"Global 5-day delivery" is launched, Cainiao International Express becomes the anchor of merchants

Under the high pressure of global inflation, the growth of retail e-commerce business is limited, the cost-effectiveness advantage of Chinese products becomes increasingly prominent, and the trend of export cross-border e-commerce is positive.

According to preliminary customs statistics, in the first half of this year, China's cross-border e-commerce imports and exports reached 1.1 trillion yuan, a year-on-year increase of 16%. Cross-border e-commerce has become an important source of orders for many foreign trade companies, helping China's foreign trade to stabilize its scale and optimize its structure . At present, the proportion of China's cross-border e-commerce imports and exports in the overall foreign trade has increased from less than 1% five years ago to about 5% , and the industry is still developing rapidly.

Amazon, Temu and other platforms are competing with each other, and the business flow is surging. Cross-border e-commerce needs faster and more stable logistics, and international parcels are a faster one. However, the actual situation is that the international express delivery industry is mixed, and sellers are constantly stepping on landmines in the delivery process. Cainiao International Express has become a "clear stream" in the field of cross-border logistics with its "hard work".

Penetrating the fog of inflation, cross-border sellers' performance has generally increased

Stimulated by the epidemic, the global e-commerce penetration rate has increased rapidly, and the market pie is getting bigger and bigger.

In 2027, the total volume of global retail e-commerce outside of China will reach 4 trillion US dollars, with Europe and the United States as the core overseas markets. In the global cross-border B2C e-commerce market, North America occupies a dominant position, accounting for 45.80% of the total share last year; another core region is Europe, where local consumers are increasingly inclined to purchase from international markets.

In the past two years, inflation in Europe and the United States has been high, and the cost of living has soared. People have begun to tighten their wallets and reduce non-essential expenses. When shopping, they prefer discounts and shop around, and use "buy now, pay later" to ease payment pressure. In the context of economic downturn, high-cost-performance products have shown obvious advantages.

High inflation in Europe and the United States requires low-priced goods to cool down, and cross-border e-commerce business has become a "firefighter". To a certain extent, it has alleviated the inflation problem in the European and American markets. As a result, the industry has achieved a growth rate far exceeding that of traditional fields, and cross-border sellers have also entered a new round of growth. According to the data of the General Administration of Customs, in the first half of 2023, the total export volume of China's cross-border e-commerce reached 821 billion yuan, a year-on-year increase of 19.9%.

Huanjin Technology, a large cross-border seller, felt this strong surge.

"China has a well-developed supply chain, so inflation is more advantageous for domestic sellers. We have product cost advantages, and e-commerce delivery is faster than local purchases. The advantages of cross-border e-commerce are becoming more and more prominent." Tommy , logistics director of Huanjin Technology , said, "This year's growth is obvious. 70% of merchants are optimistic about this year. Most companies have seen a significant increase in export volume, up 50% or even doubling compared to last year. The average market growth rate should be above 30%."

Data from e-commerce platforms can better illustrate the overall market situation. During the two-day Prime Day promotion in 2023, US e-commerce sales increased by 6.1% year-on-year to US$12.7 billion. This was also the largest sales day for Amazon Prime members.

The cross-border logistics industry is complex and sellers frequently run into problems

Chinese goods are shipped overseas, and the logistics link in the downstream of the business flow is crucial. Buyers' main demand is to receive the products quickly and completely, and timeliness even affects their decision to place an order. Cross-border sellers hope to provide local logistics services to expand their market share. However, the cross-border logistics chain is long and has many links, so it is not easy to achieve.

Independent sites and third-party platform sellers have a high demand for international parcels. At present, the international parcel business is still dominated by outsourcing services and intermediary logistics activities. There are many problems such as patchwork logistics, lost items and delays, and sellers are constantly falling into traps. At the same time, the industry reshuffle is accelerating, and some companies have been eliminated and stopped receiving goods through international express export business channels.

Relatively speaking, international parcels lack delivery guarantees, and the overall delivery rate is limited. If the goods are lost or damaged, it is difficult to obtain compensation. When shipping, sellers mainly focus on three points : timeliness, delivery rate, and value guarantee. Sellers with high value of goods pay particular attention to value guarantee.

AGM, an outdoor mobile phone brand, said: "We have seen many cases where products were swapped. For example, if we sent an Apple phone, the customer might receive a phone of another brand, or even no phone at all. This ratio is about 5‰, but there is no proof of successful delivery for small packages, so it is difficult to provide evidence, and we can only pay compensation in the end."

One reason for this situation is the spliced ​​logistics model, which divides the entire delivery process into several segments, resulting in a high error rate. For example, when a package is sent from China to the Netherlands, the tracking information may not be complete and the information chain may be broken; in serious cases, the safety of the package cannot be guaranteed.

