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DHL Report Predicts Cross-border e-Commerce to Grow 25% by 2020

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DHL Express, the world’s leading international express services provider, has published research highlighting the significant growth opportunity for retailers and manufacturers with an international online product offering.

The report – The 21st Century Spice Trade: A Guide to the Cross-Border E-Commerce Opportunity – looks in detail at the markets and products that offer the highest growth potential, the motivations and preferences of customers making international online purchases and the success factors for online retailers that wish to expand overseas.

It focuses in particular on the opportunity for premium products and service offerings, with higher basket values accounting for a significantly higher proportion of orders in cross-border transactions.

The report reveals that cross-border e-commerce offers aggregate growth rates not available in most other retail markets: cross-border retail volumes are predicted to increase at an annual average rate of 25% between 2015 and 2020 (from USD 300 Billion to USD 900 Billion) – twice the pace of domestic e-commerce growth. Online retailers are also boosting sales by 10-15% on average simply by extending their offering to international customers.

An additional boost comes from including a premium service offering: retailers and manufacturers that incorporated a faster shipping option into their online stores grew 1.6 times faster on average than other players.

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“Shipping cross-border is much, much easier than many retailers believe, and we see every day the positive impact that selling to international markets can have on our customers’ business growth,” said Ken Allen, CEO, DHL Express. “We also see that virtually every product category has the potential to upgrade to premium, both by developing higher quality luxury editions and by offering superior levels of service quality to meet the demands of less price-sensitive customers. The opportunity to ‘go global’ and ‘go premium’ is there for many retailers in all markets. Our global door-to-door time definite network is perfectly positioned to support any retailer that is developing a premium service offering or simply looking for a way of reaching new overseas markets directly without investing resources in warehousing or distribution.”

The report is based primarily on research and in-depth interviews conducted by a leading global management consultancy, as well as more than 1,800 responses to a proprietary exporter survey of retailers and manufacturers in six countries.

It casts a light on the evolving face of e-commerce, with both supply and demand becoming more sophisticated Manufacturers are increasingly taking advantage of e-commerce to move to direct retail models – bypassing the ‘middleman’ and offering their products online to the end customer – and expect to grow 30% faster in cross-border e-commerce than other retailer groups.

Customers in many markets are also becoming more discerning, citing product availability and trust, as well as attractive offers, as the motivating factors for shopping with overseas online retailers.

The main challenges highlighted by consumers to cross-border purchases relate to logistics, trust, price and customer experience. At the same time, online retailers can take a number of relatively easy steps to identify, cultivate and service demand from abroad.

The report noted that the e-commerce trend has given birth to a new eco-system of facilitators and off-the-shelf solutions (such as payment providers and programs that localize a website’s check-out experience for the visitor), helping retailers to adapt their offering to the digital world and to transact with customers in foreign markets.

Global logistics partners can provide support in identifying the right trade-off between centralized and local warehousing and fulfillment, while fast, reliable and flexible delivery options can be an important tool in turning speculative interest into long-term customer loyalty.

 

 

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Logistics

Aramex Launches ‘Shop & Ship’, Takes Delivery From Global Retailers

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By peter oluka

Aramex, the disruptive leader in the global logistics and transportation industry, has introduced its easy-access online shopping and shipping delivery service, Shop & Ship (S&S) in Nigeria.

The Company boosts that online shoppers can now order from popular global stores such as Amazon who do not deliver directly to Nigeria.

Shop & Ship (S&S) is an international shipping solution that enables members to shop from online merchants in 23 countries across the world.

Commenting on the new service, Faisal Jarmakani, managing director of Aramex Nigeria, said: “We are committed to serving the needs of the Nigerian market and constantly looking for ways to make online shopping affordable and stress-free.With Shop & Ship, we have addressed the two critical concerns of online shoppers – restriction and speed.”

“Processing and onward delivery are concluded within 3-6 working days while the restrictions from global online stores, which have made direct delivery difficult, have been eliminated with the provision of 23 addresses across the world where shipments can be delivered for onward transfer to members in Nigeria,” added Faisal.

Available in over 80 destinations globally, the S&S service enables members to purchase and ship goods from desired countries spanning across locations in the USA, UK, Australia, Canada, China, Egypt, France, Georgia, Germany, Hong Kong, India, Italy, Japan, Jordan, Lebanon, Malaysia, Singapore, South Africa, South Korea, Spain, Thailand, Turkey and United Arab Emirates, which are some of the most popular shopping destinations in the world.

With this service, Aramex hopes to further its mission to use technology driven solutions to grow and develop Nigeria’s multi-billion e-commerce industry.

Jarmakani further spoke on the footprint so far since Aramex’s relaunch in Nigeria in 2016.

“Aramex is a global leader in shipping. We are one of the leading global providers of ecommerce, logistics and transportation solutions, with presence in 60 countries.

“Nigeria remains an important market for us. As we journey towards the Digital Economy, we will see a surge in ecommerce activities. Aramex is here to facilitate these transactions, aid international trade and boost the economy.

Speaking on how the service meets the specific needs of Nigerians, the MD said that Shop & Ship makes it easy to shop from global stores like Amazon, Boohoo, Macys etc. right here in Nigeria.

