Damco has today revealed plans to streamline cross-border e-commerce for its clients and its first target is to tackle the lack of a proven returns services in China.
This approach is being developed in Nansha Free Trade Zone, Guangdong Province, to leverage the freight forwarder’s strong relationships in the region and further support the Greater Bay Area initiative.
Additionally, it builds on the investment made by Damco’s sister company, APM Terminals, in developing Nansha Port and its port terminal operations.
Damco said domestic e-commerce sales rates are expected to flatten in the coming years, while the cross-border segment of the market is set to continue its rapid growth. Asia Pacific is leading the way and, in China, cross-border commerce has expanded by 70 per cent year-on-year.
Return ratios for cross-border e-commerce currently run at 30-40 per cent, a figure which is also forecasted to grow in the future.
However, cross-border returns are often expensive. Damco’s latest initiative aims to address this point by offering its customers a robust, fully-digital returns service supported by government and location authorities.
Damco global head of e-commerce, Damon Gu said: “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.”