AliExpress and Cainiao jointly launched the East China Preferred Warehouse, and the coverage of "10-day delivery" will be expanded to 18 countries

In 2020 , China's cross-border e-commerce grew rapidly. According to data from the General Administration of Customs, cross-border e-commerce exports reached 1.12 trillion yuan, an increase of 40.1% . In order to cope with the rapid growth of cross-border export orders and provide Chinese foreign trade merchants with lower-cost and more efficient cross-border logistics solutions, Alibaba's cross-border retail e-commerce platform AliExpress and Cainiao officially opened the East China Preferred Warehouse in Yiwu.

On May 27, AliExpress held the opening ceremony of Yiwu Service Center and the opening ceremony of East China Preferred Warehouse in Yiwu Land Port E-commerce Town. Yiwu Vice Mayor Ge Qiaodi attended and cut the ribbon.

The warehouse is located in the East China hub of Cainiao Export Logistics, and is equipped with digital assembly lines, gantry , Lemo and other intelligent logistics equipment. The first phase will cover 10,000 square meters, and is expected to expand to 30,000 square meters by the end of 2021 , when it will become the largest preferred warehouse in the country.

AliExpress Yiwu Service Center Opening & AliExpress Cainiao East China Preferred Warehouse Opening Ribbon Cutting Ceremony

Previously, AliExpress has teamed up with Cainiao to launch preferred warehouses in Weihai, Dongguan and Hong Kong. The opening of the East China warehouse in Yiwu marks a further upgrade of the preferred warehouse network jointly built by the two parties, adding another important weight to the establishment and improvement of the multi-warehouse linkage intelligent allocation system.

The Preferred Warehouse is an important part of the infrastructure of the cross-border logistics supply chain. It can be regarded as the "forward warehouse" of the cross-border logistics route , and is usually set up near the domestic customs clearance port. The Preferred Warehouse can provide "full logistics trusteeship" services for merchants who have settled in it. Merchants only need to prepare the goods here, and the subsequent delivery, customs clearance, and fulfillment will all be completed by AliExpress and Cainiao.

Compared with merchants shipping by themselves, shipping from the Preferred Warehouse can save more than 20% of warehouse rent and labor costs . In addition, because the Preferred Warehouse is located in China, the stocking cost will be much lower than that of overseas warehouses, which can greatly reduce the financial pressure of small and medium-sized merchants. Preferred Warehouse goods can be shipped to more than 200 countries around the world. Compared with overseas warehouse goods, the coverage is also wider, which is particularly suitable for new product testing and potential hot products.

Since its trial operation at the end of October last year , the inventory of AliExpress Cainiao's South China Preferred Warehouse has exceeded one million in half a year, and the daily delivery order volume has increased by more than 100 times .

70-80% of the goods entering the South China Preferred Warehouse come from the industrial belt of the Pearl River Delta, mostly from Shenzhen, Dongguan, Guangzhou and Foshan. The Preferred Warehouse has brought huge benefits to merchants in terms of reducing costs and improving efficiency in logistics, so the East China merchant group centered on Yiwu has a strong call for the opening of Preferred Warehouses in East China.

As the world's small commodity free trade center, Yiwu's foreign trade performance is very impressive. In the first quarter of 2021, the cross-border e-commerce retail export transaction volume reached 19.665 billion yuan, a year-on-year increase of 21.05% . Merchants in Yiwu mainly engage in sports, toys, small accessories, maternal and child products, clothing and other categories, most of which are very suitable for optimal warehouse delivery.

It is reported that AliExpress has cooperated with the Yiwu government to set up the AliExpress Yiwu Global Service Center in the local area to provide merchants with various services such as settlement, incubation, and support, to escort Yiwu merchants to go overseas.

"Yiwu is an important source of merchants for AliExpress and also the most important industrial belt in East China. Bringing the Preferred Warehouse closer to merchants will help further reduce costs and speed up delivery," said Deng Xiang, head of the Preferred Warehouse for AliExpress. It is revealed that, like the Preferred Warehouse in South China, the Preferred Warehouse in East China will also provide merchants with subsidies such as three months of free warehouse rent and a 10% discount on the last-mile freight. In addition, the packaging and labeling processes of overseas warehouses can also be done in advance at the Preferred Warehouse, which will reduce costs by about 70 %.

"As the first preferred warehouse of AliExpress in East China, Yiwu Preferred Warehouse helps Yiwu merchants to enter the warehouse nearby and send goods from Hangzhou Port to all parts of the world through Cainiao's global parcel network. The logistics efficiency is improved by more than 48 hours, creating an extremely cost-effective and fast logistics experience for overseas consumers." Zhao Jun, head of global solutions and growth markets of Cainiao's export logistics division, said .

Interior view of the AliExpress Cainiao East China Preferred Warehouse Distribution Center

The layout of the preferred warehouse network established by AliExpress and Cainiao in North China, East China, South China and Hong Kong has been completed. A transfer network has been formed between the preferred warehouses to automatically help merchants match the best trunk logistics, save logistics costs and improve fulfillment time.

According to reports, this year, AliExpress will also work with Cainiao to increase the frequency of charter flights by 50%, and the frequency of daily charter flights will reach the level of last year's Double 11. The areas that can enjoy the "10-day delivery" shopping experience will also be expanded to include Spain, France, the Netherlands, Belgium, the United Kingdom, Germany, Portugal and other countries, and will be expanded to AliExpress's 18 leading market countries, covering major regions such as Europe, Russia, Brazil, and the United States.

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