The logistics affiliate of Alibaba, Cainiao, is working with the United States Postal Service to help accelerate delivery speeds for merchandise ordered by U.S. consumers via the Chinese eCommerce giant’s online shopping sites.
The USPS is the biggest postal service within the United States and also boasts more than 600,000 employees. The deal is aimed at making it easier for U.S. consumers to buy (and track) goods from China.
As reported by Alizila on Wednesday (Sept. 16), there is a memorandum of understanding in place wherein Cainiao and the USPS have agreed to work on shipping solutions for cross-border eCommerce. The ultimate goal will be to help provide more efficient shipping channels to the U.S. for Chinese merchants and others who sell goods across the AliExpress globally oriented shopping network. The USPS will also help Cainiao boost its worldwide shipping capabilities, with a focus on South America.
[bctt tweet="The ultimate goal will be to help provide more efficient shipping channels to the U.S. for Chinese merchants."]
As has been widely noted, the worldwide B2C cross-border eCommerce market will grow from $230 billion last year to as much as $1 trillion in 2020, according to research by Accenture and AliResearch, Alibaba’s research firm. The company has also been working with other national mail enterprises, such as the Singapore Post and the Spanish Post.
In a statement detailing the partnership, Cainiao Vice President Wan Lin said that “as cross-border eCommerce grows rapidly, it is critical that we evolve shipping services to the next level, with shorter delivery times and easier methods to track a shipment. The collaboration between Cainiao and USPS will enable us to create new solutions and ultimately improve the overall customer experience."
Alibaba has been busy expanding beyond its own borders, with transactions coming in below expectations in China and the slowdown in consumer spending in that nation dragging on revenue growth.