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Tag: cod

  • DHL brings “Cash on Delivery” to Malaysia, Thailand, & Vietnam

    DHL brings “Cash on Delivery” to Malaysia, Thailand, & Vietnam

    E-commerce exporters in China and Australia, consumers in Malaysia, Thailand and Vietnam, and DHL eCommerce are all expecting benefits from the introduction of a Cross Border Cash-on-Delivery (COD) system by Deutsche Post DHL Group.

    The DHL e-Commerce Cash on Delivery (COD) service will allow consumers in the three Asean countries to pay in cash when they receive their online purchases.

    With more than 73 per cent of Southeast Asia’s population unable to access credit cards or internet banking services, DHL is realising that reverting to low-tech cash has the potential to see significant increases in volume (and revenue), as the regions burgeoning middle-class looks further afield for their purchases.

    “The low level of credit card penetration has forced e-commerce retailers to offer alternative modes of payment methods, such as cash on delivery, digital payments, and in some cases paying in-store”, said Charles Brewer, CEO of DHL eCommerce.

    “This opens up a huge potential by reaching out to a new group of unbanked consumers, and also meeting the needs of consumers who prefer to pay in cash.

    “With our fully-owned domestic delivery network in Malaysia, Thailand and Vietnam, we are able to deliver on-time with secure features like cash-on-delivery”, Mr Brewer added.

    The DHL eCommerce COD service allows sellers, specifically in China and Australia, to collect cash on delivery in the three Asean member states, with payment status tracking available on the DHL portal. Vendors receive their money every 14 days.

    Comprising a total solution, DHL eCommerce offers parcel pick-up, easy IT integration of the seller’s inventory into the DHL shipping process, end-to-end tracking, dynamic routing and distribution, returns management, and more.

    DHL Vietnam to truck Sendo’s local sales

    Meanwhile in Vietnam, DHL recently announced a partnership with Sendo, Vietnam’s leading local e-commerce platform.

    The deal will see the German logistics giant provide delivery to Sendo customers in Ho Chi Minh City (HCMC), Hanoi, and other primary markets in the country.

    Describing the deal as delivering benefits to everyone, Tran Hai Linh, CEO of Sendo said the international standard delivery service will boost the confidence of the country’s eCommerce shoppers, and deliver increased business to the 300,000  vendors, micro-entrepreneurs, and small businesses who sell their products online.

    To kick-start the arrangement DHL eCommerce has placed more than 300 ServicePoints in locations that provide easy access to Sendo’s sellers.

    Vendors can either drop off their parcels and receive discounts of up to 20 per cent, or arrange for a pickup by DHL for direct door-to-door delivery.
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  • Most e-commerce transactions still use ‘COD’

    Most e-commerce transactions still use ‘COD’

    THE majority or 80 percent of e-commerce transactions in the Philippines are still cash-on-delivery transactions, according to a report by the Asian Development Bank (ADB) and United Nations Economic and Social Commission for Asia and the Pacific (Unescap).

    This despite the high Internet penetration rate in the Philippines. The report, titled “Embracing the E-commerce Revolution in Asia and the Pacific,” said there are 56.75 million Filipinos who have access to the Internet.

    The report said this can be due to the lack of available e-payment options that force Filipinos to resort to cash on delivery, placing consumers at risk.

    “The lack of well-developed e-payment systems forces e-commerce firms to rely on fragile business models. For instance, COD can create friction between buyers and sellers, because it involves a high degree of uncertainty whether vendors get paid. Another is the safety of customers, who can be threatened if they refuse to pay for unsatisfactory goods,” the report stated.

    This could be one of the reasons e-commerce transactions in the country remain low. In 2015 the report said, only 0.5 percent of retail sales in the Philippines are conducted online in 2015.

    Apart from these reasons, geography concerns, particularly for island economies, prevent the increase in e-commerce transactions.

    The Philippines, being an archipelago, further complicates the delivery and return of goods bought via online or electronic transactions.

    “An underdeveloped delivery system is a major roadblock for developing e-commerce. But improving delivery systems are difficult when geographic factors are involved. For example, Indonesia has more than 17,500 islands. The Philippines has 7,641. So delivering products cost-effectively is challenging,” the report stated.

    The underdeveloped e-commerce system poses a huge disadvantage, especially to small and medium enterprises (SMEs) who stand to benefit the most from such a system.

    In a statement, the ADB said that through e-commerce systems, SMEs can “reach global markets and compete on an international scale” while “creating many jobs in the process.”

