AliExpress and Cainiao International Express upgraded their logistics in the Middle East, and merchant orders increased by 40%

There is another good news from the Middle East cross-border market.

The reporter learned that AliExpress and Cainiao International Express have fully upgraded their cross-border logistics services in the Middle East, helping merchants to speed up fulfillment and improve user experience. After one month of trial operation, AliExrpess's order volume in the Middle East has increased by 40 % month-on-month .

The mysterious and rich Middle East has a huge demand for Chinese goods and high purchasing power, and has always been a hotbed for cross-border e-commerce. However, logistics issues in the Middle East have troubled Chinese merchants who want to make a big splash . For a long time, the Middle East market has mainly relied on postal customs clearance and delivery, and door-to-door delivery is not possible. Under the scorching sun, local consumers need to go to the post office to pay VAT fees before they can pick up their packages .

The logistics upgrade service launched by AliExpress in cooperation with Cainiao International Express solves these pain points for merchants. By joining the upgraded "Worry-free Consolidation", merchants can enjoy the DDP (Delivered Duty Paid) service, which means that Middle Eastern consumers can pay VAT (consumption value-added tax) online when placing an order, and no longer need to pay additional fees when picking up the goods . Merchants who join this service will also enjoy exclusive logistics channels and "full-order free shipping" services, and can deliver goods directly to consumers' homes.

More importantly, according to Cainiao International Express, the upgraded fulfillment time can be shortened from the original 30 days to 12 days , and the logistics cost is reduced by 30 % based on the current Saudi Express standard quotation . In addition, the entire chain of the AliExpress platform is marked with "X-day delivery, late compensation", " VAT included " , and "Free shipping for orders over 50" to help merchants improve purchase conversion rates.

In recent years, Cainiao International Express has continued to invest in the construction of logistics infrastructure in the Middle East. Public data shows that in August last year, Cainiao opened its first Middle East overseas warehouse and distribution center in Israel . In June this year , Cainiao began to operate an overseas warehouse in Dubai, which is one of the largest overseas warehouses opened by Chinese companies in the UAE, and its services cover the entire Middle East.

The reporter interviewed many merchants and they all reported that after joining "Worry-Free Consolidation", the Middle East orders increased significantly. The head of a well-known consumer electronics seller said that the order volume has more than doubled, and Saudi Arabia has become their main market from a non-core area. She thinks that paying VAT online is convenient and fast, which greatly optimizes the consumer experience, so consumers are more willing to place orders.

However, merchants should note that after the logistics service upgrade, since consumers pay VAT online, the product price should include VAT ( Saudi Arabia tax rate is 15% ); in addition, some products may also participate in the "free shipping for full purchase" activity. Merchants need to adjust the regional pricing in the Middle East based on these changes and their own business conditions.

The Middle East logistics upgrade of AliExpress and Cainiao International Express will be launched first in Saudi Arabia on July 25 , and will be launched in other Middle Eastern countries such as the UAE, Qatar, Kuwait, Bahrain, Oman, etc.

AliExpress

Cainiao International

Middle East Logistics