At a time when innovation in logistics is a non-negotiable, Cainiao is pushing the boundaries of what is possible using cutting-edge technology.

The vision of Alibaba’s commercial ecosystem can be thought of like a family of businesses living under a digital roof. Taobao and Tmall are providing the platforms for brands and consumers to transact and interact. While Cainiao manages the logistics infrastructure so essential to an efficient ecommerce experience.

Improving the flow of goods

To make logistics a competitive advantage for Alibaba’s ecosystem, Cainiao recently made a round of investments, the aims of which are three-fold:

  1. Increase the number of chartered flights from 260 to 1,260 to reduce air-freight times from 7-10 to 3-5 days.
  2. Double the floor space of Cainiao’s overseas warehouses from one million square meters to over two million to allow more brands to stock goods closer to their buyers abroad.
  3. Digitalize the last mile of delivery through the opening of 30,000 new Cainiao Post stations across 100 cities in China, outfitted to facilitate the contactless shipment and collection of packages.

“Logistics is no longer an afterthought. Today, logistics has become a game-changer and key differentiator that sets one business apart from another,” said Lin Wan, President of Cainiao.

Make it easy to do business anywhere

The impact of the Cainiao investments will benefit a range of stakeholders. One is overseas brands selling to China, where a growing number of export warehouses abroad, paired with Cainiao’s digitalized customs clearance procedure, are enabling the processing of a vast volume of goods each day. Another is small- and medium-enterprises in China, who are experiencing a greater capacity to sell abroad. Across 100 cities in China, Cainiao is able to deliver 90% of cross-border orders within 72 hours, increasing the reach of domestic sellers to foreign markets.

Finally, consumers. The investments Cainiao is making are ultimately to make the consumer experience shopping on Taobao and Tmall just that much more enjoyable. Faster and more frictionless logistics means consumers can enjoy their purchases sooner and with greater convenience.