Consultant Insight: SEKO Logistics officially launches its e-commerce business

The growth in e-commerce and omnichannel strategies has given way to an increase in specialized e-commerce domestic and cross-border logistics services in which speed plays a significant role. The latest entrant is SEKO Logistics who officially introduced its SEKO e-commerce business unit Jan. 17. The new business unit is led by Senior Vice President of SEKO e-commerce David Emerson who joined the company in 2003 as a partner at SEKO United Kingdom. Before starting his new global role, Emerson served as vice president of sales-EMEA and was responsible for expanding SEKO’s footprint between Europe, Asia and the Americas. [caption id="attachment_76185" align="alignright" width="298"] Cathy Roberson, Cargo Facts Consulting senior consultant and Air Cargo World columnist[/caption] Even though SEKO Logistics is only now officially launching its e-commerce business, it was actually an early provider of e-commerce logistics services, setting itself apart from other freight forwarders and 3PLs long before the COVID-19 pandemic impacted e-commerce services. Currently, e-commerce accounts for 40% of SEKO Logistics’ annual revenues, with operations more than doubling in size just in the last 12 months. “The impact of COVID has accelerated what was already happening in the global ecommerce market, in terms of rapid year-over-year growth,” James Gagne, president and chief executive officer at SEKO Logistics, said in a Jan. 17 statement. “The launch of SEKO E-commerce advances our ability to embrace this demand by bringing all our e-commerce solutions together under one leadership team. SEKO was an early adopter of ecommerce in 2011, and this next evolution enables us to see the market through one lens and to globalize what we offer.” SEKO’s e-commerce service offers clients four core solutions, including international e-commerce shipping and delivery services, which includes Section 321/Type 86 Clearances for cross-border inbound deliveries to the U.S., and specialized customs management and end-to-end solutions in the U.K., EU, Greater China, Australia and other prime international markets. SEKO’s Global E-commerce Fulfilment solution gives clients one integration with frictionless visibility into multiple global locations enabling clients to deploy fungible inventory around the world through various channels, while Global Parcel Returns & Recommerce uses SEKO’s and integrated partner, technologies, combined with SEKO facilities and ‘middle mile’ solutions to deliver an end-to-end service. Lastly, SEKO’s Heavyweight E-commerce Shipping and Last-Mile Delivery solution leverages SEKO’s asset-light Direct to Consumer White Glove delivery solutions in the U.S. for oversized deliveries, including furniture, TVs and home décor products. Jumping into e-commerce logistics, over the years freight forwarders, 3PLs, carriers and other supply chain providers have followed SEKO by introducing e-commerce logistics services in hopes of tapping into a global market estimated at more than $4.9 trillion, according to the market research firm eMarketer. That estimate is just for retail e-commerce sales, while business-to-business e-commerce is even larger, estimated at $25 to $35 trillion, according to various market research firms. DHL, FedEx and UPS are perhaps the most prevalent providers of such services. Still, an emerging group, the ocean freight powerhouses Maersk and CMA-CGM, also offer e-commerce logistics services. However, the types of e-commerce logistics capabilities will often depend on the provider. Few providers can handle all e-commerce logistics needs. While domestic e-commerce logistics has its peculiarities, international cross-border e-commerce logistics can be even trickier to maneuver. Speed is still essential, and the logistics behind an international e-commerce order are based on seamlessly connecting the seller, carrier, customs and last-mile provider. As a consumer, I still expect to receive my online order within a short period of time regardless of its origin, and of course, I want the ability to track my order from beginning to end in real-time. Lastly, the rise of Direct to Consumer (DTC) brands which took off during the early days of the pandemic as brands such as Allbirds, American Giant and Everlane sell directly to consumers through their websites, often via such e-commerce platforms as Shopify, Magento or BigCommerce. Plug and play capabilities from providers such as SEKO Logistics are often a plus, particularly for these brands, allowing them to pick the capabilities they need and quickly integrate them into their systems, so there is little or no disruption in their operations. “For a lot of brands, using integrators to move their products is the ‘easy button’ when they start out, but our model is fundamentally different,” SEKO’s Emerson said. “Integrator services are essentially built for scale, but scale is not always what clients want. They need speed, reliability, accountability, and support from a partner like SEKO which truly understands their business. “Price points are critical, too; a $12 dress doesn’t need a $25 delivery cost,” he added.

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