Alibaba inks deal with US Postal Service as China's e-commerce juggernaut sticks to global expansion script amid domestic slowdown
In a memorandum of understanding announced on Wednesday, Cainiao and USPS agreed to collaborate on speeding up the delivery of merchandise bought by consumers across North and South America from AliExpress, the global online shopping platform of Alibaba.
"As cross-border e-commerce grows rapidly, it is critical that we evolve shipping services to the next level, with shorter delivery times and easier methods to track a shipment," Cainiao vice-president Wan Lin said.
"Today’s announcement is a key part of Alibaba’s globalisation strategy, and our vision to enable consumers around the world to enjoy the convenience and benefits of e-commerce."
Alibaba had earlier forged cooperation agreements with Singapore Post and the Spanish postal service.
In cross-border e-commerce, online shoppers purchase goods directly from overseas merchants and manufacturers who ship their orders straight to consumers’ homes.
The global business-to-consumer, cross-border e-commerce market is forecast to reach US$1 trillion in 2020, up from US$230 billion last year, according to data from professional consulting firm Accenture and AliResearch, the research unit of Alibaba.
National carrier USPS, which has more than 600,000 employees, delivered more than 155 billion pieces of mail last year and generated nearly US$68 billion in revenue.