Overview

Logistics often takes “afterthought” status in developing a complete e-Commerce strategy. For western companies selling in China, however, logistics and fulfillment must be integrated into every phase of the process. From clearing customs and ERP integration, to aftersales support, your 3PL solution is critical at every stage of your China revenue model.

 

While you can find many Chinese 3PL providers willing to partner with you, WPIC has narrowed down those with the proven ability to serve a western company reliably to a handful. We have worked with them in products from refrigerated produce to electronic goods. Together, we offer the peace of mind brought by outsourcing to an experienced provider with western best practice in the wheelhouse.

Process

Impact

A New Zealand supplement brand, having success with mail order, needed a 3PL solution in order to reduce delivery times and increase market share.

 

Tactics:

  1. Facilitation of licensing with China State Food and Drug Administration
  2. Facilitation of online meetings with WPIC 3PL network, consultation on preferred partner selection
  3. Training of 3PL manager and dedicated CSR to provide brand service standards and experience
  4. Integration of 3PL tracking software into site’s Magento platform for real time tracking of orders and other relevant metrics

 

Results:

  1. Delivery time to mainland China customers reduced from 3 weeks average to 3 days maximum
  2. Able to offer free shipping, sales boosted by 27% as a result
  3. Other Pertinent Metrics

 

order-shipping accuracy: 82% to 99%

 

China inventory accuracy: 92% to 99%

 

Returns due to damages: 6% to <1%

 

Delayed delivery complaints: 15% of orders to <1%

Intelligence

Evolving Cross Border Logistics Options for China eCommerce

One-to-three day delivery is not necessarily a critical factor in converting a Chinese online consumer, thank goodness. The multi-week wait that overseas purchases entail is acceptable, as evidenced by the fast growing cross-border sector, worth $33 billion in China in 2013. However, that wait is acceptable if the product in question is not available domestically in China, or if that product available is of questionable authenticity, or if the cross-border option delivers substantial savings. 

No matter the case, cross-border ecommerce with China has long been hampered by payents, as so few Chinese have international credit cards, and incorporating a Chinese payment gateway entailed China establishment. Now, however, Alibaba has launched ePass, which allows relatively easy integration of Alipay, China's preferred payment gateway, into a western site, as well as remittance of payments in 14 international currencies. What's more, Alibaba takes care of the logistics by giving you a warehouse address to ship to, and taking care of the rest, including labeling. A major step forward in logistics and fullfillment for non-China-established companies. Amazon and JD will soon be coming forward with comparable services, heralding a more competitive environment for cross-border services that will prove beneficial to the western vendor.

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