Alibaba Group Holding Ltd (NYSE:BABA) the ecommerce giant has decided that it would ramp its delivery processes for merchants on its eMarketplaces with a new logistics partner.
The company announced that it would team up with Singapore Post to allow sellers to deliver their products with better ease. This would be especially helpful when the sellers are servicing overseas customers, the company reported.
Alibaba Group Holding Ltd (NYSE:BABA) has also launched its Alibaba Merchant Delivery Scheme under a membership business model. The company hopes to see sellers located in regions where Singapore Post services to avail the delivery services.
Singapore Post currently has e-commerce services and has also been bundling several other key solutions as well. These include postal as well as logistics solutions. The advantage with using the local partner is that it provides these services at very competitive rates as against the private players in the region.
Alibaba Group Holding Ltd (NYSE:BABA) fights for its rightful market share, even as other smaller players crowd the ecommerce market place. It will have to double its efforts in better delivery services via its partner sellers.
Additionally, it is working on the technology front as well to ensure that it does not have to fight copyright infringements; if dubious sellers chose to sell fakes on platforms.
In the meanwhile, Alibaba Group Holding Ltd (NYSE:BABA) is well on its way to double its efforts and build robust logistics infrastructure. This will be a necessary arsenal for the company as Amazon.com, Inc, the US-based ecommerce giants continues to make inroads into regional markets worldwide. Amazon has already begun its south Asian services on a strong footing, especially in India, grabbing large market share of the local players.
Hence, the key factor for Alibaba is to ensure that it has strong logistics solution partners at the international level as well to help it to establish itself better among its customer base.