Consultant’s Insight: Marketplaces expand cross-border e-commerce services

Chinese e-commerce providers, logistics providers and carriers are expanding further into Europe. For example, Cainiao Network , the logistics arm of Alibaba Group Holding Ltd. , recently expanded its last-mile delivery network in Spain, offering next-day delivery in nine major cities, including Madrid and Barcelona, and two-day delivery service in more than 20 other Spanish cities. [caption id="attachment_76185" align="alignright" width="298"] Cathy Roberson, Cargo Facts Consulting senior consultant and Air Cargo Next columnist[/caption] Earlier this year, DHL eCommerce acquired part of the equity securities of Cainiao’s subsidiary in Poland as the companies look to partner on investments. To start, the partners will merge their parcel locker networks in the country, which amounts to 1,200 parcel lockers. They will then make a 60 million euro ($63.5 million) investment in expanding the locker network. Meanwhile, SF Airlines , a subsidiary of SF Express , launched a new air cargo route linking Ezhou, Hubei province, China, with Frankfurt, Germany, in July. And Alibaba subsidiary AliExpress has chartered nine flights per week to Spain. Interest in Europe According to the E.U. retail business accelerator Cross-Border Commerce Europe , most third-party e-commerce sellers originate from China, with 59% of Amazon ’s third-party sellers based there. At the same time, the figure stands at 90% for AliExpress and 82% for e-commerce platform Wish . In 2022, the total online cross-border market in Europe generated revenue of $280 billion. At least 63%, $176.4 billion, was generated by marketplaces. According to a Cross-Border Commerce Europe analysis, marketplaces have grown 9.3% after the pandemic and are expected to generate 65% of cross-border online sales in Europe by 2025. As some marketplaces grow their cross-border e-commerce capabilities, others struggle to do so. “Our cross-border business continued to face headwinds, as two of our largest clients changed how they access our offerings,” Pitney Bowes Chief Executive Marc Lautenbach told analysts in August. The two clients Lautenbach referenced are likely eBay and the U.S. Postal S ervice (USPS) . eBay could have expanded the number of cross-border e-commerce logistics partners, thus lessening its dependence on Pitney Bowes, a Stamford, Conn.-based technology and logistics firm. At the same time, USPS may have increased its cooperation with either FedEx or UPS for international transportation. Both companies have been busy expanding their cross-border e-commerce logistics services. FedEx International Connect Plus was introduced in 2021 and the company describes the service as an “international, day-definite, e-commerce shipping service that combines competitive speed with attractive prices.” Meanwhile, UPS has expanded its Digital Access Program to Europe. As cross-border e-commerce normalizes from pandemic highs, it will continue to grow. According to research firm Juniper Research , the value of cross-border e-commerce will exceed $3.3 trillion in 2028, up from $1.6 trillion in 2023. Editor’s note: All amounts have been converted to U.S. dollars.

Consultant’s Insight: Marketplaces expand cross-border e-commerce services

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