Cross-border Innovative Solutions
The global e-commerce market is steadily growing. While e-commerce used to focus on "convenient purchasing," it has now become so accessible that even individuals can easily and quickly sell products as a side business.
The trend of direct purchasing aligns with the evolving dynamics of e-commerce. Previously, consumers would buy products at relatively lower prices from overseas platforms like Amazon, eBay, AliExpress, and Temu. Now, there is a growing demand for selling domestic products abroad, leading to mutual growth through "reverse direct purchase”.
Reverse direct purchase requires sellers to handle many aspects like distribution, logistics, shipping, and customs procedures. CJ Logistics has entered the reverse direct purchase logistics business to ease these challenges for domestic sellers. They are also creating an environment that transforms reverse direct purchase into a booming market by collaborating through their solutions, ensuring overseas consumers can reliably purchase products.
What is "Reverse Direct Purchase"?
We are familiar with direct purchase, where domestic consumers buy goods directly from foreign online sites. Reverse direct purchase, on the other hand, refers to foreign consumers purchasing goods from domestic online shopping malls.
Reverse direct purchase gained significant attention during the COVID-19 pandemic as the non-contact trend accelerated globally. The rise of online consumption brought K-culture to the forefront among the MZ generation, leading to increased interest in Korean cultural content, food, and products. With platforms enabling anyone to start selling online, reverse direct purchase for global consumers has markedly increased.
Countries with high purchasing power, like Singapore and Indonesia, are forming stable markets. The logistics business based on fandom culture, such as K-Pop merchandise and albums, is also expected to accelerate. CJ Logistics' logistics network, established with local overseas delivery partners, is anticipated to play a crucial role in the reverse direct purchase business.
Save Costs, Simplify the Process:
The Core of Reverse Direct Purchase is Logistics!
Korea's reverse direct purchase market began with major e-commerce companies. They handled various brands and goods while integrating with logistics systems, making it relatively easy to enter foreign markets. Recently, logistics companies have been leading this trend. CJ Logistics, a global SCM solutions company, officially partnered with Singaporean logistics giant ‘Ninja Van’ in April to pioneer the reverse direct purchase market in Southeast Asia, where it is most active.
Ninja Van, a leading logistics company in Southeast Asia, provides customs clearance and delivery services in six countries: Singapore, Malaysia, Indonesia, Vietnam, the Philippines, and Thailand. They partnered with CJ Logistics amid their efforts to innovate and advance delivery using cutting-edge digital technology, including real-time transport tracking systems. This partnership essentially opens the "Southeast Asian Reverse Direct Purchase Highway." Clients can use CJ Logistics' services for one-stop logistics from Korea to the final consumer in Southeast Asia without seeking customs and transport providers.
Expanding the Reverse Direct Purchase Network Worldwide
In May, CJ Logistics announced the establishment of a reverse direct purchase logistics network connecting export customs clearance, forwarding, and local delivery by partnering with leading logistics companies in the United States and Japan. Combining CJ Logistics' capabilities with the stable delivery networks of local logistics companies offers superior service competitiveness in cross-border e-commerce (CBE).
CJ Logistics' American delivery partners include multiple major logistics companies like FedEx. Goods transported via CJ Logistics' air forwarding to LA, New York, and other regions are delivered by logistics companies with dense delivery networks. In Japan, top-tier local delivery companies handle the final delivery of reverse direct purchase goods to customers.
Leading the Future Cross-Border Logistics Market
According to the Korea Trade Statistics Promotion Institute, the total value of overseas reverse direct purchases in 2023 was 1.65 trillion KRW, with 228.1 billion KRW from the US, 226.7 billion KRW from Japan, and 90.8 billion KRW from the Asian market. As the reverse direct purchase market is expected to grow further, collaboration between CJ Logistics and global logistics partners is anticipated to significantly reduce logistics costs compared to using traditional international express services.
CJ Logistics is providing more convenient logistics services to e-commerce consumers and sellers in high-demand markets for overseas direct purchases. By collaborating with local logistics companies, leveraging an extensive global network and infrastructure, and creating synergies with the forwarding business, CJ Logistics is leading the reverse direct purchase and cross-border logistics market.
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