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Tmall offering “try before you buy” option

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As we all know returns is a big factor in ecommerce industry, ecommerce giants are coming up with ways to solve this problem. One of the ways to banned bad buyers, just like Amazon did in last month news article. The other way, which is trending now, is to allow consumer to try before buying. Alibaba’s TMall has introduced this “try before you buy” service for its online fashion shoppers.

The new service will let Alibaba Super Members (ie. loyal customers) with a Zhima credit (ie. Sesame Credit) score of over 550 to order clothes without payment and try them for seven days. If they decide to keep them, Tmall will automatically deduct the cost from their Alipay accounts. If not, shoppers can return them free of charge.

“Try before you buy” service is not new, in fact Amazon has pilot this program last year June 2017. It is called Prime Wardrobe, sharing similarities as its predecessor Stitch Fix and Nordstrom’s Trunk Club, which started in 2016.

In the latest news report 20 June 2018, Amazon’s pilot program is a success that it decided to open it up to all U.S Prime members.

Commentary by Maverick Chung

Source: https://www.wsj.com/articles/banned-from-amazon-the-shoppers-who-make-too-many-returns-1526981401
https://www.alizila.com/tmall-launches-try-before-you-buy-service/
https://www.usatoday.com/story/tech/news/2017/06/20/amazon-launch-try-before-you-buy-clothing-box/103053870/
http://thefederalist.com/2016/05/24/thinking-about-stitch-fix-heres-what-youll-find/
http://www.businessinsider.com/trunk-club-tacks-on-new-try-on-fee-2016-10/?IR=T

 

Cainiao-Led Group to Build HK Logistics Hub

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In line with Alibaba’s vision of a 24 hr local delivery and 72 hr global delivery, Cainiao Network will invest $1.5 billion on a new logistics hub at Hong Kong International Airport.

Hong Kong is not the only location that is part of that vision. Cainiao Network’s RMB 100 billion logistic hubs investment will extend over several cities, Dubai, Hanzhou, Kuala Lumpur, Liege and Moscow.

The new Hong Kong logistic hub will feature smart technology warehousing as unveiled during last month Global Smart Logistics Summit in Hangzhou. This includes, Internet of Things applications, big data, edge computing, artificial intelligence, auto-temperature and humidity, real time monitoring on storage capacities, automated guided vehicles(AGV).

The hub is expected to process over 10 million packages and an additional 1.7 million tons of cargo per year from Hong Kong airport. It would be operational by 2023.

Commentary by Maverick Chung

 

Thailand Post: Acing the logistics of e-commerce

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Thailand eCommerce is in the news this week they are covered in a story in the, Bangkok Post. The great news for APP and APP ePacket Members is the story is covering Thailand Post, expected growth in Cross border eCommerce using the APP ePacket Service. Thailand Post forecast that the ePacket service will generate a revenue of 100 mill baht, in 2019

In the previous year, Thailand Post has achieved revenue of around 27 billion baht. 13 % of the revenue or 3.5 billion is generated from Cross Border ecommerce

Comparing the e-commerce market share in Thailand, Thailand Post have around 30% while Deutsche Post DHL, lead the market with 45%.

Significant growth in C to C and B to C activities, arrival of e-commerce giants like Alibaba and JD.com are attributed to the growth.

For further reading please go to the below links. You may need to sign up, for free, with Bangkok Post.

https://www.bangkokpost.com/business/news/1476017/thailand-post-aims-to-grab-bigger-slice-of-overseas-pie

https://www.bangkokpost.com/business/news/1478345/acing-the-logistics-of-e-commerce

Commentary by Maverick Chung
Image source: Thailand Post

 

Singapore: Common parcel locker system to be piloted in October

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Singapore will be piloting common parcel locker system in October. Lockers will be conveniently located within 250m of residential apartments. Pilot lockers will be located west and north-east of Singapore. Punggol will have 39 locker sites, run by Singapore Post. Bukit Panjang will have 23 locker sites, which will be run by logistics provider Blu Logistics.

This approach is interesting as whilst it will provide low cost entry into parcel lockers for all the small partners, it will remove some of the advantages the larger delivery networks have enjoyed as they would have had exclusivity of use before.

Its also interesting to see retailers in the initial group of interested parties, as this would enable them to bypass traditional delivery companies and distribute more of their sales themselves.

Fifteen major logistics industry players, online merchants and marketplaces have signed a Memorandum of Intent with IMDA to use the common parcel system. These include NTUC Fairprice, Ninja Logistics and Lazada Express (Singapore).

While industry players are interested in using the common parcel system, details on costing revenue collection, or maintenance by parcel locker providers (Blu and SingPost) is not mentioned in the article.

Commentary by Maverick Chung

 

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