Ecommerce: Silver Lining for Postal Operation In Times Of Mail Volume Drop

The Treaty of Bern of 1874 was a pivotal moment for postal operators globally. It harmonized postal interoperations worldwide, and what followed was a global boom. It lasted for some 140 odd years. But today, the global postal volume is being clouded by the internet and new age communications. The Universal Postal Union has reported a decline of 9% in the international mail and 3.2% in the domestic letter post-traffic.

However, unless you have been living under a rock for the past decade, you must be well-aware of the eCommerce boom and its remarkable growth story around the world. Rising internet penetration and the snowballing reach of smartphones have created the perfect storm for the eCommerce industry. Thus, even in the times when mail volumes are dropping, the postal operators are facing a silver lining!

Rising eCommerce Opportunities for Postal Operations

According to Mark Woo, Google’s Head of eCommerce, Travel & Financial Services, Asia Pacific accounted for 40% of global eCommerce sales in the first quarter of 2017. Most of these sales went to mature markets like China, Japan, Australia, South Korea, and India. Apparently, Southeast Asia is poised to be the “next big thing” in the APAC region.

This growth has opened immense opportunities for the postal service providers. Due to their expansive network and offices in even the most remote areas, postal operations have a golden opportunity to transform themselves into comprehensive eCommerce fulfillment service providers.

Since postal operators have all the required assets, they have enormous potential to earn more from other aspects of eCommerce logistics. This way they can not only scale up their business, but also bypass the clutter and the intense competition present in the parcel delivery domain.

Quite interestingly, the eCommerce boom has also resulted in a direct competition in the parcel delivery domain. Thus, it has become necessary for 3PL players, especially the postal operators, to modernize and equip themselves with eCommerce capabilities to be a part of this growth narrative. Naturally, more and more postal operators have been realizing that there is a lot more money that can be earned by doing a little more than just parcel deliveries.

Pos Malaysia’s Partnership with Anchanto

Last month, Pos Malaysia Berhad (Pos Malaysia) – Malaysia’s postal and courier company, partnered with us to expand their capabilities, in the wake of growing eCommerce business in the region. By utilizing our eCommerce Warehouse Management System, Pos Malaysia aims to transform into a comprehensive e-fulfillment service provider. This integration will help Pos Malaysia to provide an array of end-to-end customer services such as smart warehousing and last mile delivery.

Pos Malaysia is also using our multi-marketplace selling software-SelluSeller, and the entire system is aimed at strengthening their presence in the e-fulfillment business. Pos Malaysia has planned to offer the complete range of e-fulfillment services such as parcel delivery products and services, reliable quality packets, competitive prices, and high-level support for warehousing management as well as packet and parcel preparation.

Pos Malaysia’s partnership with Anchanto comes in the wake of the launch of the Digital Free Trade Zone, first of its own kind in the world. The DFTZ will facilitate SME’s to grow using new technology and capitalize on the growth of internet economy and cross-border eCommerce activities. The integration will help Pos Malaysia generate new revenue streams in eCommerce fulfillment and capitalize on the double-digit growth of the eCommerce industry.

The Role of Anchanto

We will be integrating our electronic warehouse management system with Pos Malaysia’s own processes. As all our products are dynamic and do not follow a fixed template, it is possible for us to seamlessly integrate our technology with Pos Malaysia’s existing processes. I firmly believe that if you are trying to build a template, you will end up with one size that fits none.

We have built our products and services after pouring in our practical experience of running full-service offerings of our own for 5 years in Singapore. We have been delivering services, fulfillment solutions and partnerships that drive value and revenue for clients across all markets in Asia. As the fastest growing “open” eCommerce selling and logistics software network, it is our primary endeavour to incorporate innovation to connect all key players in the industry to the global eCommerce ecosystem.

The Future for Postal Operators in the eCommerce

The eCommerce industry is experiencing an unparalleled growth rate every year. Considering the technological innovations that are lined up for the future, this number is only going to increase further. As we have been saying, the future of eCommerce is “open” integration with global cross-border ecosystems.

According to a Frost & Sullivan report, eCommerce revenue in the Southeast Asia region is expected to exceed up to US$25 billion by 2020. In 2015, this number was just US$11 with Malaysian and Thai markets contributing the highest revenues of US$2.3 billion and US$2.1 billion respectively. Although vociferous, these numbers are just the tip of the iceberg.

Sensing the upcoming trends, giants like transcosmos, HGS logistics, B Group, Expansys, and Syscon have already joined the eCommerce bandwagon. Whether you are a Brand, a logistics or warehousing business, eCommerce capabilities are going to be crucial & deciding parameters in the coming time.

 

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