Cainiao Partners Lazada to Roll Out US$7 Million Logistics Incentive Program

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Cainiao Network, (“Cainiao”), the logistics arm of Alibaba Group, today announced its partnership with Lazada, the leading eCommerce platform in Southeast Asia, to roll out an RMB 50 million (US$7.76 million) cross-border logistics incentive program to expand product offerings and accelerate deliveries from China to Southeast Asia. The incentive will be issued to merchants in the form of marketing vouchers which can be funnelled into their marketing budget to promote product offerings on Lazada’s eCommerce platform. The pilot launch from June to August has already benefitted 4000 merchants, with a return on investment of up to 20 times.  

Efforts will also be made to upgrade and optimize its cross-border logistics network to provide one-stop diversified services for Southeast Asian consumers. This will culminate in a 50 per cent improvement in delivery timeliness, with Chinese goods reaching Southeast Asian consumers in six days. Following the upgrade, central warehouses in China will dispatch 99 per cent of the cross-border parcels within 24 hours, and overseas warehouses will achieve three-day delivery for 88 per cent of the parcels.

In addition, Cainiao added a new warehouse in Nanning, China, close to the Vietnam borders to facilitate direct movement of goods into Southeast Asia instead of transiting in Shenzhen. Merchants will also be able to leverage the newly-launched intelligent goods restocking system, which uses big data analytics to accurately determine restock volume and improve profit margins by minimizing occurrences of stock shortage for popular items and overstocking of products. 

According to e-Conomy SEA 2020 Report, 70 per cent or 400 million people living in the six largest economies in Southeast Asia are now online, with the eCommerce industry GMV projected to reach US$172 by 2025. This move will allow Lazada to better cater to the online consumers and meet their needs for more variety and value-for-money eCommerce products. In addition, by streamlining and optimizing cross-border logistics, Lazada will be able to attract more Chinese merchants to participate in cross-border eCommerce activities, thereby allowing Southeast Asian consumers to gain access to a wider array of products at a reasonable price. This will benefit over 110 million annual active users on Lazada and support its 90 per cent year-on-year order volume growth to date.

This will build upon Cainiao’s community-based parcel consolidation stations in 20 Chinese cities and distribution centres in export-focused cities of Yiwu, Shenzhou and Quanzhou, as announced this August, and increase Lazada’s cross-border logistics efficiency by 50 per cent, where consumers in Thailand, Singapore, Malaysia and the Philippines will be able to receive their parcels in as fast as three days. Here, Chinese merchants only need to dispatch their goods to the nearest collection point, and Cainiao and Lazada will provide end-to-end logistics service.

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