DHL eCommerce has taken a further step in its international expansion with the launch of nationwide domestic delivery operations in Vietnam which will offer a range of services tailored to the country's booming e-commerce industry while helping small, medium and large e-tailers and marketplaces increase their share of this rapidly-growing segment.
“The Vietnamese e-commerce market represents a huge and relatively untapped potential for local retailers, e-tailers and marketplaces: in 2016, total e-commerce spending hit US$1 billion despite barely over 50% of the population being online,” said Charles Brewer, CEO, DHL eCommerce.
“With e-commerce spending expected to grow at around 23% per year between now and 2020, local e-tailers need scalable, high-quality logistics solutions with nationwide coverage more than ever before,” he added.
Earlier this year, in an an exclusive interview with CEP-Research, Brewer said his main objectives for 2017 were to expand the unit’s geographical coverage, to offer “seamless” services for customers and to make DHL eCommerce “the default choice in e-commerce”.
DHL eCommerce Vietnam offers domestic delivery nationwide across the country, managed by hubs and depots strategically located throughout the country. DHL eCommerce’s fleet of vans and bikes, coupled with regular air and road connections between its hubs, will support next-day delivery in Ho Chi Minh, Hanoi and other primary markets.
When using the network, local e-tailers can assign shipments requiring cash on delivery service through DHL eCommerce’s online portal, allowing for faster remittance and simpler management of shipment information. Consumers will also be able to open, check and return goods at the point of receipt thanks to DHL’s Open Box Delivery service, better aligning the online shopping experience with their preferred purchasing habits.
“Only 15% of Vietnam’s e-commerce shoppers paid online in 2016, making cash on delivery a must-have feature for e-commerce to succeed. That, combined with concerns about the hassle of returns and refunds, has made growth an uphill battle for many local e-tailers,” said Thomas Harris, Managing Director, DHL eCommerce Vietnam.
“We recognize that having a fast and reliable delivery service won’t solve these issues alone, which is why we’ve tailored our nationwide network to seamlessly handle cash payments with next day cash remittance and returns to take the burden off local e-tailers so they can fully focus on growth and customer experience.”
Following significant organic growth last year, 2017 has so far seen DHL eCommerce start a B2C domestic delivery operation in Chile, broaden its geographical and service coverage of Thailand while launching a new commercial product enabling Singapore-based customers, including online and traditional retailers, to ship to US consumers at a low cost.
The unit has also increased its presence in South China and open an outbound cross-border Distribution Center located at Tokyo's Narita Airport this year.
In a separate development and in line with the recent DPDHL Group announcement to reduce all logistics-related emissions to zero by 2050, DHL eCommerce has begun deploying the use of electric motorcycles in its domestic delivery operations in Vietnam.
The current fleet of vehicles includes a range of electric bikes and the company will be exploring plans to roll out more as part of its GoGreen commitment.
