Alibaba adds new shipping, logistics service
Alibaba.com, the world's largest business-to-business e-commerce company, yesterday introduced a new service that it says will help mainland suppliers and international buyers save up to 30 per cent on shipping costs for small orders.
The Hangzhou-based company's so-called 'Fulfilment' service uses a mainland partner, GELS Enterprise Shanghai, to handle all the warehousing, shipping and logistics needs of those who buy and sell goods through the AliExpress wholesale platform.
Chief executive David Wei Zhe said adding the Fulfilment service to AliExpress would 'further extend the international buying power of small businesses around the world, making the shipping and delivery of their business-critical goods as easy, safe and convenient as possible'. AliExpress offers smaller-quantity orders, instant online transactions and an escrow service to protect small mainland suppliers and their buyers. It has more than 10 million listed products in more than 40 categories.
The savings from the Fulfilment service were achieved through bulk shipping deals and through combining multiple international shipments into one by Alibaba.com's Shanghai-based logistics partner, which is also offering discounts from international carriers like UPS.
Alibaba.com, which operates in more than 240 markets worldwide and had 56.72 million registered users as of September, also offers small businesses using AliExpress the option to contract GELS to check goods at the warehouse before shipment and to track shipments online. 'Only those companies with a mastery of logistics as part of their value proposition will succeed in China's e-commerce race,' Deutsche Bank analysts in Hong Kong said last year.