Cainiao sets up direct cross-border returns channel

Alibaba’s Cainiao Smart Logistics Network has launched a cross-border reverse logistics channel from Hong Kong to mainland China. This will apply to roughly 85% of goods ordered through the Taobao and Tmail e-commerce platforms.

The goods will be eligible for returns within seven days. Those not eligible include good and health products/supplements. With the 42 drop-off locations in Hong Kong in place, Cainiao plan to extend the cross-border returns service to Singapore, Malaysia, Russia, Taiwan and Macau.

Customs clearance and cross-border logistics issues have been a barrier to setting up a reverse logistics channel for different territories and markets. With e-commerce returns rates consistently being around 20% (30% in peak seasons), 30% of customers have kept unwanted goods rather than put up with the hassle of returning them. This issue impacts their repeat custom.

“Today, goods returns form an integral part of the holistic online shopping experience, and central to good customer experience and loyalty. Therefore, we are aiming to simplify the returns process with the launch of the first reverse logistics channel between Mainland China and Hong Kong, and deliver a more seamless and fuss-free shopping experience amid the eCommerce boom. As Taobao and Tmall’s official logistics provider, we are continuously leveraging cutting-edge technology and industry partnerships to create a more efficient cross-border logistics service to benefit businesses and consumers,” says Ray Cheuk, Head of Operations (Hong Kong), Cainiao Network.