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4PX Express has grown into China’s biggest cross border ecommerce platform, reports Singapore Straits Times.

The logistics platform helps merchants such as AliExpress, TaoBao, eBay and Newegg to get their goods delivered to customers across the world.

In terms of scale, 4PX is twice the size of the #2 and #3 players in China combined.

As China’s ecommerce boom spreads to other parts of the world, outbound volumes have spiked over the last two years, with 4PX founder Kevin Li predicting that the market will grow at least 80% each year for the next few years.

Approximately 40% of shipments handled by 4PX are bound for shoppers in the United States, Russia and followed by Brazil. Shoppers in the UK, Germany, Spain and France count for another 40-45% of overseas shipments.

As Li puts bluntly, “the world economy is not good, but foreigners like online shopping.”

4PX turns an annual profit of approximately $101.1 million (50 million yuan) and employs 3,500 people across 50 centers in China and 17 overseas.

As the items sold by Chinese sellers grow in value, the company plans to expand its network of overseas warehouses, where sellers’ inventory is sorted, packed, consolidated and shipped out. It also aims to be the biggest Chinese employer in the Czech Republic, with a promise to add 600 jobs over five years as it serves Western Europe with a warehouse there.

4PX’s big name investors 

The company closed its latest investment round last month, with Alibaba’s logistics arm Cainiao injecting an undisclosed sum into the firm for a 15% stake.

SingPost is an early investor, with roughly 30% share in the company. The partnership goes back to 2008, when 4PX first identified opportunities in cross border ecommerce. During that time, online sales were booming, but the parcel service industry lagged behind.

The sellers were new, they didn’t know how to sell and choose a logistics company. DHL and FedEx did professional fulfillment but were focused on the business-to-business segment. – Kevin Li, Founder of 4PX Express

From that, 4PX started to build a complete product line for parcel services, and SingPost became its first postal partner outside of China. Small parcels from China would be routed to Singapore and sent out to various countries across the world from there.

Li expects his company’s margins to fall as the ecommerce sector matures, but this shouldn’t be a cause for concern. “We are an integrator of different firms’ solutions. We exist because of our technology”.

A version of this appeared in The Straits Times on August 14. Read the full version here.

China Post Group, China’s state owned postal service provider and Lazada Group have entered a strategic agreement to enhance cross-border logistics solutions for Chinese sellers on the ecommerce platform, reports Yahoo Finance.

The collaboration will simplify the cross-border processes for Chinese sellers who want to expand their consumer market to the Southeast Asian region.

By specifically targeting Chinese sellers who wish to deliver lighter parcels, this partnership could trim down certain logistics costs for smaller merchants on Lazada and simplify the cross-border delivery process.

The partnership will also see the two companies collaborating on enhancing current delivery options for merchants selling small and light items. The companies hope to develop financial solutions such as micro-credit loans and online payment options for logistics fees.

Both China Post Group and Lazada have also expressed an interest in collaborating to find cross-border warehousing solutions, providing logistics training and seller-on boarding in the long term.

As Lazada looks to attract more brands and online merchants in the Southeast Asian region to bring a wider product assortment to consumers, China Post’s extensive network in the region will enhance the cross border partnership.

A version of this appeared in Yahoo Finance on July 12. Read the full version here.