kept the return rate within 8% (the industry average is 15%).

Iii. Three Hidden Concerns and Responses in the Operations Industry in the 202025 Era

Data security risk

With the implementation of the Data Security Law, agency operation companies need to establish a "data isolation wall" to ensure that brand data is not cross-used. Leading companies have adopted blockchain technology to confirm data rights and purchased data security insurance worth tens of millions.

Uncertainty of platform policies

Platforms such as Douyin and Pinduoduo frequently adjust their policies, requiring agency operation companies to maintain a "policy sense". A certain agency has established a policy research institute, which produces over 20 pages of platform rule interpretation reports every week and has developed a policy simulation system to predict rule changes three months in advance.

The self-operation ability of the brand has backfired

Some leading brands choose to build their own teams after the cooperation becomes mature, resulting in the loss of clients for the agency operation companies. For this reason, leading agency operation companies are transforming into "brand e-commerce partners", deeply binding brands through means such as technology licensing and talent training.

Iv. A "Pitfall Avoidance Guide" for Brands Choosing Agency Operations

Beware of the "low-price trap" : Agency companies that offer prices 30% lower than the industry average often create data through order rigging and false transactions, eventually leading to the closure of brand stores.

Inspect the technical middle platform: Require the agency operation company to display core technical assets such as data dashboards and algorithm models, and avoid choosing "labor-intensive" companies.

Pay attention to industry matching: For high-iteration categories such as beauty and clothing, it is necessary to choose an agency with relevant experience. Its flexible supply chain resources can reduce the cost of trial and error.

Set up a put option clause: Clearly define core indicators such as GMV growth rate and ROI in the contract, and stipulate an exit mechanism.

Conclusion: Agency operation is not a "hands-off boss", but a "strategic partner"

In 2025, the e-commerce agency operation industry has evolved from the early "agency execution" to "brand e-commerce strategic partners". For brand owners, the essence of choosing agency operation is to purchase an "e-commerce operating system" - by sharing technology, data, supply chain and other infrastructure, they can focus their efforts on product innovation and brand building. In this efficiency revolution, only brands that deeply collaborate with agency operation companies can break through the growth gap in the existing market.