Omni-channel disruptor SEKO Logistics says European retailers should start expanding their eCommerce market to the Asia Pacific region as Asia and Australasia collectively have the biggest eCommerce growth market globally.
“The U.S. is a mature market and Asia is starting to see shifts in buying behavior… There is a misconception that [the] Asia Pacific is a horrible delivery experience. That has changed in the past 18 months, and you can get in for the same price as in Europe.”SEKO Omni-Channel Logistics commercial director Justin Irvine
During The Delivery Conference in London, Mr. Irvine added that delivery to the Asia Pacific region is now cheaper compared to express delivery in most parts of Europe.
According to American Journal of Transportation, UK retailers selling online are already seeing an increase in revenue by selling outside of the UK/EU market.
Importance of Speed and Service Level
Currently, the UK eCommerce market is the third-largest in the world, with at least 46 percent of UK SMEs exporting and earning revenue overseas. It’s also reported that at least 1.8 percent of revenue growth rate is expected in cross-border trade compared to 1.2 percent for domestic-only sales.
Irvine continues that both speed and service are drivers of economic growth. Consumers nowadays shop more with companies that have higher service levels.
Shoppers are willing to pay to receive better and more efficient delivery services from merchants experienced in cross-border trade. A typical UK retailer can now deliver to Asia and Australasia in 2-3 days for less than 10 Euros.
By incorporating some graphics in their marketplace listings or on their website, sellers can highlight their cross-border trade experience.
Companies who have effectively utilized increased service levels to their advantage can expect to see a growth in revenue of at least 1.6 times faster.
However, retailers still need a partner swift enough to adapt to the changing market trends and challenges present in various countries. This is where a logistics provider such as SEKO Logistics or a courier such as DHL can help sellers that are still leery of going beyond the domestic market.
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