FedEx has made the decision to not renew the FedEx Express U.S. domestic contract with Amazon as the company wishes to focus on serving the broader e-commerce market. In an announcement FedEx stated that this decision does not impact any existing contracts between Amazon and other FedEx business units or relating to international services. Amazon is not FedEx’s largest customer. The percentage of total FedEx revenue attributable to Amazon represented less than 1.3 percent of total FedEx revenue for the 12-month period ended December 31, 2018. “There is significant demand and opportunity for growth in e-commerce which is expected to grow from 50 million to 100 million packages a day in the U.S. by 2026. FedEx has already built out the network and capacity to serve thousands of retailers in the e-commerce space. We are excited about the future of e-commerce and our role as a leader in it,” FedEx declared.
The Quick Group has entered into an agreement to be acquired by Kuehne + Nagel, a global logistics company operating in airfreight, seafreight, contract logistics, and overland businesses. Quick will continue to offer tailor-made solutions to all the industries they serve and will operate as independent specialised product brands: Sterling Aviation, QuickSTAT, Quick Healthcare, and Quick Logistics. The Quick/Sterling team, including management, will continue to support their client base. Unitrans International Logistics will not be part of this transaction. The partnership will offer Quick’s customers additional service and resource capabilities, with an expanded global footprint within Kuehne + Nagel’s operating network across more than 100 countries. “We are very excited to become part of the Kuehne + Nagel Group and further expand the services we provide to our customers, with a clear focus on providing integrated logistics solutions with speed, control, communication, and IT efficiencies. We plan to continue leading the industry, providing the very best specialized solutions,” Dominique Bischoff-Brown, CEO, The Quick Group of Companies said. The closing of the transaction is subject to the satisfaction of customary conditions. Read more:
SEKO Logistics is partnering with ShipStation to increase its eCommerce merchants’ ability to grow in new cross-border markets. ShipStation helps eCommerce retailers import, organise, process and ship their orders quickly and easily from any web browser. “We’re excited by the opportunity to partner with ShipStation and to be combining our respective strengths to open up new markets for dynamic and ambitious merchants, especially those exporting from our major markets in the United Kingdom, United States and Australia. SEKO’s reputation for cross-border eCommerce solutions means we are also a first port of call for smaller shippers that want to expand globally. We will now be able to migrate those companies to ShipStation and they can just ‘flip a switch’ to use our cross-border eCommerce solutions because ShipStation is integrated with so many eCommerce platforms,” Brian Bourke, SEKO Logistics’ VP of Marketing, said. Merchants can now connect to SEKO Logistics via ShipStation and see:
Reduced transit time and lower cost to international markets for faster expansion
Reduced cart abandonment rates internationally with lower shipping costs
An easy and monetized returns solution with international in-country return capabilities
Unified tracking internationally regardless of final mile postal carrier
More Australians are shopping online than ever, with total purchases topping $21 billion for the first time, according to new research from Australia Post. Australia Post has released its annual Inside Australian Online Shopping Report, an overview of Australia’s e-commerce market that identifies who is buying what and where online. The report showed that Australians spent $21.3 billion in 2017, an 18.7 per cent increase compared with 2016. Local retailers accounted for more than 80 per cent of the total spending. Australia Post general manager for parcels & express services Ben Franzi said Australians shopped online to access greater value, choice and convenience, and a clear example of this was the rise of online market places. “Marketplaces such as Amazon, eBay and Etsy are booming, growing 74.8 per cent in the past year alone,” Mr Franzi said. “Australians really appreciate the convenience of being able to access goods from a variety of sellers in the one location. “In the past year we have seen new marketplace entrants, which is always great to see, in recognising the increased customer traffic that this type of format offers.” Mr Franzi said marketplaces were also helping Australian retailers access the lucrative international market, the total online spending of which has increased 46.7 per cent to $US1.57 trillion ($A2.08 trillion) in the past two years. “Marketplaces make it easier for consumers in our key export markets, such as China, United States and India, to find Australian products and offer a more convenient way for local businesses to start selling overseas. “By 2019, total online goods purchases from across the globe are set to reach $US2.16 trillion ($A2.86 trillion), so this market represents a huge opportunity for Australian retailers.” Fashion, health supplements and other wellbeing products, and cosmetics are among Australia’s most popular online exports. Domestically, fashion continues to be the top selling category, increasing 27.2 per cent in the past year. Health and beauty products are also popular, growing 13.2 per cent, while homewares and appliances recorded 10.9 per cent growth. The May/June period posted the strongest growth during 2017, with online purchases increasing 32.2 per cent. Mr Franzi attributed the increase to retailers offering end of financial year sales for longer, in some cases more than six weeks. The November/December period remained the busiest time of the year in terms of volume as people looked to buy Christmas presents online. Point Cook in Victoria remained Australia’s number one online buying location in 2017, recording 22.6 per cent growth. Toowoomba was the second biggest buying location, growing at 19.5 per cent, while Liverpool was the third biggest, growing 21.1 per cent. Top 10 online shopping buying locations and % growth
Point Cook, +22.6%
Hoppers Crossing, +31.7%
2017 calendar year compared with 2016 calendar year.