The leakage of accounts is the biggest "black swan" in the logistics industry this year. Sellers paid the fees to logistics companies, but the latter did not pay them to UPS or the US Postal Service. Under strict inspection by UPS and other companies, many goods were detained and could not be delivered to the destination. The relevant sellers were greatly affected and faced the dual risks of cargo damage and customer complaints.

The entry threshold for patchwork logistics is low, which has also given rise to some charging chaos.

A vendor complained that he sent out a batch of international express deliveries during the epidemic. The next day, he confirmed with the freight forwarder several times that the goods had been delivered to UPS. However, on the third day, the freight forwarder temporarily charged him a warehousing fee of 10 yuan/kg. The goods were sent out only after paying this fee, but the logistics progress was very slow, and it was not updated after the transfer. The seller asked the freight forwarder, who said that it was good enough to be able to pick up the goods. They had no control over how to send them, and it was useless to urge them. The seller was so angry that he could only check the shipment information online.

Overall, the international express delivery industry is uneven and chaotic, and sellers have suffered a lot in the delivery process. Stability, efficiency and affordability have become the rigid needs of today's cross-border sellers.

Cainiao: A Breath of Fresh Air in the Cross-Border Parcel Industry

Appropriate logistics channels can not only solve basic delivery needs, but also become an accelerator for e-commerce business. Different from the common model in the industry, Cainiao International Express has built a global end-to-end parcel network with full process control, and has launched a number of "late" compensation services. Its high-quality service makes it a "clear stream". Based on comprehensive considerations of several indicators such as timeliness, service quality and price, Huanjin chose the large company Cainiao and has been cooperating with it for a long time.

In fact, Cainiao has been serving small and medium-sized cross-border sellers since its inception . According to Alibaba Group's 2023 fiscal year annual report, Cainiao handles more than 4 million cross-border and international parcels per day. Since its inception as an international express delivery company, Cainiao has built a parcel network covering more than 200 countries and regions, providing express, standard and other logistics products and solutions for all merchants.

The best logistics infrastructure

Amazon, Temu and other platforms are in fierce competition, and cross-border e-commerce needs faster and more stable logistics. How can it be faster? The simplest way is to increase resources, improve stability and shorten delivery time.

The splicing logistics network is faster, but this model has been criticized. Cainiao did not follow suit, but chose to build its own end-to-end fully controllable international logistics. It has transformed into an "infrastructure maniac", building infrastructure to shape the network trunk, and using digital technology to implant the "brain" into the system, and finally built a global international express network with top-notch software and hardware . This network has been running efficiently .

Cainiao International Express divides the entire delivery process into four sections: ABCD, which include domestic collection, trunk transportation, overseas hub to destination country, and delivery in destination country. Domestic collection warehouses cover more than 200 cities in China, and after the goods are distributed, they are transported by air to achieve "one piece to the world". After arriving at the destination country, they are processed by three eHubs and 18 distribution centers, and finally directly reach consumers through local self-built networks or overseas self-pickup cabinets.

The "digital brain" is the most powerful aid. Cainiao has deployed 6 eHubs around the world , introduced smart cargo stations, smart distribution center systems and a series of automated equipment to improve the controllability of the supply chain. Digital logistics technology has fully armed the transportation chain. Cainiao's IT system is connected to the customs system, which can achieve customs clearance in seconds; the self-developed overseas distribution system ( GXMS ) doubles the efficiency of cross-border parcel distribution; with smart order consolidation, overseas consumers can truly feel that "buy more and get it faster."

This parcel network is still expanding. This year, Cainiao will increase logistics construction in key overseas regions such as Europe, America, and Southeast Asia, and build local logistics networks at a rate of 1-2 countries per year.

The effect of Cainiao's hard work is reflected in the user experience. A Shenzhen outdoor products seller said that in 2021, both sea and air transport were at their peak, and Cainiao chartered flights to obtain stable space helped him stabilize prices. Now Cainiao International Express has 250 chartered flights per month, with high flight frequency and stronger capacity.

In the international express delivery industry, logistics companies mainly transport goods by combining domestic and foreign resources, which results in high uncertainty in cargo volume and delivery time. Cainiao International Express's "One Network" solves this problem, and thus has the advantages of strong stability and fast delivery time.

Timeliness "Pioneer"

Previously, Cainiao focused on high-cost-effective delivery, such as the 10-day delivery for $ 5 , which was popular among the people. Now, as sellers have higher and higher requirements for timeliness, the demand for express delivery is also rising. Therefore, when general logistics companies still need half a month or even longer to complete a shipment to Europe and the United States, Cainiao began to create new products with extreme timeliness.

In June this year , Cainiao announced that it would join hands with AliExpress to launch the "Global Five-Day Delivery" international express line within the year . The goal is to start from key national markets and gradually achieve cross-border package delivery within 5 working days.

