Who will address e‑commerce concerns in the cross‑border logistics industry?

Release date:

2020-09-06

Author:

Jinhua Logistics

Cross-border e‑commerce has transformed consumers and businesses worldwide. It is evident not only in the convenience it offers Chinese mothers to purchase Australian infant formula, or in the expanded network of global trading partners for Chinese manufacturers, but more importantly, it is reshaping how goods move across borders—and, by extension, redefining the cross-border logistics industry.

This transformation is significant because the rise of cross-border e‑commerce has imposed new expectations on logistics service providers—both consumers and businesses alike—who now demand that the logistics industry align with the cross-border e‑commerce landscape: faster, more precise, and more efficient.

This has left the global logistics industry anxious. Customers, seemingly “spoiled” by the rise of e‑commerce, are increasingly demanding that deliveries be faster and faster, flooding carriers with calls. They keep raising new requests: “I want to know where my shipment is right now,” and “I’d like to boost my supply chain’s efficiency even further, since I’m running a promotional campaign on an e‑commerce platform.”

These new demands have caused anxiety in the cross-border logistics industry to spread like a virus—among truck drivers and stevedores, freight forwarders and port managers, warehouse workers and shipping company owners alike. Everyone is wondering who will step up to address this “anxiety”—DHL, UPS, or FedEx?

However, various signs suggest that the entity capable of alleviating e‑commerce players’ anxieties in the cross‑border logistics sector may not be the traditional logistics industry, but rather the e‑commerce sector itself—companies like Amazon.

In recent years, Amazon has been strengthening the role of its delivery centers around the globe, a move that may signal the e‑commerce pioneer’s formal entry into the traditional logistics and transportation sector—long dominated by companies such as UPS, FedEx, and DHL.

One of the reasons e‑commerce companies are expanding into cross‑border logistics is their extensive, self‑built logistics networks. According to data from ChannelAdvisor, a U.S.-based provider of multi‑channel cloud‑based e‑commerce solutions, Amazon has added 21 new fulfillment centers worldwide over the past 12 months, a year‑over‑year increase of 14%, bringing its total number of global fulfillment centers to 173.

A dense logistics network has dramatically accelerated Amazon’s cross-border delivery times. According to reports, Amazon’s current average delivery window for international purchases is just 6–8 days, with some shipments arriving in as few as three business days; on the export side, deliveries can be completed in an average of five days. By contrast, the traditional logistics industry typically takes around 15 days for cross‑border shipments—hardly any faster than before the rise of cross‑border e‑commerce, and not much quicker even than the postal book‑order service of the last century: as documented in the American writer’s epistolary collection “84 Charing Cross Road,” postwar book‑order deliveries between Britain and the United States took roughly 20 days.

Another factor that could enable e‑commerce giants like Amazon to transform the traditional cross‑border logistics industry is technological innovation.

From Jeff Bezos’s garage two decades ago to today’s robotic warehouses and helicopter‑based delivery, Amazon has pioneered a comprehensive e‑commerce warehousing and logistics model underpinned by cutting‑edge technology.

Amazon has pioneered the use of big data and cloud technologies in warehouse and logistics management. It has innovatively introduced services such as predictive replenishment, cross‑regional delivery, and international shipping, continually delivering new experiences and delightful surprises to its customers.

Leveraging big data, Amazon can ensure that its warehouse and other logistics infrastructure continue to function smoothly—even during peak periods like the upcoming “Double 11” shopping festival—provided that thorough advance planning is in place.

This year’s “Double 11” shopping festival has seen major e‑commerce players aggressively promoting their overseas‑shopping strategies, presenting a major test for cross‑border logistics. Whether it’s JD Logistics or Alibaba’s Cainiao Network, their international expansion remains underdeveloped, with cross‑border logistics largely relying on partnerships, while Amazon’s logistics network has long been established worldwide.

Related information: Business scope: general cargo transportation, heavy‑weight cargo transportation, domestic land freight forwarding, warehousing services, air freight forwarding, international freight forwarding, customs clearance and inspection agency services, supply chain management, vehicle affiliation, vehicle insurance processing, and other comprehensive logistics services.

Technological innovation is driving transformation in modern logistics and transportation.

The era of rapid logistics growth has passed; a restructuring of business models is now required.

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