SEKO Logistics launches business unit dedicated to e-commerce

SEKO Logistics has announced that it is “leveraging the advantages of the company's early entry into the global e-commerce market” with the launch of a new business unit - SEKO Ecommerce.

The aim is to grow its international cross border shipping, global fulfillment, heavyweight last mile, and returns and recommerce solutions into “a multi-billion dollar-plus business by 2025.”

The US-headquartered firm said the global e-commerce market grew by 24% in 2020, producing market sales revenues of $4.2 trillion. Another year of record growth in 2021 is expected to boost sales to nearer $4.9 trillion.

It underlined that the launch of SEKO Ecommerce reflects the rise of Direct to Consumer (DTC) brands selling through their own channels utilizing platforms such as Shopify.

SEKO Ecommerce expects rapid growth by working with brands selling through multiple channels and marketplaces, including Alibaba, Amazon, eBay, Tmall, Walmart and more “as it continues to build its reputation as the global logistics provider that connects ecommerce to the primary supply chain.

Revenue 'more than doubled'

E-commerce accounts for 40% of SEKO Logistics’ annual revenues and has more than doubled in size in the last 12 months as online consumer purchases accelerated during the COVID lockdown.

“This growth has been boosted by SEKO’s ability to offer fast ‘plug and play’ solutions for retail brands entering the e-commerce market for the first time, as well as digitally native brands and start-ups and existing online merchants targeting rapid cross border growth,” the company noted.

The new business unit is led by David Emerson, previously SEKO's Vice President of Sales-EMEA.

Chris Zheng has also been promoted to Senior Vice President – Global Cross Border - for SEKO Ecommerce. He was previously Executive Vice President at Air-City, a company SEKO acquired in 2019.

Impact of COVID

SEKO moved into the global ecommerce space in 2011 and operates 15 regional fulfilment centers in China and Hong Kong, the US, Australia and Europe.

“The impact of COVID has accelerated what was already happening in the global e-commerce market, in terms of rapid year-over-year growth,” said James Gagne, President & CEO of SEKO Logistics.

“The launch of SEKO Ecommerce advances our ability to embrace this demand by bringing all our e-commerce solutions together under one leadership team. SEKO was an early adopter of e-commerce in 2011, and this next evolution enables us to see the market through one lens, and to globalize what we offer. E-commerce penetration has essentially accelerated five years overnight. We are in a unique position to grow, both organically and through acquisition, by leveraging the measurable advantages of our business model.”

'Fundamentally different' to integrators

SEKO Ecommerce will offer clients four core solutions: International E-commerce Shipping & Delivery Services; Global E-commerce Fulfilment; Global Parcel Returns & Recommerce; and Heavyweight E-commerce Shipping & Last Mile Delivery.

It will continue to primarily work with fashion, beauty, cosmetics, tech and lifestyle clients, which have spearheaded SEKO's e-commerce growth for over 10 years while also working with other aggregators and postal operators to better facilitate global international e-commerce parcel shipping.

David Emerson commented: “For a lot of brands, using integrators to move their products is the ‘easy button’ when they start out, but our model is fundamentally different. Integrator services are essentially built for scale, but scale is not always what clients want. They need speed, reliability, accountability, and support from a partner like SEKO which truly understands their business. Price points are critical too; a $12 dress doesn’t need a $25 delivery cost.”

He continued: “SEKO has a big advantage with international e-commerce because we have our own middle mile - airfreight - whereas a lot of our competitors have to buy that in. We’re also winning business through our investments in global fulfillment centers strategically located across the globe and all connected through a single technology platform. This works best for clients who need co-locational stock. If a company, for example, needs inventory in Hong Kong, Melbourne and Los Angeles, there are not many companies that can help, whereas SEKO Ecommerce can.”

For his part, Chris Zheng, SVP Global Cross Border, remarked: “As a lot of the traditional e-commerce market drops down into the mail market, this leans into our commercial model too, and we also see a significant opportunity to lean into the integrators’ world to earn a share of the 600 million parcels they carry each month into the US. A lot of brands are questioning if they need to use a full tariff, two-day service. We will give them options best-suited to their business model.'