Cainiao officially opens East China logistics warehouse, and intelligent order consolidation technology helps cross-border merchants speed up during peak season

The " 2021 (Part 1) China Cross-border E-commerce Market Data Report" shows that the scale of China's cross-border e-commerce market was 6.05 trillion yuan in the first half of 2021, and the market size is expected to reach 14.6 trillion yuan in 2021. In terms of import and export structure, exports account for 77.5%.

On August 18, Cainiao officially opened its East China logistics warehouse in Hangzhou, Zhejiang. This is currently Cainiao's largest logistics warehouse in the country , taking into account both package storage and processing capabilities. The warehouse is equipped with intelligent logistics equipment including digital assembly lines, gantry, cross-belt sorters, Ptl, IoT , etc.

The East China Consolidation Warehouse is located in Hangzhou Airport New Area, about 1.2 kilometers away from the East China Distribution Center and about 3 kilometers away from Hangzhou Xiaoshan Airport . The transportation categories include sports, toys, small accessories, mother and baby products, clothing, etc. The main destination countries include Europe, the United States, Russia, Latin America and other markets.

The main function of the logistics warehouse is to realize intelligent order consolidation through intelligent equipment . Intelligent order consolidation is a digital logistics technology created by Cainiao's cross-border parcel network . When overseas consumers use the same address to shop at different stores on AliExpress, after intelligent order consolidation, the parcels of different merchants will be packaged into one parcel after being collected, and the subsequent trunk line, destination country and terminal delivery will be completed, and finally delivered to the consumer. The parcel will be upgraded from the previous 30-50 days of ordinary mail routes to direct air routes within 20 days, and some areas can be upgraded to 10 days for 5 US dollars.

Through this technology, consumers ’ delivery time is shortened by nearly half, and all recent parcels can be delivered together without having to go to the pick-up point or post office multiple times. For merchants, not only does the parcel logistics time shorten, but the cost will not increase at all, and the disputes caused by the lack of logistics details in the past are avoided .

Simply put, smart order consolidation is to upgrade the logistics timeliness of cross-border packages through economies of scale, reduce the logistics cost of a single package, allow merchants to upgrade logistics products for free, and enable consumers to "buy more and get it faster."

"For some products, we pay the logistics fees to get them to consumers faster in order to save time. Especially for products we are confident in, we pay more attention to subsequent repurchases and sharing effects on social media." Nicole, the person in charge of LUCKY LASH AliExpress , told reporters that their store uses the above method to capture first-time consumers. Several popular products in the store have a repurchase rate of more than 50%, and all eligible products in the store are included in the smart order.

The beauty brand LUCKY LASH mainly sells various types of false eyelashes . Its products are lightweight and sold at around $2-3 per piece. They are mainly sold to countries such as Spain, France, and Russia. Nicole mentioned that compared with DHL, UPS and other companies, the cross-border parcel service provided by Cainiao has reduced the cost of goods in cross-border logistics and increased the competitiveness of goods. Even if overseas consumers buy a box of products, including taxes, it is still $5 or $6, while if they buy them locally, a box of products often costs more than $10.

According to past experience, cross-border e-commerce gradually enters its peak season after August each year, and reaches a peak in parcels in November, such as the upcoming AliExpress 8.28 and Double 11 promotions. In July 2021, the "full upgrade" combined order logistics speed-up plan was expanded to 22 countries, and it is expected that during the Double 11 period, consumers in 50 countries will enjoy smart combined orders .

Su Yu, head of cross-border solutions at Cainiao's export logistics division, told reporters that during the big promotion period, overseas consumers are more willing to buy multiple products in different stores. At this time, smart order consolidation can cover a wider range of consumers and speed up the delivery of packages. The East China Consolidation Warehouse will significantly improve the efficiency of order consolidation. On the one hand, smart equipment such as digital assembly lines and cross-belt sorting machines ensure the operational efficiency within the warehouse. On the other hand, after order consolidation, packages can fly overseas faster. For example, once Yiwu merchants' European-bound ordinary mail packages are successfully upgraded to direct air routes, they can be directly consolidated at the East China Consolidation Warehouse, shipped out of the warehouse and boarded a chartered flight to fly overseas.

In addition to cross-border parcel services, Cainiao also provides merchants with overseas warehouse-to-warehouse services. Combining domestic preferred warehouses and global overseas warehouses such as drones and hand-sewing machines, Cainiao not only solves the problem of direct returns containing magnets through customized transportation solutions, but the overseas warehouse-to-warehouse model also reduces the freight by 50% compared to direct shipments, helping merchants increase their Double Eleven sales by 600% and international logistics capabilities, providing cross-border merchants with diversified export supply chain solutions.

In March 2021, the average daily cross-border parcel volume of Cainiao's global parcel network exceeded 5 million pieces, continuing to rank among the top four in the world. Among them, the "5 US dollars in 10 days" logistics product has covered European countries such as Spain, France, the Netherlands, Belgium, the United Kingdom, Germany, Portugal, etc., and is expected to cover 20 countries around the world this year , allowing more merchants to deliver to the world with the money for a cup of coffee.

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