Cash-on-delivery service launched by DHL eCommerce

DHL eCommerce has launched a cross-border cash-on-delivery service for Southeast Asian customers.

The service will allow sellers in China and Australia to target consumers in Malaysia, Thailand and Vietnam who do not have credit cards or even a bank account – an estimated 73 per cent of the region’s population. It enables cash collection from buyers in these regions upon delivery.

Collected cash will be remitted to a local bank account at the destination or the billing country based on the local destination currency. Remittance will be made to sellers every fortnight and tracking visibility of the status of COD is available on the DHL portal.

CEO of DHL eCommerce Charles Brewer said that despite growing credit card adoption in Southeast Asia, the low level of credit card penetration has forced e-commerce retailers to offer alternative modes of payment methods such as cash on delivery, digital payments and in some cases paying in-store.

“This opens up a huge potential by reaching out to a new group of unbanked consumers and also meeting the needs of consumers who prefer to pay in cash.

“China and Australia are huge e-commerce export markets and our DHL Parcel International Direct product provides a direct entry into high demand markets with excellent transit times of three-to-five business days with economical shipping prices. With our fully-owned domestic delivery network in Malaysia, Thailand and Vietnam, we are able to deliver on-time with secure features like cash-on-delivery.”

CEO of DHL eCommerce’s new Vietnamese partner Sendo, Tran Hai Linh, added: “Being a home-grown company allows Sendo to have a deep understanding of the Vietnamese local market and culture. Sendo aims to support over 300,000 individual vendors, micro-entrepreneurs, and small businesses to sell their goods online and deliver them affordably throughout Vietnam. With our collaboration with DHL eCommerce, we will provide not only the sellers but also several million buyers on our platform with an international quality delivery experience in Vietnam.”

DHL operates more than 300 ServicePoints across Vietnam accessible to Sendo, meaning buyers can choose to have their parcels dropped off at these locations instead of waiting for a pick-up and enjoy discounts of up to 20 per cent.

DHL eCommerce Vietnam’s MD Thomas Harris said Micro, small, and medium-sized enterprises continue to play a major role in Vietnam, accounting for 98 per cent of all enterprises, 40 per cent of GDP and 50 per cent of employment.

“However, they face unique challenges such as access to finance and international partners. DHL is passionate about supporting small businesses and we are excited to work with Sendo to support their sellers with an excellent, high quality domestic delivery network.”

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