DHL eCommerce foresees plans to build an Outbound Cross-Border eCommerce Distribution Center in Narita, Japan. The facility is anticipated to be completed by April next year and will broaden the range of e-commerce logistics services available to e-tailers and marketplaces operating in the country.
According to DHL, the new shipping products specifically designed for e-tailers will offer greater choices to reach consumers in Europe, US and UK. Focused on reliability and value-for-money, the services are ideated according to the unique needs of e-tailers and marketplaces in the Japanese market. This latest development by DHL eCommerce will help drive Japan’s booming cross-border e-commerce market, which is growing at a CAGR of 16 per cent and estimated to hit over €1.1 billion in 2018.
Further DHL also said that Parcel International Direct, a cross-border shipping product, would offer affordable deliveries from Japan to US and UK and that this product promises transit time of 4-6 business days, which sure can be witnessed as a game changing move. Another cross-border shipping product, DHL GlobalMail Packet Plus will offer the best rates for Japan – Europe deliveries, with transit times of 5 to 10 business days and a high degree of visibility into the status of packages.
These products will assist Japanese e-tailers in handling the increasing pressure, when it comes to servicing more overseas customers, making timely deliveries, and keeping operating costs low. Major marketplaces will also be better equipped to handle rising volumes of e-commerce deliveries and offer Japanese e-tailers a global reach and value-added services.
Yoshihiko Sasaki, Managing Director, DHL eCommerce Japan said, “We are seeing incredible growth in the Japanese cross-border e-commerce market and look forward to helping local players surmount their challenges. Our solutions offer easy one-stop gateway services for e-tailers, enabling them to deliver greater customer experiences while remaining in control of their costs. In addition, we will help them connect with overseas markets by partnering with popular marketplaces to deliver reliable services with a global reach.”
With an estimated cross-border e-commerce value of €38.5 billion, US is locked as one the top export destinations for Japan’s e-commerce products. Approximately 25 per cent of digital shoppers in the country have made a cross-border purchase in the past 12 months. Europe also presents a tremendous opportunity for Japanese e-tailers. There are currently 303.1 million digital buyers in the region and total e-commerce sales volume has hit €349.4 billion.
The distribution centre will be co-located with the Japan Global Distribution Center in Narita established by one of DHL’s divisions. Leveraging a cross-divisional approach, this will help bring Japanese e-tailers more customers overseas, and enable them to also tap into comprehensive supply chain solutions. This means that customers who utilise the new DHL eCommerce offerings, will get access to more in-depth supply chain expertise and an extensive logistics network that serves over 220 countries and territories globally.
Sasaki further added, “The power of e-commerce lies in its ability to break physical barriers. E-commerce companies are not limited by geographical borders and have the flexibility to offer services and products to customers in other countries. By combining the deep understanding of the Japanese market which DHL eCommerce has, with the warehousing and transport management capabilities of our sister division, we will be able to explore operations such as fulfilment as part of a global partnership for our customers.”