FedEx ramps up its e-commerce reach in Asia

FedEx will expand its global e-commerce business in an effort to compete for the growing number of packages shipped to consumers from China and Japan, executives said Monday.

FedEx rebranding of its 2014 Bongo acquisition — a company that helps shoppers purchase goods from foreign retailers by automatically adjusting currencies, and customs and shipping costs — to FedEx CrossBorder marks an increasing trend in helping retailers with international online-shopping services.

Expanded service
Already consolidating shipments for global e-commerce retailers in the U.S., Europe, and Peru, the newly formed FedEx Crossborder will extend services to China and Japan.

Asia “is the second-largest region from an export perspective in the cross-border space, on par with Europe, and [is] growing at a faster rate,” Chip Hull, V.P. of the newly named division said.

A competitive landscape
Other companies are investing in services that aim to simplify international shipping process for merchants who can’t track varying tariffs, shipping times, and other factors when sending their products to different countries.

UPS acquired i-Parcel around the same time that FedEx bought Bongo, and Pitney Bowes acquired Borderfree last year. Deutsche Post AG’s DHL also offers international e-commerce services, and Ecommerce Bytes reported today on the intent of USPS to test a similar service called Global eCommerce Marketplace (GeM) Merchant next month.

Market opportunity
Payvision, an Amsterdam-based company that processes payments across currencies for e-commerce transactions, estimates 1/5th of all traffic to the average online retailer comes from outside the country of that retailer. Cross-border purchases accounted for around 20% of all global online trade in 2014, according to a survey of nearly 1,200 merchants, merchant service providers and payment services companies conducted last year. Payvision expects those sales to continue growing 27% a year until 2020.

Read more at WSJ

Tags: delivery, global e-commerce, FedEx, cross-border

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