    The ADB cited the need to develop viable e-commerce ecosystem which requires a holistic approach and concerted efforts by all stakeholders in e-commerce development, including national governments and international development institutions, trade associations and industry bodies, businesses (e-commerce vendors, payment service providers, and logistics service providers, among others) and consumers.

    It added that policy priorities should be on establishing a legal and regulatory framework for e-commerce, harmonizing international laws and standards, promoting information and communications technology infrastructure development, broadening Internet access and affordability, and supporting financial and e-payment infrastructure.

    “Emerging digital technologies are transforming the e-commerce landscape and offer a new set of modern solutions and opportunities to build more inclusive growth and spur innovation,” ADB Vice President for Knowledge Management and Sustainable Development Bambang Susantono said.

    “It offers a chance to narrow development gaps—whether demographic, economic, geographic or cultural. It also helps narrow the rural-urban divide. However, realizing the full potential of e-commerce calls for coordinated regional and global efforts,” Susantono said.

    Asia and the Pacific is the world’s largest business-to-consumer e-commerce marketplace and continues to grow rapidly, the report said.

    By the end of 2015, the size of e-commerce relative to gross domestic product was 4.5 percent in Asia and the Pacific compared to 3.1 percent and 2.6 percent in North America and Europe.

    The Internet retailing market share of Asia and the Pacific is expected to reach around a half of the global total by 2020.

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  • Chinese firm plans to process re-fresh cod products for Shanghai retail

    Chinese firm plans to process re-fresh cod products for Shanghai retail

    Beiyang Jiamei Seafood, a Chinese processor switching its business from exports to imports, plans to expand into re-fresh products for the domestic market.

    The company, which is based in Qingdao, hopes to start processing re-fresh, packaged cod products for retail in Shanghai early next year, said Peng Song, its general manager.

    “We have in mind selling re-fresh cod and redfish. I think cod, both Atlantic and Pacific, can be very big in the Chinese market,” he told.

    If this model works, it could then be applied in other Chinese cities, he said. “I think we would be the first company in China to do this,” he said, during the China Fisheries & Seafood Expo.

    The company is also starting to sell frozen cod products into Chinese retail, wholesale and foodservice.

    “For the big, longline Pacific cod, we cut it into steaks. For the Atlantic cod, we make loins, portions and J-cuts,” he said. “I do think this item will boom in China, in a very short time.”

    Chinese in coastal cites do eat Pacific cod, he said, as the same species that is caught by Russians and American vessels is also in Chinese waters.

    But, the species is not sold as “cod” and consumers are unfamiliar. “The catching is inconsistent, so people do not like to promote it. The species may not be new, but to name it Pacific cod, Atlantic cod, that is new,” he said.

    The company is also putting the Marine Stewardship Council (MSC) logo on its cod retail bags.

    “We now have most of our products MSC approved. I think that is the future,” said Song.

    “The MSC is also fully traceable, from catch-to-plate. That is a powerful message for the Chinese consumer, who is worried about food safety,” he said.

    Promoting the traceability angle of the MSC logo is the best way to expand in the China market, he said, due to the concerns over food safety in China.

    Shift to domestic sales

    Beiyang Jiamei now generates around $35 million from domestic sales, as well as the same amount from re-processing and exporting.

    For the re-processing business, cod, haddock and arrowtooth flounder are the main species, he said.

    The company only started doing domestic sales in 2011. Beiyang Jiamei is selling into wholesale, into retail and foodservice, and also via online stores on JD.com and Tmall.

    Beiyang Jiamei’s main brand is “Sea Mix”, but it also has another for families, “Dinosaurs”. Also, the company is launching a high-end brand, “Prime Catch”, for crab and other more expensive items.

    A big focus of the domestic business, including e-commerce, is coldwater shrimp. Beiyang Jiamei imports around 5,000 metric tons of coldwater shrimp a year.

    Due to the quota cuts for coldwater shrimp in Canada, the company is now importing more vannamei from Ecuador and also red shrimp from Argentina.

    “We use coldwater shrimp to open the door to the supermarkets. Then, we try and introduce our other products to them. Coldwater shrimp will remain the most important item to us,” he said.

    “Needless to say, the high prices of coldwater shrimp mean vannamei has taken a share of the market,” said Song.

    “The price is RMB 91.50 ($13.53) per kilogram. This is the same price as L1 [Argentine shrimp] or 30/40 from Ecuador,” he said.

    “In China, if you entertain a guest, you want the bigger size to create a good impression”, meaning the vannamei and Argentina shrimp has a strong appeal, he said.