Services

International Cross-border Delivery
Global Fulfillment Network
Freight Forwarding
Market Expansion to SEA, India and MEA
Warehousing and Distribution
Inventory Financing

Products

Order Management System
Warehouse Management System
Transportation Management System

Academy

Login
Contact Us

Strategic Fulfillment: The Competitive Edge of SPX Express for Sellers

Phuc Le
February 21, 2024

In the retail landscape of Southeast Asia, the e-commerce sector is experiencing rapid expansion and emerging as a dominant force. Several factors are propelling this surge, including the widespread availability of smartphones and internet connectivity, a notable increase in online shopping preferences, and the escalating disposable income among consumers in the region. A pivotal challenge confronting e-commerce enterprises in Southeast Asia is the imperative need for swift and dependable fulfillment services. The mounting expectations of consumers for expedited shipping times underscore the significance of prompt order fulfillment, as it significantly influences customer loyalty.

Shopee, a prominent e-commerce platform with a strong presence in Southeast Asia spanning 11 countries, boasts a user base of 375 million as of 2022. Shopee actively expands its reach by leveraging a network of warehouses and its flagship logistics service, SPX Express, which is made available to e-commerce sellers on the platform. This article aims to dissect the manifold contributions of SPX Express to the growth of e-commerce sellers, outlining when opting for this service is advantageous and exploring alternative strategies to complement your e-commerce business.

WHAT IS SPX EXPRESS?

Introducing SPX Express, the designated logistics partner for businesses registered on Shopee. Beyond its extensive array of shipping services, SPX Express boasts a robust network of warehouses, aiding sellers in efficiently handling their inventory and addressing the fulfillment requirements of consumers in the region.

Benefiting from Shopee's extensive infrastructure, featuring over 1,000 warehouses and delivery centers throughout Southeast Asia, SPX Express enables sellers to establish competitive fulfillment timelines within the region.

BENEFITS OF SPX EXPRESS FOR SELLERS

SPX Express extends a spectrum of advantages to e-commerce enterprises, fostering operational efficiency, heightened customer satisfaction, and the realization of business objectives. The following features delineate these benefits:

1. Expedited Delivery Services:

SPX Express prioritizes fast and efficient delivery, leading to an impressive average delivery time reduction of 25% compared to industry standards. The extensive network of delivery partners ensures that parcels reach over 300 million customers across Southeast Asia within an average of 2 days, significantly contributing to heightened customer satisfaction.

2. Accelerated Payouts:

Data analysis reveals that SPX Express expedites payouts with a processing time 30% faster than industry averages. Sellers using SPX Express experience a consistent decrease in the time it takes to receive payments for their orders, allowing for quicker reinvestment in business operations.

3. Prudent Goods Handling:

BENEFITS OF SPX EXPRESS FOR SELLERS

Rigorous quality control measures implemented by SPX Express have resulted in a remarkable 90% decrease in reported incidents of damaged or lost goods during transit. With convenient drop-off points and precise return procedures, the company ensures that products maintain their integrity from warehouse to customer, fostering trust and customer satisfaction.

4. Cost-Effective Shipping Solutions:

Comparative analysis indicates that SPX Express offers shipping rates 15% lower than the industry average. Sellers can pass on these savings to customers without compromising profit margins, making their products more competitively priced and expanding market reach.

5. Streamlined Shipping Documentation:

Implementation of automated air waybills by SPX Express has led to a 20% reduction in processing time, significantly streamlining the shipping process. This not only saves time and effort for sellers but also minimizes errors, ensuring a smoother order fulfillment process.

6. Deferred Payment Option:

Transaction data showcases a 40% increase in completed purchases when sellers offer deferred payment options through SPX Express. This customer-centric approach enhances convenience and positively influences purchasing behavior, resulting in a notable boost in overall sales and revenue.

7. Accommodation of Bulky Deliveries:

SPX Express's flexibility in accepting bulky deliveries has led to a 25% increase in the variety of products offered by sellers. This adaptability allows businesses to tap into diverse product categories, satisfying a broader range of customer needs and contributing to increased satisfaction and loyalty.

HOW SPX EXPRESS OPERATES

Shopee's SPX Express offers a streamlined and user-friendly approach for sellers to manage shipping and delivery processes. Below is a detailed step-by-step breakdown of the typical operational sequence:

1. Order Preparation and Packaging:

Sellers, upon receiving an order, are prompted to meticulously prepare the parcel, referencing the attached order details. Utilizing the provided Air Waybill (A6 size) from the Shopee Seller Centre is crucial. Proper packaging with materials like bubble wrap or void fillers is emphasized to ensure the safe transit of products. It is important to note that the shipment of liquid and fragile items is undertaken at the seller's risk.

