DHL eCommerce inks pact with Shoppee M’sia
KUALA LUMPUR: DHL eCommerce, a division of Deutsche Post DHL Group, has signed a partnership with Shopee Malaysia to boost its growth in Malaysia.
DHL eCommerce Southeast Asia managing director Kiattichai Pitpreecha said since its launch in Malaysia in April 2017, the company has grown 600 per cent and expects the growth trend would continue.
“Currently, the group has less than 10 per cent market share in Malaysia and we are boosting efforts to expand the customer base by partnering with all interested parties,” he told reporters after announcing the partnership yesterday.
Shopee head of operations Esten Mok said the partnership would allow sellers on Shopee Malaysia 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
Currently, the group has less than 10 per cent market share in Malaysia and we are boosting efforts to expand the customer base by partnering with all interested parties. Kiattichai Pitpreecha, DHL eCommerce Southeast Asia managing director
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 from 2018-22 and total retail market share to increase from 3.0 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 2018, Shopee’s regional growth tripled to 111.4 million gross orders with a gross merchandise value of US$1.9 billion (US$1 = RM4.09) compared with 35.1 million orders valued at US$600 million in the same period last year. — Bernama