This is a heavy plan. Cainiao International Express Line is expected to speed up package delivery time by 30% compared to the industry average. This will be achieved through refined operations and in-depth integration of key nodes.

Cainiao's domestic collection network has undergone "front-line integration", reducing the number of times packages are handed over, saving an average of 1-2 days of logistics time; on the trunk transportation side, Cainiao International Express has increased its air transport capacity by increasing flight density, achieving "daily flights" to key overseas markets, while also grading special and general cargo. Parcels that enter the trunk warehouse on the same day can be boarded as quickly as an hour.

After the express arrives at the destination country, it can enter the Cainiao overseas supervision warehouse near the airport, where distribution and clearance work can be carried out. The integrated warehouse and warehouse model can increase logistics efficiency by more than 50%.

This refined operation makes the connection between each delivery link smoother, the cargo handling more efficient, and ultimately achieves overall acceleration of express delivery. The squeezed time is the time efficiency bonus, which will be converted into sales competitiveness of sellers and help them seize more market share.

Put in the hard work to provide service

Not only speed up, but also improve quality. In the recently upgraded UK special line, Cainiao International Express launched "Express Line" and "Standard" logistics services to all cross-border sellers and e-commerce platforms. The Express Line product promises "compensation for late arrival", which solves the urgent needs and worries of sellers with high timeliness requirements.

Prior to this, Cainiao International Express's "committed delivery, compensation for late delivery" service has been put into use in multiple markets of AliExpress, shipping to sellers in 22 countries with worry-free, economical and simple standard services. Products on AliExpress are affixed with the "X-day delivery, compensation for late delivery" logo, which is tantamount to a conversion tool.

In fact, compared with the visible improvement in delivery time, improving after-sales service is a "hard work" that often takes a lot of effort but has little effect. However, this is related to the safety of sellers' shipments and the buyer's experience, and has become one of the focuses of Cainiao International Express.

For example, cross-border reverse logistics is the most troublesome, and Cainiao International Express is solving this problem. It launched the "local return" service in Spain - within 15 days of receiving the goods, local consumers can apply for free returns, and receive a refund within an average of one week, which greatly improves the user experience.

These services provide insurance for sellers’ shipments. Mobile phone brand AGM said that after using Cainiao International Express, the logistics situation has greatly improved. He described it as “guaranteed value of goods”, “The most important thing is that I feel more secure.”

The reason is that Cainiao Express has been continuously investing in soft and hard logistics. Thanks to its strong transportation network, Cainiao Express is stable, fast, and dares to promise compensation, which really allows sellers to know what is going on with their shipments. As the industry reshuffle is becoming increasingly fierce, sellers are inevitably worried about changes in their cooperating logistics companies. Cainiao's "big company" attributes give them peace of mind, so they choose Cainiao Express to provide them with more sophisticated services.

Advocate for small and medium-sized businesses

Small and medium-sized sellers need to balance delivery time and cost, but international express delivery companies charge high fees. For example, if a piece of goods weighing 1kg and with a volume of 500cm³ is sent from Shanghai, China to New York, the price of DHL, FedEx and UPS is almost 400 yuan. This fee makes ordinary sellers of goods discouraged.

In comparison, Cainiao International Express is more friendly, and it provides delivery options suitable for small and medium-sized sellers. Its main products include 10-day delivery for US$5 and 20-day delivery for US$2. The newly launched UK standard express is tailor-made for small and medium-sized sellers, with a 12-day delivery rate of 98.6%. Sellers can save about 10 yuan in postage on average per order when shipping through this channel, which is a very economical and affordable product.

Cainiao International Express offers lower-priced products, but its services are not downgraded compared to its peers, and it even provides additional services such as compensation and return. How did it do this? One reason is that Cainiao's super scale effect has already emerged. At its peak, Cainiao's domestic collection volume reached 10 million orders per day. The huge volume of goods diluted the transportation cost of a single courier, providing sellers with the most cost-effective service.

Cainiao International Express meets the multi-level delivery needs of sellers of different sizes. Backed by a huge self-controlled international logistics network, Cainiao International Express constantly refreshes the industry's time efficiency, provides suitable logistics products for small and medium-sized sellers, and comprehensively raises the industry's service standards from multiple angles of delivery, compensation, and returns.

Conclusion

The global cross-border e-commerce wave is surging, the industry has a broad prospect, and cross-border logistics has a positive effect on the flow of business, and the responsibility is heavier than Mount Tai. Cainiao has opened up a logistics network with both soft and hard capabilities, becoming the industry's leading time-efficiency pioneer. At the same time, it has also developed a good ability to serve merchants, creating a fast, stable and inexpensive international express service.

It now seems that Cainiao, with the support of the "top-level" global logistics infrastructure , has taken on the responsibility of being the " anchor" of merchants , and has provided strong protection for tens of thousands of cross-border sellers in selling their goods around the world.