Pangea, the freight network identifies the requirements needed to take advantage of ecommerce opportunities
London, December 2014 – Ecommerce has become a major driving force for the freight forwarding sector, as has been demonstrated by the record number of online sales on the last Singles’ Day in China (also known as the Double 11 or 11/11). This special celebration, a kind of anti-valentine’s day, when Chinese consumers buy gifts for themselves, allowed the Chinese ecommerce giant, Alibaba to achieve records sales results, amounting to $9,000m in sales in 24 hours.
However the success of this sales campaign was tarnished by several shortfalls, which are also witnessed at peak times for ecommerce activity such as Christmas in Europe and Black Friday in the United States:
- Longer delivery times due to the saturation of logistics and transport infrastructures when there is a peak in online sales
- Packages lost or damaged, which for Alibaba affected 16% of deliveries on Singles’ Day according to the Chinese authorities
- Delays and poor customer service, caused by a combination of the above factors and the lack of transport networks in China
- Slowness, inefficiency and the high cost of returns caused by poor development of inverse logistics (this also happens in Europe & the USA).
How can freight forwarding companies take advantage of these celebrations that trigger online sales? Some keys are:
- Have a strong international presence that can cater for the global need of ecommerce companies.
- Offer an authentic global door to door (on the 11/11, Chinese consumers could buy online in seven countries).
- Project a strong global brand image, which is essential when doing business with leading ecommerce companies.
- Have a technology platform to track shipments in real time and provide customers with a good service.
- Have an online banking service that allows for transferring money in real time and changing currencies without paying high commissions.
Sarah Bidmead, Network Manager at Pangea Logistics Network, says: “Being part of a global network of independent freight forwarders allows small and medium sized transport and logistics companies to compete with global operators via strong branding, cooperation with similar companies around the globe and the best quality service that differentiates the local company from a multinational. For example, they can take advantage of ecommerce business opportunities wherever they arise.”
About Pangea Logistics Network
Based in London, Pangea Logistics Network is an International Freight Network of First Class independent Freight Forwarders with over 380 local offices in over 90 countries. Our aim is to promote collaboration between Member Companies in order to gain competitiveness on the present market. We handle 1,5 million shipments every year for 60,000 potential customers, making a total annual turnover of 2 billion USD. Member of Fiata and Bifa.