CJ NowCJ Logistics’ delivery of overseas direct purchases grows 2.5 times with 6.53 million boxes delivered in 1st Half of the year
In the first half of this year, CJ Logistics posted a volume of delivery of overseas direct purchases that was 2.5 times higher year on year. Analysis showed that this growth resulted from growing interest in health, restrictions on overseas travel, and the growing number of new customers thanks to the superior capabilities of overseas direct purchase services.
An increase in functional food orders by 40% and a reduction in overseas travel demand - Growing number of customers thanks to the differentiated services
▶ The forwarding process for overseas direct purchases is under way at the CJ Logistics ICC Center, a logistics center dedicated to overseas direct purchases, located within the Free Trade Complex of the Incheon International Airport.
CJ Logistics said on the 27th that in the first half of this year, the volume of its delivery of overseas direct purchases rose by 2.5 times the amount year on year. An overseas direct purchase refers to a purchase of an overseas product made by a domestic consumer directly from an overseas online shopping mall or via an agency.
The volume of overseas direct purchases delivered by CJ Logistics from January through to June this year was 6.53 million boxes, up 2.5 times from 2.66 million year on year.
Products brought into Korea through overseas direct purchase are mostly functional foods, clothes, home electronics and accessories. Of these purchases, health-related items, such as vitamins, supplements, and functional foods, showed the largest increase, about 40% from a year earlier. Also, some items that previously recorded large volumes even before COVID-19, such as home electronics and clothes, also showed a slight increase.
It is understood that the raised interest in immunity and health due to the COVID-19 pandemic led to the increase in health-related item orders. For example, the Daily Life Report CJ Logistics published based on analysis of big data on domestic delivery volumes shows that the volume of immune booster products, such as red ginseng, multivitamin and propolis products, in 2020 rose by 46% compared to 2019.
It is also estimated that restrictions on overseas travel due to COVID-19 lead to the increase in online purchases.
For the exporting countries of overseas direct purchases, the United States represents about 90%, followed by China and Japan.
The country from which consumers ordered products the most was the United States representing about 90%, followed by China (5%) and Japan (2%). Other countries include Singapore, India, the United Kingdom, Germany, France, Canada, and Australia.
As the No.1 deliverer of overseas direct purchases based on the annual volume of delivery, CJ Logistics operates its own ICC (Inbound Custom Clearance) center dedicated to overseas direct purchase freight within the Free Trade Complex of the Incheon International Airport. This center is as large as four soccer stadiums with a site area of 28,428m2, and is equipped with cutting-edge logistics equipment, including high speed X-ray equipment for self-clearance and a cross-belt type auto sorter. With a same day clearance rate of over 99%, CJ Logistics offers fast customs clearance and delivery of overseas direct purchases. Based on its differentiated service operation capabilities and cutting-edge equipment, the company is continuously gaining new customers and increasing volume of delivery.
In overseas direct purchase, if a consumer buys a product at a purchase agency site or an overseas online shopping mall, an international logistics company partnering with the seller goes through the process of local delivery and clearance, air transport and domestic clearance on behalf of the consumer and then delivers the product.
CJ Logistics offers a Cross Border E-Commerce fulfillment service. Cross Border E-Commerce fulfillment provides storage, clearance and delivery services, plus other services, for e-commerce products ordered by consumers across borders.
For overseas direct purchase, CJ Logistics has modularized the entire process of logistics and can provide a wide range of optimized services to customers, providing the entire process from local product collection to domestic delivery or even just part of the process depending on the request of the customer.
“By providing differentiated services based on cutting-edge technologies, including big data and AI, as well as our global infrastructure with 279 operation bases in 40 countries around the world, we will further expand our Cross Border E-Commerce fulfillment service,” said a source from CJ Logistics.