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Japan Post teams with SingPost on cross-border e-commerce fulfillment

Wednesday, December 12th, 2012

Japan Post and Singapore Post have formed an alliance to provide a new fulfillment service for Japanese e-commerce companies selling overseas.

The new service, called Ezy-Fulfilment For E-Commerce Trader (EFFECT), will be run by SingPost’s Quantium Solutions Japan subsidiary, promising “comprehensive shipping support” for merchants selling cross-border.

It will include everything from inventory control and inspection to picking and packing, export documentation, shipping and final delivery.

The firms said the service would combine Quantium’s warehousing control and shipping system with the online shipping service offered by Japan Post.

“Because the EFFECT service will provide one-stop logistics, e-commerce traders can simplify the process from stock control to delivery,” Japan Post told Post&Parcel today.

“The service can handle small-sized transactions, which will be particularly helpful for small and medium-sized e-commerce traders that plan to expand their e-commerce activities overseas, because it will reduce outsourcing costs.”

Service

The new service will see e-commerce merchants handing their merchandise to Quantium Solutions at its warehouse in Tokai, in Tokyo’s Ōta ward.

Quantium will then carry out a stock inspection before storing merchandise in a secure warehouse. Storage fees are based on volume and the number of days storage space is needed.

Once a shipping instruction is then received from merchants, Quantium will then pick and pack products, preparing shipments and export documents along with delivery labels for Japan Post’s Express Mail Service (EMS) or the international e-packet service.

Japan Post will then deliver the merchandise anywhere in the world through the international mail network.

Quantium Solutions, which became wholly owned by SingPost back in 2009, is planning to run a series of seminars for merchants, in partnership with Japan Post. The seminars will help merchants looking to expand sales overseas, detailing delivery methods and logistics support services available as well as information about overseas sales, value added services and returns.

Japan Post said it is currently planning on expanding and streamlining its ecommerce delivery services, working with various partners.

Market

Japan’s outbound international ecommerce market has seen revenues growing by more than 20% a year in the last few years, valued at around $1.6bn USD in 2009, of which about $275m was claimed by Japan Post’s Express Mail Service, about 13% of total EMS revenue.

China and the United States are the two biggest foreign markets for Japanese ecommerce merchants, with some of the most popular products currently toys, office supplies, sports products and motorcycle products.

Japan Post claims a 49% share (2009) of the international outbound ecommerce market, with DHL on 22%, FedEx 13%, UPS 7% and TNT 4%.

Source: Post&Parcel/Japan Post

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