Damco has unveiled ambitious plans to streamline cross-border e-commerce for its clients, focusing particularly on the lack of services to return items in China.
The freight forwarding and supply chain management company says that domestic e-commerce sales rates are expected to flatten in the coming years, while the cross border segment is set to grow rapidly.
It cites the Asia Pacific region as leading the way, with growth in China expanding by 70 per cent year on year.
Return ratios for cross-border e-commerce run at about 30 – 40 per cent, but they are often expensive, and Damco’s latest initiative aims to address this point by offering customers a robust, fully digital returns solution supported by government and location authorities.
Damco global head of e-commerce, Damon Gu says: “In global e-commerce, speed and visibility are essential. Our goal is to connect and simplify our clients’ supply chains. That means offering the fastest route to government approval, speeding up the process and reducing costs. Furthermore, new digital platforms will deliver complete supply chain visibility and product traceability.”
The approach is being developed in Nansha Free Trade Zone in Guangdong Province, to leverage Damco’s relationships in the region and further support the Greater Bay Area initiative.
It builds on the investment made by Damco’s sister company, APM Terminals, in developing Nansha Port and its port terminal operations.