A DELIVERY service launched by DHL eCommerce that makes use of shops as drop-off points has received a boost with the participation of nationwide retailer SE-ED Book Center.
The logistics operator yesterday said the operator of the bookstore chain was joining its domestic delivery service known as e ServicePoints, tapping demand in the fast-growing e-commerce sector.
The collaboration announced yesterday between DHL eCommerce and SE-ED Book Center means that the book retailers’ outlets nationwide will become part of the ServicePoints network. Until now, the participating shops had been small operators. DHL eCommerce started the service nine months ago.
Under the service, registered and walk-in customers can drop off their parcels at ServicePoints for nationwide delivery. Soon, shoppers will also be able collect their e-commerce orders from these ServicePoints
Kiattichai Pitpreecha, managing director of DHL eCommerce Thailand and Southeast Asia, said that the ServicePoints service is designed to offer a convenient domestic logistics service for small online merchants that typically need to send out five to 10 products a day. For such deliveries, the customers are usually nearby.
“Thailand's e-commerce sector is the second largest in Southeast Asia and has 22 to 25 per cent growth per year,” Kiattichai said.
“This pattern of growth is expected to continue over the next five years. The Thailand 4.0 initiatives also are encouraging a lot more small and medium-sized enterprises (SMEs) to turn to e-commerce. Therefore, there are a lot of demand for domestic delivery services. We want to offer Thai merchants and consumers a quality choice for logistics with an easy and convenient service.”
There are around 100,000 small online merchants on the four main e-marketplaces in the country, Lazada, 11Street, Shoppee, and JD.com.
Through the partnership, ServicePoints will be available at 150 SE-ED Book Center shops in Bangkok and across the country. The service rollout will reach all 394 branches by end of this year.
DHL eCommerce plans to expand the DHL ServicePoint network to more than 1,000 locations by the end of 2018, before increasing this number to 3,000 in 2019.
“ServicePoints is a shop-within-a-shop concept that facilitates the need for people to drop products for delivery at a retail shop,” said Kiattichai.
“The parcels can be processed within seconds and customers will receive immediate shipment confirmation via SMS or email. The process at the ServicePoint is quick and hassle free, with no need to stand in long queues. The DHL ServicePoint network aims to serve the growing SME and C2C markets' unmet demands.”
In addition, consumers will soon be able to use SE-ED Book Center outlets as an alternative delivery address for their domestic e-commerce orders.
“We will continue to offer more access points, more payment options and an integrated service delivering the quality to enable easier and simpler access to the rapidly growing Thai e-commerce ecosystem," added Kiattichai.
He expected that over the next 12 months, some 25 to 30 per cent of all parcels handled by DHL eCommerce will be delivered via ServicePoints. This would represent an increase from 5 per cent for previous nine-month operation.
“The total volume of parcels we delivered in 2017 increased by four times from 2016. We expect the same growth for this year,” Kiattichai said.