Based on the economic data from 273 prefectural cities between 2008 and 2021, taking the “Taobao Village” policy as a quasi-natural experiment, the impact of BOP e-commerce on urban high-quality economic development and its mechanisms were explored. The spatial effects involved were further investigated. It is found that BOP e-commerce significantly promotes high-quality urban economic development, the conclusion remains robust across various tests. Regarding the mechanisms, industrial structure, human capital and population density positively moderate the impact of BOP e-commerce on high-quality economic development in China. In terms of spatial effects, the development of BOP e-commerce exhibits spatial spillover effects that can enhance the high-quality economic development of surrounding cities. Therefore, governments at all levels should strengthen support for BOP e-commerce, enhance inter-regional cooperation, and improve the quality of human capital.