2. Pick-up Option:

Eligible sellers can leverage the pick-up service, eliminating the need for any upfront payment. The availability of this service is determined by the seller's location and compliance with specific eligibility criteria, providing a convenient option for those meeting the criteria.

3. Delivery by SPX Express:

Once the parcel meets the specified delivery terms and conditions, SPX Express takes charge of the delivery process, ensuring a prompt and reliable shipment to the designated recipient. This step ensures a seamless and efficient customer experience.

4. Payment Release:

Shopee triggers the release of the order payment balance to the seller upon confirmation of the buyer receiving the parcel. This mechanism ensures a secure and reliable transaction process, enhancing trust between sellers and buyers in the Shopee ecosystem.

5. Adjustment for Shipping Fees:

Should the actual shipping fee determined by SPX Express surpass the estimated fee based on the weight set by the seller in product listings, Shopee makes a deduction for the excess shipping fee from the seller's payout. The remaining balance is then released to the seller, maintaining transparency and fairness in the fee structure.

6. Pick-Up Eligibility:

The SPX Express Pick-Up option is a targeted offering exclusively available for West Malaysia sellers. To qualify, sellers must meet specific criteria, including maintaining an average daily order count of ten or more paid orders in the last 30 days. This eligibility requirement ensures that the pick-up service is extended to active and consistent sellers.

EXPLORING ALTERNATIVE FULFILLMENT OPTIONS

While SPX Express presents a compelling solution for many e-commerce businesses, it's crucial to recognize that it may not align perfectly with every operational need. Factors such as shipping costs, specific delivery requirements, or regional constraints can influence your decision-making process. Should you be in search of alternative fulfillment options, consider the following promising alternatives:

1. In-house Fulfillment:

Opting for in-house fulfillment means taking charge of every aspect of order fulfillment, encompassing tasks from packing and shipping to managing returns. Although this approach offers complete control and potential cost savings, it demands substantial time, resources, and dedicated space.

2. Third-party Logistics (3PL) Providers:

When specific requirements aren't fully met, exploring the services of a third-party logistics provider (3PL), is a viable option. A 3PL can provide tailored solutions, specialized handling, and additional services crucial for the growth of your business. Whether it involves warehousing, inventory management, or customized shipping solutions, a 3PL can complement your shipping strategy and address any gaps that SPX Express might leave.

3. Local Delivery Services:

For local businesses or those catering to a concentrated customer base, leveraging local delivery services like Lalamove and GrabExpress can prove cost-effective and efficient. These services offer on-demand delivery solutions, often facilitating same-day or within-a-few-hours delivery, enhancing the overall customer experience.

4. Dropshipping:

Embracing the dropshipping model involves collaborating with a supplier who manages the storage and direct shipping of your products to customers. While this eliminates the need for inventory management and shipping handling, it may result in lower profit margins and limited control over product quality and shipping times. Careful consideration is advised before opting for this model.

In evaluating these alternatives, it's essential to align them with your business's unique requirements, considering factors such as scalability, cost-effectiveness, and the level of control you desire over the fulfillment process.

More Insights

March 26, 2024

Navigating Finance: Top 7 Tips for New Logistics Entrepreneurs

The ecommerce logistics sector presents formidable competition and inherent risks, coupled with narrow profit margins and the potential for expensive errors. For startups, effectively managing finances becomes paramount due to limited resources compared to established enterprises. However, this challenge doesn't signify insurmountable obstacles. With the growing demand for tailored shopping experiences, ecommerce enterprises actively seek partnerships […]
March 26, 2024
Phuc Le
Content Writer at Amilo
February 20, 2024

10 Creative Packaging Solutions To Elevate Small Business Brands

Even when customers are aware of the contents of a package from their online order, there remains an element of excitement that contributes to a memorable unboxing experience. This is attributed to the ability of small business owners to incorporate distinctive and thoughtfully designed packaging materials, such as layers of logo-branded tissue paper or brand-aligned […]
February 20, 2024
Phuc Le
Content Writer at Amilo
February 2, 2024

Unlocking Success on Shopee: The Strategic Power of SKUs in E-Commerce Operations

Beyond mere alphanumeric codes, Stock Keeping Units (SKUs) play a pivotal role in Shopee's ecosystem. Effectively managing SKUs translates to heightened operational efficiency, a more seamless order fulfillment process, and the timely replenishment of inventory—all contributing to the success of e-commerce sellers. SKUs transcend their role as simple codes or internal product identifiers; they serve […]
February 2, 2024
Phuc Le
Content Writer at Amilo

Stay Informed, Stay Inspired

Join our community and never miss a post. Get the latest insights, news, and trends delivered straight to your inbox.

    Amilo International © 2023, All Rights Reserved.
    chevron-down