Australian e-commerce fulfilment company eStore Logistics has committed to a 12,515sqm warehouse in LOGOS Property’s Marsden Park in New South Wales. The company’s current clients include Kogan.com, Temple and Webster, Hairhouse Warehouse, Patagonia, Dick Smith and Essendon Football Club. “This expansion highlights our rapid growth, driven by our market leading proprietary IT and omnichannel fulfilment service and solutions,” said Leigh Williams, Managing Director, eStore Logistics. “Our new facility in Marsden Park will feature world-leading logistics systems that support robust e-commerce fulfilment processes. We have complex algorithms which minimise manual handling and human decision making while maximising accuracy. We’re excited to be expanding our business and making our services available to more online retailers and enabling them to get orders to their customers super-fast at low cost.” Supply chain consultancy TM Insight carried out design work for the facility. “We partnered with eStore Logistics to design a facility that maximised storage density, but also allowed for approximately 30 per cent of the warehouse footprint to be allocated for product staging and returns,” said Travis Erridge, Director, TM Insight. “It is pivotal that sufficient footprint is designated to product staging and returns, as it is an inherent challenge in the e-commerce landscape. “Despite the allowance for a significant percentage of floor area being allocated to product staging and returns, the TM Insight design enabled eStore Logistics to achieve 1.5 pallets per square metre of floor area, well above the ratio that most 3PLs (third-party logistics operators) adopt in their operations.” The facility will be operational in November 2018 and will have an end value of approximately $25 million.
The 2017 Tmall Global Annual Consumers Report has revealed Australia has moved into third spot, on the list of importer countries into China, on Alibaba’s business-to-consumer (B2C) platform. This is up from fourth spot in 2016. Led by strong demand from Chinese consumers for Australia’s health and nutrition supplements, baby products and milk powder, Australia ranked behind only Japan and the United States, and ahead of Germany and South Korea. Managing Director of Alibaba Group, Australia and New Zealand Maggie Zhou said: “Since opening our ANZ headquarters in Melbourne last year, we have worked harder than ever to support the success of Australian businesses in China. These incredible results for Australian merchants demonstrate that we are succeeding in our mission to make it easier for local businesses to do business anywhere. “With 515 million annual active consumers now using our China retail marketplaces the opportunity for Australian businesses remains enormous, and we are excited to be part of the China journey for even more local brands in 2018.” The 2017 Tmall Global Annual Consumers Report was jointly published by Tmall Global and CBNData, a big data-based business research and integrated marketing communications strategy platform. Elsewhere, it found that Chinese post-millennials have become the main purchasing power for imported products, with content and emotional interaction becoming a major factor in driving consumers’ decisions when buying imported products. The report highlighted that people born in the 1990s have now become the biggest spenders on imported products, which come from a more diverse range of countries and are consumed more frequently throughout the year. Tmall Global sustained its position as the largest B2C e-commerce platform for imported products in China, with a market share of 27.6% in the fourth quarter of 2017. There is still significant untapped potential in this sector, with the report estimating annual growth of 20 per cent in transaction volume and a market scale of RMB620 billion by 2019.
