DHL eCommerce expands in Thailand's booming e-commerce market
By Digital News Asia March 6, 2017
- Pick-up service extended to small e-commerce merchants with next day delivery in remote areas
- Growth to be driven by SMEs extending their business models into online marketplaces
DHL eCommerce, a division of the logistics company, Deutsche Post DHL Group, is capitalising on the booming Thai e-commerce market expected to more than triple in size to 3.6 billion euro between now and 2020 by enhancing its nationwide coverage with next day delivery in remote areas and extending pick-up service to small e-commerce merchants to meet its growing customer demands.
DHL eCommerce, launched January 2016 in Thailand, offers end-to-end domestic delivery services and easy access for local businesses to expand globally through affordable B2C international cross-border shipping and scalable, pay-per-use fulfilment solutions through a global fulfilment network within Deutsche Post DHL Group.
"The e-commerce market in Thailand is currently second largest in Southeast Asia and expected to grow 22% annually till 2020. Along with this remarkable growth, there are increasing demands for cost-effective and high quality logistics solutions to meet rising consumer needs. As such, we are investing now to ensure we are the provider of choice for Thai consumers," said DHL eCommerce Thailand managing director Kiattichai Pitpreecha.
"We are strengthening our delivery network across the country in order to offer second-to-none nationwide service across Thailand. This will enable merchants to reach out to the growing base of e-commerce consumers outside Bangkok in major provinces and rural areas with superior service quality.
“We have also extended our pick-up service to include small and large merchants. For the 2.7 million SMEs in Thailand, this means greater convenience and a quicker process to deliver to their consumers -- with less time spent travelling and waiting in queues to drop off their goods, they can spend more time focusing on growing their business."
Over the past year, DHL eCommerce Thailand has invested significantly in people, service, facilities, vehicles and coverage.
The DHL eCommerce 3,222 sqm central hub in Bangkok and its domestic delivery network across Thailand have the capacity to handle over 15 million shipments annually.
For merchants, DHL eCommerce offers access to Cash on Delivery (COD) with daily remittance as well as access to a multilingual call centre and IT integration of online orders to allow shippers to prepare orders for delivery into the DHL network.
Cross-border service to help customers expand overseas
DHL eCommerce also enables Thai businesses to grow internationally and tap on the international e-commerce market through its range of international cross-border shipping products and scalable, pay-per-use fulfilment solutions.
"We are incredibly positive about the Thailand economy and we are committed to its development. The Thai government's ' Digital Thailand ' initiative started in 2016 has brought about a wave of opportunities for businesses across different industries to digitize their operations and services, especially for SMEs to undergo digital transformation," said DHL eCommerce Asia Pacific CEO Malcolm Monteiro.
"Thailand is ranked as one of our top priority markets in Southeast Asia, and we foresee growth to be largely driven by significant numbers of SMEs extending their business models into online marketplaces. DHL eCommerce is committed to enabling Thai businesses as they fully leverage the huge e-commerce growth locally and internationally."
As noted in a recent DHL Express report on the e-commerce industry, the cross-border market opportunity offers growth rates (~25%) not found in most traditional retail markets.
DHL eCommerce, along with its sister company DHL Express is helping to connect Thai e-tailers to the world through DPDHL Group's range of cross-border delivery solutions.
To cater to varying customer requirements, DHL Express offers premium and faster delivery services while DHL eCommerce provides affordable solutions.
Thailand -based businesses can also leverage on DHL eCommerce's global network of fulfilment centres in the US, Mexico , Europe , Hong Kong , Australia and India so that merchandise can get to the consumers in those regions quicker.
"Cross-border B2C e-commerce is forecasted to grow to US$1 trillion in 2020. DHL eCommerce Thailand has witnessed tremendous growth in the past year and we are enhancing our service to meet the growing consumer demands," said DHL eCommerce CEO Charles Brewer.
"We are incredibly proud to be delivering the smile in the last mile and we will continue to provide more first and last mile solutions."
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