“It takes away the restriction and limitation of online shopping from foreign stores. The service also saves shoppers time as shipments are delivered between 3-6 working days. S&S addresses these two critical concerns of online shoppers in Nigeria – restriction and speed”, he added.

How Does The Service Work?
“The service is easy to use in just one step – register for a Shop & Ship lifetime membership on our website. Once registered, you get 23 personalized physical addresses in Ontario, Shanghai, Cairo, Paris, Tbilisi, Frankfurt, Hong Kong, Mumbai, Milan, Tokyo, Amman, Beirut, Malaysia, Singapore, Johannesburg, Seoul, Barcelona, Bangkok, Istanbul, Dubai, London, Sydney and New York.

“You can use these addresses to shop from Canada, China, Egypt, France, Georgia, Germany, Hong Kong, India, Italy, Japan, Jordan, Lebanon, Malaysia, Singapore, South Africa, South Korea, Spain, Thailand, Turkey, United Arab Emirates, UK, Australia and USA and we’ll deliver them to where you live at reasonable shipping rates”.

Of course, despite the growing appeal of ecommerce, it is still at the rudimentary stage in Nigeria as the pace of adoption and acceptance is decidedly slow, Jarmakani spoke on how this can be remedied: “Some of the limitations to ecommerce growth are high cost of shipping goods to and from Nigeria, low penetration of credit cards usually required to shop online (debit cards are the common payment cards available in Nigeria), unreliable distribution and delivery processes, etc. Removing or reducing these impediments will spur ecommerce in Nigeria.

“This is what we have set out to accomplish here at Aramex, with our Shop & Ship service. We are here to ease the shipping of goods into Nigeria and provide our clients with world class distribution and delivery process at very reasonable cost”.

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Logistics

Aero Contractors gets NCAA Approval for C-check Maintenance

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Nigeria’s oldest airline, Aero Contractors, has received certification from the Nigerian Civil Aviation Authority (NCAA) to handle C-checks on Boeing B737-300, B737-400 and B737-500.

Capt. Ado Sanusi, Managing Director of Aero Contractors, made this known while briefing newsmen on yesterday in Lagos.

Sanusi said the NCAA approval that takes effect from Sept. 2 was given to the Aero Contractors’ Aircraft Maintenance Organisation (AMO) at the Murtala Muhammed Airport, Lagos.

”This represents for us a significant achievement and is a major instrument for our turn-around efforts. This feat has benefits far beyond Aero Contractors.

”The fact that C-check on the B737 Classic can now be performed in Nigeria by Aero Contractors will reflect directly in significant drop in maintenance cost for airlines in Nigeria and the sub-region as well as reduction in downtime for such checks.”

Explaining further, he said that a normal C-check cost between $1.8 million to $2 million outside the country, adding that performing it in Nigeria would reduce the demand for foreign exchange as airlines could now pay in Naira.

“So, it is a very positive development for Nigerian airlines and the Nigerian aviation industry because it will improve the ease of doing business,” Sanusi added.

He disclosed that the airline spent N60 million to renovate and expand the MRO facility which had been in existence for over 50 years in order to meet the required local and international standards.

According to him, the airline has also signed Memorandum of Understanding (MoU) with international partners, including the maintenance unit of Ethiopian Airlines and South African Technik, to render assistance on the C-checks. Sanusi said that domestic airlines alone operate about 22 B737 Classics, stressing that the facility would have a viable market.

“We want to appeal to the Federal Government to give us the Free Trade Zone status. “We want to have free access to import tools and aircraft spares without hindrances from Customs when our demand increases,” he said.

The Aero boss commended the NCAA for its professionalism and encouragement during the certification process.

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Construction: FAAN Advises Passengers on How to Meet Up with Flights

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The Federal Airports Authority of Nigeria (FAAN) has notified passengers and other airport users that the Lagos State Government has commenced the reconstruction of the Murtala Muhammed Airport Road, Lagos

The project which would last for 15 months is aimed at expanding the road for better service to users.

Appealing for understanding from all while the project last, Yakubu Henrietta, general manager, Corporate Affairs at FAAN, urged passengers and other airport users plying the road to always leave their homes earlier than usual, so as to be able to get to the airport in good time and also avoid missing their flights.

Specifically, the design of the project includes the reconstruction and expansion of the existing carriage to three-lane Expressway on both directions, construction of two-lane Service Road in both directions, construction of Ramp Bridge to provide a U-turn from Ajao Estate to Airport, construction of a flyover at NAHCO/Toll Gate and drainage works.

Others include the removal of existing Pedestrian Bridge at Ajao Estate and construction of Pedestrian Bridges at Ajao Estate and NAHCO/Hajj Camp, construction of Slip Road to provide access to Ajao Estate, construction of Lay-bys and installation of Street Lights, among others.

“Meanwhile, security agencies and other traffic officers have been mobilized to ensure that road users and passengers have relatively hitch free passage while the road is under construction.

“The Authority, in conjunction with the Lagos State Government, has put in place necessary measures to mitigate the effect of the construction on the road users while the project last”, she said.

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