Damco to launch returns service for Asia-Pacific e-commerce

While the continued growth in e-commerce demand that surrounds Chinese giants like Alibaba and JD.com may evoke dollar signs in the eyes of interested parties, there is one major caveat associated with the industry: the rate of returns demanded by customers.

In response, international freight forwarder Damco revealed plans today to offer a service that streamlines the complex process of moving cargo in both directions across international lines in various jurisdictions, catering specifically to its clients in the Asia-Pacific e-commerce realm.

Damco estimates the returns figure to be as high as 30 to 40 percent of the e-commerce traffic it handles, which manifests in a headache of logistical planning and costs for members throughout the supply chain.

The Netherlands-based 3PL joins other companies in offering a digital solution to this issue. UPS released a platform for e-commerce merchants to customize return shipment policies in anticipation of the most recent holiday season.

The specifics features of the service are unclear at this stage of the game, but global head of e-commerce at Damco, Damon Gu, said it will “deliver complete supply-chain visibility and product traceability,” and will be backed by Chinese government authorities in the Nansha Free Trade Zone in Guangdong Province.