Cainiao, Alibaba Group’s logistics affiliate, has agreed to work with the US Postal Service to speed delivery of merchandise ordered by US consumers on Alibaba’s international online shopping platforms.
Under a Memorandum of Understanding (MoU), Cainiao and the US’s national mail carrier agreed to collaborate on the development of enhanced shipping solutions for cross-border eCommerce. In addition to helping provide more efficient shipping channels into the US for Chinese merchants and manufacturers selling on Alibaba’s AliExpress global-shopping website, the USPS will also work with Cainiao to expand its worldwide shipping capabilities, especially in South America, according to a press release.
The global B2C cross-border eCommerce market is expected to grow from $230 billion in 2014 to $1 trillion in 2020, according to a report from global consulting firm Accenture and AliResearch, Alibaba Group’s research arm. To reduce barriers to shipping small parcels quickly on a global scale, Alibaba and related companies have been working with several national mail carriers including Singapore Post and Spanish Post.
Cainiao VP Wan Lin cited the agreement with the USPS as “a key part of Alibaba’s globalisation strategy and our vision to enable consumers around the world to enjoy the convenience and benefits of e-commerce”.
With more than 600,000 employees, the USPS is the leading postal and shipping service provider in the US, the world’s biggest consumer market.
Cainiao and the USPS said by working together they are aiming to make it easier and more efficient for Chinese companies to sell and deliver goods directly to the homes of US consumers by improving the way goods purchased from China are processed and handled during international shipping.
“As cross-border eCommerce grows rapidly, it is critical that we evolve shipping services to the next level, with shorter delivery times and easier methods to track a shipment,” said Wan in a statement.
“The collaboration between Cainiao and USPS will enable us to create new solutions and ultimately improve the overall customer experience.”
- Original reporting by Alizila.com, the independent news service about Alibaba Group, (funded by Alibaba).