The rapid growth of e-commerce platforms has come in the wake of changes in consumer shopping patterns. And with the recent COVID-19 pandemic, online shopping has become both a common routine and an indispensable part of life for most people nowadays. According to a report from Euromonitor International, the annual growth of e-commerce in 2020 reached 26.94% globally, and it showed double-digit growth over the next few years. This wave has driven more SMEs and individual sellers to sell their products to overseas markets through cross-border e-commerce platforms such as Amazon and Alibaba. On top of that, there are also many dropshipping companies on the market without warehousing and inventory, meaning that after the buyer places an order, the dropshipping company will deliver the goods directly to the wholesaler, avoiding the pressures of keeping inventory and making deliveries. However, regardless of the sales model, these individual sellers and SME e-commerce companies often ignore the complex process involved in cross-border sales, so their overall performance has not met expectations for growth.
Although Amazon, Alibaba, and other cross-border e-commerce platforms can provide services such as customs clearance, declaration, and logistics provider consultation, SME e-commerce companies still have to choose a suitable logistics provider on their own and complete account opening, identity verification, fill out cargo information, complete the declaration form, among other steps, before completing the delivery work. In addition to dealing with that complicated procedure, sellers must also be familiar with pricing methods, which vary across logistics companies, in order to balance cost and time. While it micro commerce not abundantly apparent, these extra considerations increase the operating burden for SME e-commerce companies, but at the same time they have promoted the rise of new logistics companies
Duncan Hui, general manager of Spaceship, an international logistics platform, said that even professional logistics teams at big e-commerce companies are not always familiar with the relative advantages of logistics companies or how each company requires its electronic forms to be filled out, so it goes without saying that it is even less possible for the teams at SME e-commerce companies to distinguish those differences. It is also the case that the freight calculation standards of logistics companies differ between corporate and individual users. That means that SME ecommerce companies often have to pay higher fees, just adding to the overall operating burden. Focusing on the operational pain points of SME ecommerce, recently emerging logistics startups have cooperated with international logistics companies while also making use of big data applications and computing, to help SME ecommerce operators shrink the delivery process, lower operating costs, and become more competitive in the e-commerce market.
Combining big data and AI to complete delivery in minutes
Spaceship, a new Hong Kong startup, combines the experience of a professional logistics team with a logistics and software ecosystem that empowers ecommerce merchants and consumers to reduce costs while delivering a reliable and efficient end to end shipping experience. It currently works with more than 30 global logistics services to provide a one-stop convenient delivery platform that helps consumers and SME ecommerce companies find delivery services that meet their service demands. Using innovative technology and AI, it launched an international shipment booking and management online platform, which provides one-click, real-time price comparison and booking services that is optimized for e-commerce delivery including delivery time prediction, tax prediction and more. This platform simplifies the complicated international shipping process, and greatly shortens the time to process a shipment order by nearly 6 folds.
In addition to establishing partnerships with more than 30 logistics companies, Spaceship can also use big data analysis technology to recommend the optimal delivery plan according to the user's shipment information and automatically notify and assist users with special delivery requirements. Using its 24-hour online reservation system, users can book point-to-point logistics services in more than 280 countries around the world with a single click and with exclusive discount price; they can even arrange shipments online anytime, anywhere.
Hui pointed out that Spaceship team members, with their abundant experience in the logistics industry, are well aware of the logistics pain points for SME e-commerce in the delivery of goods. That is why, in the design of the software operation interface and logistics distribution process, they began from thinking from the user's point of view. Compared with the traditional, self-initiated delivery process, it is both more convenient and efficient, greatly reduces delivery time, and has received high marks from users.
The highly active venture-capital scene of Hong Kong with the enthusiasm of the startup team in Taiwan
Although Spaceship was established in Hong Kong, it also saw the bigger scale of Taiwan's market and its more mature e-commerce environment, so it didn't take long after launching services in Hong Kong that the team set up an operating base in Taiwan to provide innovative delivery services for consumers and e-commerce operators. Spaceship believes that the evaluation of VC companies in Hong Kong and Taiwan, two places where the team has fundraising experience, focuses on uniqueness and the future prospects.
Hui said that in addition to setting up a company in Taiwan, Spaceship has also cooperated with legal entities such as the Taiwan Tech Arena (TTA), and has obtained opportunities to participate in various programs and activities. It has also obtained investment from teams such as 500 Global, SparkLabs Taiwan, and Paragon Investment. Through its cooperation with the TTA, it was also invited to participate in Meet Taipei, where the Spaceship team interacted and learned from other startup teams, the energy of Taiwan startup companies making a deep impression on them. While it is growing quite fast in terms of performance in Taiwan and Hong Kong, Spaceship also plans to enter more mature markets, such as Southeast Asia, Japan, and the US, in 2023, and strive to capitalize on the business opportunities in international logistics and distribution.
Spaceship General Manager Duncan Hui
Photo: Company
Spaceship
