The stage is set: SingPost unveils completed site for end-to-end e-commerce logistics services

The potential Alibaba JV remains a key catalyst.

It’s all systems go for SingPost’s s end-to-end suite of e-commerce logistics services, which will enable the Postman to provide a full range of services from front-end solutions such as website design to back-end services including warehousing and last-mile delivery.

According to CIMB, a recent site tour showed that the groundwork is firmly in place for SingPost. The Postman’s system and cheap rates allow it to capture a wider audience, from multinational brands set on creating standalone online retail presence, known as a monobrand channel, to SMEs that want to list their products on an online marketplace, or a multibrand channel.

“SingPost offers end-to-end ecommerce logistics solutions, ranging from front-end services such as marketing, payments, customer service and website design, to more traditional back-end warehousing and last-mile delivery capabilities. Adidas is one of the customers that engages SingPost in the full suite of solutions, while other names including Zalora, Canon, Toshiba and Philips engage SingPost in a majority of the services” notes CIMB.

Here’s more from the report:

SingPost views the monobrand segment as a key growth area, given that consumers trust brands’ official websites more than online marketplaces, especially in less ecommerce-ready markets like Indonesia.

Moreover, with the exception of website design, the infrastructure and systems needed to run an ecommerce operation for each brand are the same, thus making it highly scalable. 

As logistics is a volume game, we think that SingPost needs to ramp up order flow to capture efficiency gains and keep its pricing competitive. 

Order flow is limited by customer acquisitions, which have shown promising signs (doubled from 300 to 600 ecommerce customers as at end-FY14) but still need to expand more rapidly. A potential tie-up with Alibaba could bring in bigger volumes, not only through Alibaba’s expansion into ASEAN, but also a global ecommerce logistics platform that will be made available to third-party users.