Japan Post has reported its results for the period to 31 December 2017. In Toll Group’s international logistics business, operating income (revenue) increased by 3.6% or A$218.0 million year-on-year, to reach A$6,206.0 million, owing to the increase in operating income mainly in the Global Logistics business. Net operating income (EBIT) for the last quarter from October to December 2017 was A$66.0 million, exceeding Q3 in the previous fiscal year as well as Q2 in this fiscal year. EBIT for the nine months ended December 31, 2017 was A$100.0 million, representing an increase of 20.5%, or A$17.0 million, year-on-year. For the Postal and Domestic Logistics Business at Japan Post, revenue growth was driven by a continuous increasing trend in volume of Yu-Pack and Yu-Packet handled (25.0% increase year-on-year), themselves driven by growth in eCommerce markets. Operating income climbed 62.5% and net operating income rose by Y26.7 billion year-on-year to Y28.9 billion due to a rise in operating income exceeding an increase in expenses such as personnel expenses and collection, transport and delivery outsourcing expenses.
E-commerce company Amazon is reportedly trialling its own delivery service, news site TechRadar reports. According to news company the Wall Street Journal, Amazon’s new service encompasses pick-up of packages from businesses sell on its site through its Fulfilment by Amazon (FBA) service, and delivery to customers, taking over the task usually performed by dedicated delivery companies such as United Parcel Service (UPS) and FedEx. Although there have been no official reports from the company itself, the Wall Street Journal reports that the pilot scheme has already been launched in London, and soon will head to Los Angeles and other US cities.
JD.com, one of China’s largest online retailers, will open its regional headquarters in Melbourne, the Victorian Government has announced. JD.com has over 266 million customer accounts, and operates China’s largest nationwide fulfilment network, with seven fulfilment centres and more than 400 warehouses in 2,830 counties and districts throughout China. The company sells a wide range of goods, including vitamins, electronics, clothing and books. Following a visit by representatives from JD.com to the Food and Beverage Trade Week in Victoria in October, the Andrews Labor Government has been working closely with the company to encourage it to establish a presence in the region. “This announcement will give more Victorian businesses the opportunity to take their products to the world and is a clear indication that we’re leading the nation on the digital economy,” said Victorian Minister for Trade and Investment Philip Dalidakis. “We welcome JD.com with open arms and look forward to all the opportunities that this new regional HQ will bring to Victoria, including strengthening our economy and creating more local jobs.” Patrick Nestel, Manager of JD.com Australia, added: “Victoria’s wealth of high-quality suppliers, supportive government, 24/7 airport and largest container port in the southern hemisphere made it the obvious choice for JD.com’s new regional HQ.”
Australia Post has revealed that it completed more than 37 million parcel deliveries during December 2017, the busiest month in the organisation’s 209-year history. According to Bob Black, Chief Operations Officer and Executive General Manager – eCommerce Delivery at Australia Post, more than 2,000 extra staff helped the postal service handle the record volumes. “We made more than 37 million parcel deliveries in the four weeks leading up to Christmas, that’s almost 20 per cent more deliveries per day compared to last year making 2017 our biggest festive season ever,” said Black. “On average our drivers and posties made more than five deliveries per household across Australia, making it a huge team effort.” In the final week before Christmas, Australia Post delivered more than 11 million parcels, and more than 100 million greeting cards and letters. Several days in the week before Christmas recorded increases of more than 30 per cent across Premium and Express services. Black said Australians also embraced Australia Post’s range of delivery options, including weekend deliveries and extended trading hours, as well as parcel redirections, parcel pick-up directly from Australia Post facilities, and ‘safe drop’, whereby residents can nominate a safe place for parcels to be left at their property when they are not at home. The unprecedented parcels volumes started in November, after the Black Friday, Cyber Monday and Click Frenzy sales, and continued into the New Year. “Retailers now offer great deals online during the Boxing Day and new year sales, which have always been popular with Australians,” said Black. “It’s very much all hands on deck still, we’re still seeing record volumes through our network due to some amazing sales. Overall, online shopping purchases in Australia grew 15 per cent in 2017 compared with 2016, Australia Post shared.