Blockchain-powered parcel network, ParcelX, announced the launch of its service platform in beta version today. It is the world’s first and also the only cross-border functional parcel delivery platform to date that offers e-commerce and delivery service providers several autonomous collaborative services such as real-time sign-in and online interactivity.
The ParcelX team developed a user friendly service interface for traditional logistics service providers. From the perspective of the logistics services providers, the collaboration with ParcelX is akin to working with a traditional logistics service, but without additional technical thresholds and complex processes. It is now simpler to fully access the open ParcelX cross-border parcel collaborative distribution network based on blockchain trust at zero cost, as well as enjoy more efficient service integration, settlement support and fairer service value realisation.
On the ParcelX service platform, sellers (e-commerce retailers) can choose the best service provider, as well as the fastest, most economical delivery route. While lowering their delivery costs, it also guarantees the timeliness and high quality of the delivery services.
In view of the difficulties in tracking the parcels and obtaining timely information during the whole process, ParcelX’s cross border parcel delivery network will connect shippers, logistics service providers, logistics integrators and consumers in a well-balanced ecosystem, based on trust guaranteed by blockchain and seamless interactions which ensure optimal security, transparency and traceability of delivery package information.
According to data from McKinsey & Company, the Asia-Pacific region is the largest buyer of cross-border goods. Its market value is expected to grow from USD 71 billion in 2014 to USD 476 billion in 2020. China alone takes 34% of the global parcel volume. Its rising middle class, seeking high-quality and international products, is driving an explosion of e-retailers, logistics providers, and delivery brokers with accompanying services.
From 2016 to 2018, the market value for China’s cross-border e-commerce is expected to increase from RMB 1.01 trillion to RMB 8.8 trillion. The cross-border parcel deliveries are also expected to soar from 557 million to 928 million with a growth rate of 60%.
China’s government has also introduced numerous policies to encourage growth of this industry, with the Ministry of Commerce tallying over 5,000 cross-border e-retail platforms and over 200,000 enterprises conducting this business. One Belt One Road and its associated investments, policies and strategic mandates are also driving this industry’s growth. Despite the various exciting figures, the e-commerce retailers are still complaining while the delivery service providers are sometimes rendered helpless.
In fact, the data has revealed that the domestic cross border e-commerce consumer complaints was 12.98% of the total number of complaints in 2017, increasing 1.37% year-on-year. Among them, logistics shortcoming is one of the more important consumer issues. The parcel delivery problem takes up as high as 21%. The long-standing problems should come to an end soon. As an innovative third-generation logistics service provider, the cross-border parcel delivery network of ParcelX is based on the blockchain technology which can establish a decentralised, highly effective cross-border parcel delivery ecosystem to resolve these fundamental issues.
“This system has three main features. One is a simple interface – concise code docking and a one-click local deployment (optional) are more than sufficient to participate in the cross-border, parcel delivery joint distribution and network of ParcelX. Second is machine trust. Through the use of smart contracts, core terms of the collaboration such as service details, quality and price are agreed upon securely and digitally – trust need not solely be placed on the traditional, easily-tampered corporate contracts. Third is the settlement in local currencies. Participating logistics service providers will just need to focus on improving their services and collecting their payments locally. They do not have to worry about cross-border supervision and forex risks pertaining to cross-border services.”
“Therefore, the vision of ParcelX is to build an open, transparent, beneficial and healthy ecosystem. The system can incentivise excellent service providers with more parcel orders and corresponding settlement rewards. On the contrary, service providers who do not meet the required service levels will be subject to corresponding penalties. Progressively, ParcelX will naturally eliminate those uncompetitive service providers. So, the good ones remain – service providers who can scale and are cost-effective.”
“If this new model can really resolve one or two pain points, it is definitely worth a try. We can even consider to include it as a feature of our services for e-commerce.”
ParcelX also successfully completed its ICO today. Next up, it will launch a series of activities to build and improve the ecosystem which includes promotions for the popular token sale. From November, 1st, 2018, traditional logistics service providers can log on to ParcelX platform to perform simple coding on the interface in advance. This platform currently supports four different languages namely Chinese, English, Japanese and Korean.
Mr. Guo added: “At the end of October, our team completed the first phase of the beta version of the ParcelX platform. At the same time, we will make updates based on user feedback bimonthly or monthly. I believe that the second phase will have more powerful features.”