In an engulfed eCommerce logistics space where fast deliveries have become a standard, swiftness alone is not adequate to beat the competition. Consumers, as well as merchants across the globe, are ever more expecting greater choice and convenience in their delivery options. in addition to faster deliveries, they are demanding greater visibility and reliability of their shipment in transit at a low cost. To overcome all the challenges in this market, DHL eCommerce has lately come up with a hybrid product— Parcel International Direct, that offers merchants with the benefits of improved transit times and reliability at a much lower cost.
In an exclusive interaction with Retail360Asia bureau, Sham Alexandra, Managing Director, DHL eCommerce Singapore, speaks about the product and how it can assist the industry.
Excerpts of the interview are as follows…
What is the product all about?
Parcel International Direct Australia is a parcel product catered towards handling the end-to-end process of B2C eCommerce purchases that are destined to Australia. The product offers tracking and visibility, as well as cost-effectiveness to all major cities within four to six business days. This means that e-tailers, such as blog shops, small or large retailers based in Singapore can now reach out to shoppers in Australia by shipping their goods at affordable rates through a postal network in Australia, yet still be able to track and get visibility of their shipments.
How is this service going to assist the e-tailers?
Parcel International Direct Australia is a versatile product that enables e-tailers to leverage DHL’s strength in quality commercial delivery and its extensive network partnerships in Australia. It offers merchants a convenient and time-bound option to deliver parcels weighing up to 20kg to their customer base in Australia, expanding their footprint in the online cross-border market. By providing a solution specific to the eCommerce market, Parcel International Direct Australia allows e-tailers in Singapore to achieve performance and cost effectiveness, particularly as eCommerce shipments have changed from low-volume, bulk orders to high-volume, and small orders straight to consumers.
What will be the added features of this service?
Parcel International Direct Australia will also be able to provide an end-to-end traceability for both the Shipper and Consignee. This is particularly important as consumers are now expecting visibility of their shipments throughout their entire eCommerce journey – from the time they purchase a product to when they receive their goods. Additionally, DHL eCommerce will handle the respective customer service, as well as customs clearance with duties and taxes paid option, and shipment value protection.
How will this product assist in spur in sales?
Australians are ranked as one of the top cross-border shoppers, and the country is very advanced and eCommerce savvy. With Parcel International Direct Australia, retailers in Singapore can tap onto this growth and leverage DHL’s strength in quality delivery and network partnerships in Australia, to deliver their goods in the country.
Will you be targeting any specific product market for your product ie- Luxury, fashion et al?
The beauty of the eCommerce industry is that it is a channel for anyone to sell almost anything online. Therefore, we are not focused on any particular industry. However, with the 20kg delivery capacity, it is likely that a wide range of small items such as electronics, accessories and fashion apparel will be shipped.
Will this service also help in bringing down the cross-border expenses?
Yes, as a hybrid product, Parcel International Direct Australia will offer merchants the benefits of improved transit times and reliability at a much lower cost.
What were the challenges that you wanted to overcome with your new product?
In a saturated eCommerce logistics space where fast deliveries have become the norm, speed alone is not sufficient to beat the competition. Consumers and merchants worldwide are increasingly expecting greater choice and convenience in their delivery options, demanding greater visibility and reliability of their shipment in-transit at a low cost. With Parcel International Direct Australia, this provides merchants with a reliable, high performing time bound service at a competitive price as well as multiple delivery options,which in turn meets the demands of the end-consumers.
How have the dynamics of shipping industry changed the over course of 5 years?
With the proliferation of mobile phones and technology, the global eCommerce market is expanding at a rapid rate. With a wide range of items being sold online, merchants are increasingly looking into cross-border expansion to tap onto the eCommerce opportunity. Additionally, with the growth of online marketplaces, this has also led to an increase in the average basket size and shipment weight. Further to that, eCommerce shipments have changed from low-volume, bulk orders to high-volume, small orders, that are expected to be delivered straight to the individual consumers’ doorsteps.
What essential changes are required in the shipping and delivery mechanism of eCommerce?
To facilitate the growth of eCommerce, reducing trade barriers such as low or unclear de minimis values affecting duty and taxes could be a possibility. Additionally, landed cost solutions also need to be developed, so that the shipper and receiver know the likely duty and taxes applicable for the item ordered.
With increasing eCommerce growth, it is also important for merchants and logistics providers to adapt to the demands and needs of customers, wherever they are. The introduction of multimodal last mile delivery solutions would provide cost-effective delivery solutions and options to even the most remote customers.For example, the use of two-wheel bikes instead of vans would allow for flexibility in the delivery process, ensuring access to narrow lanes or remote areas.