Cainiao Network (Cainiao), the logistics arm of Alibaba Group, has announced that it will serve as the official cross-border logistics provider for Daraz, a leading e-commerce platform in South Asia. As a result, over 1,800 merchants on Daraz will enjoy full-chain logistics services provided by Cainiao. The cross-border shipping service includes local seller pick-up in China, first-mile sortation, international line-haul, digital customs clearance, sorting, and after-sales customer service, with last-mile delivery in the destination countries provided by Daraz Express and its affiliated local logistics partners in Bangladesh and Pakistan.
To safeguard cross-border shipping stability and improve the overall customer experience, Cainiao will provide air freight shipping services from China to South Asia, with 13 weekly flights from China to Pakistan and 8 weekly flights from China to Bangladesh. This is expected to result in approximately 10 per cent reduction in logistics costs and a 20 to 25 per cent improvement in delivery efficiency. Parcels will be affixed with Cainiao’s electronic shipping labels that enable merchants and consumers to track the shipping status of parcels in real-time. In addition, customers will enjoy value-added services such as cash-on-delivery for greater convenience.
Daraz merchants who also sell on other Alibaba e-commerce platforms will be able to consolidate all their parcels for shipping through Cainiao, which streamlines order fulfilment and eliminates the need for multiple logistics service arrangements and varying pickup schedules.
“As the official logistics partner of Daraz, we aim to deliver greater synergies in e-commerce logistics across the entire Alibaba ecosystem. This will facilitate the provision of a more seamless, integrated, and cost-effective logistics service for merchants who sell across multiple e-commerce platforms, thereby improving the ease of doing business globally. Together with the Daraz team, we look forward to enabling the e-commerce growth in South Asia and empowering local consumers with more e-commerce options,” Shawn Louis, General Manager – Asia Pacific, Cainiao Global Export.
Daraz CEO Bjarke Mikkelson said, “The partnership between Daraz and Cainiao will improve our efficiency and improve overall customer service in our key markets of Pakistan and Bangladesh. In addition, this will help Daraz to continue on its mission to uplift communities through the power of commerce.”
South Asian consumers are turning to online platforms to meet their day-to-day needs, with the changing consumer behaviour fueled by accelerated digital adoption amid the pandemic. At the start of 2022, internet penetration was at 36.5 per cent in Pakistan and 31.5 per cent in Bangladesh, reflecting a 35.9 and 11.6 per cent year-on-year growth, respectively. This represents a huge opportunity for e-commerce merchants as both countries boast a total internet user population of over 130 million, a figure which will only grow in time.
Furthermore, according to Deloitte, 65 per cent of consumers in Bangladesh support digital consumption. As countries in South Asia continue to strengthen their digital foundation and infrastructure across various sectors, making it more inclusive and accessible, there is immense potential for the development of the e-commerce market in the coming years.
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