Damco, a global provider of freight forwarding and supply chain management service, today revealed ambitious plans to streamline cross-border e-commerce for its clients. Its immediate aim is to tackle the lack of a proven returns solution in China.
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. The Asia Pacific region is leading the way and, in China, cross border commerce has expanded by 70% year-on-year.
Return ratios for cross-border e-commerce currently run at 30-40%, a figure which is also is expected to grow. 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 solution supported by government and location authorities.
Damon Gu, Global Head of E-commerce at Damco 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.”
This approach is being developed in Nansha Free Trade Zone, Guangdong Province, to leverage Damco’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.