Shopee, DHL unit ink tie-up
KUALA LUMPUR: DHL eCommerce, a unit of Deutsche Post DHL Group, has partnered Shopee Malaysia to boost its growth in Malaysia.
DHL eCommerce Southeast Asia managing director Kiattichai Pitpreecha said since its launch in Malaysia in April last year, the company had grown 600 per cent, and it expected the growth trend to continue.
“Currently, the group has less than 10 per cent market share in Malaysia and we are boosting efforts to expand our customer base by partnering with all interested parties,” he said after announcing the partnership, here, yesterday.
Shopee head of operations Esten Mok said the partnership would allow sellers on Shopee to ship their goods via DHL with next-day deliveries to 92 per cent of zip codes across Malaysia and two to three days in other remote areas.
“The e-commerce industry cannot exist without a strong and efficient logistics system as it is a crucial part of the entire online shopping process.
“As a platform with 10 million users and a rapidly growing user base, the partnership with DHL would help strengthen our value proposition to meet changing user demands,” he said
Kiattichai said the compound annual growth rate of e-commerce in Malaysia was expected to be around 22 per cent for 20182022 and total retail market share to increase from three per cent to 6.9 per cent in 2022.
“The growth of e-commerce in Malaysia is dampened by a quality gap in delivery which impacts the confidence of consumers.
“Delivery played a big role in the entire e-commerce experience where 80 per cent of consumers considered delivery as part of their online shopping experience and 70 per cent will not shop with a retailer after a bad experience,” he added.
For the first quarter of this year, Shopee’s regional growth tripled to 111.4 million gross orders with a gross merchandise value of US$1.9 billion (RM7.8 billion) compared with 35.1 million orders valued at US$600 million in the same period last year.