China’s Alibaba and USPS sign deal to increase cross-border logistics services


library_logos_alibabaev_largeCainiao, the logistics affiliate of Alibaba Group Holding Limited, and the United States Postal Service (USPS) today signed a Memorandum of Understanding (MoU) to develop new international shipping solutions and enhance the logistics-service experience for both sellers and buyers involved in cross-border e-commerce. Through the MOU, Cainiao and the USPS agreed to work together to speed delivery of merchandise sold through AliExpress to consumers in the United States. The USPS will also collaborate with Cainiao to help expand the latter’s delivery networks worldwide, especially in South America.

In cross-border e-commerce, online shoppers purchase goods directly from overseas merchants and manufacturers who ship their orders directly to consumers’ homes. The global B2C cross-border e-commerce market is expected to grow from $230 billion in 2014 to $1 trillion in 2020, according to a report from global consulting firm Accenture and AliResearch, Alibaba Group’s research arm. The collaboration between Cainiao and the USPS seeks to capitalize on growing opportunities in cross-border e-commerce between China and America by making it easier and more efficient for Chinese companies to sell and deliver goods directly to U.S. consumers.

“We are excited to work with USPS to deliver innovative shipping solutions that will benefit our U.S. consumers. Today’s announcement is a key part of Alibaba’s globalization strategy and our vision to enable consumers around the world to enjoy the convenience and benefits of e-commerce,” said Wan Lin, Vice President of Cainiao.

“As cross-broader e-commerce 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,” added Wan Lin.

USPS is the leading postal and shipping service provider in the United States. The country’s national mail carrier, the USPS has more than 600,000 employees and delivered more than 155 billion pieces of mail in 2014, generating nearly $68 billion in revenue.

Cainiao and the USPS are aiming to develop an integrated e-commerce solution that provides full access to the U.S. domestic market and neighboring countries, the MOU states. The solution will be designed to reflect the demands of customers and the capabilities of shipping partners to improve the way goods purchased from China are processed, handled, and delivered in the United States and potentially South American markets.

Both companies have expressed an interest in exploring the feasibility of integrating USPS technology into the Cainiao logistics information platform, as well as other Alibaba’s e-commerce platforms. Through the collaboration, Cainiao and USPS aim to innovate special services to meet market demand, supporting efforts by China-based merchants to expand into overseas markets, at the same time delivering an improved shopping experience to U.S. consumers.

The collaboration is a key component of Alibaba’s globalization strategy and ambition to provide high quality e-commerce services to consumers across the globe. Cainiao will leverage the unique geographical advantages of USPS’s services as well as its own intelligent network in order to expand its footprint in South America and beyond. To foster the development of cross-border e-commerce by reducing delivery times for international parcel shipments, Alibaba Group and its affiliates are working with other national mail carriers including Singapore Post and Spanish Post.

About Cainiao

Cainiao (formerly known as China Smart Logistics), the logistics affiliate of Alibaba Group Holding Limited, is dedicated to meeting the current and future logistics demands of China’s online and mobile commerce sector. It operates a logistics information platform which provides real-time access to information for both buyers and sellers, as well as information that allows delivery service providers to improve the efficiency and effectiveness of their services. Cainiao is an affiliate of Alibaba Group.

  • Poor Richard

    Smart thinking, USPS management. You’re already bleeding millions of dollars a year by subsidizing China to USA shipments at a rate that’s cheaper than sending a domestic package to your next-door-neighbor here in the USA.

    For USA merchants that were making a meager profit from goods they imported from China for resale, they can kiss their businesses goodbye. No way they can compete now.

    eBay and Amazon may as well shut down also because their sites are full of Chinese sellers who won’t need them anymore.They’ll use Alibaba. Factories in China can sell direct to USA customers now. As long as they have cheap and reliable shipping, it will work.

    Yep, USPS management. Thanks for helping to open the floodgates of cheap Chinese goods into the USA via Alibaba and the USPS. There’s no way the Chinese and Alibaba could have pulled this off without your help.

    USA customers will get all of China’s junk items that won’t last a week with absolutely no warranty or replacement. Returns? It will cost more in postage to return the item back to China than the customer paid for it. Even Walmart takes better care of customers than that.

    On the other hand, it might be an OK deal in some respects. You see, China doesn’t give 2 hoots about patents and copyrights here in the USA. You’ll be able to get a good bootleg copy of an IPod, IPhone, IPad, other cell phones and electronics, copies of Louis Vuitton, Prada, counterfeit drugs, etc at a mere fraction of the name-brand price with free shipping!

    Here’s where Alibaba and China gets to kick the sh*t out of those USA corporations
    who sent all their manufacturing to China at a cost of millions of lost USA jobs so they could improve their “bottom line.” If their “USA Patented” items are being manufactured in China, the Chinese will copy and sell them. All they needed was a delivery system.

    Best of all, these counterfeit goods should fly through customs with no problem with zero import fees (lost USA tariffs).

    Finally, to meet all of this demand, the Chinese will have to put more of their children to work in their 3rd-world sweatshops to keep up. USA jobs? Who cares anymore? As long as we can get all our stuff cheap from China, let’s all get on welfare.

    I agree with Donald Trump when he says, “The leaders of China and Mexico are too smart for our leaders.” The USA never gets a good deal anymore.