Leap from snail mail to online business

Leap from snail mail to online business

SINGAPORE - As the delivery of old-fashioned letters wanes, SingPost has managed to tap effectively into the lucrative and fast-growing e-commerce market.

It now has more than 200 corporate customers using its e-commerce services to manage online payments, deliveries or to offer online shopping to consumers.

In its last financial year ended March 31, e-commerce accounted for 25 per cent of its total revenue of $658.8 million, said Mr Marcelo Wesseler, SingPost's senior vice-president for eCommerce.

No figures were available from the previous year as the business unit had not been formed.

"Global retailers rely on us to store, pack and deliver millions of parcels every day. Our customers come from 220 countries and territories," he told The Straits Times on Tuesday.

To support customers, SingPost has 12 distribution centres across Asia, including Australia, Japan and India as well as two other centres in Portland, Oregon, in the United States and Egham, Surrey, in England.

SingPost is getting into the e-commerce business as online shopping explodes, while its domestic mail business declines.

In an e-mail interview, SingPost group chief executive Wolfgang Baier said that e-commerce sales in the Asia-Pacific last year hit US$332 billion (S$416 billion) and it is expected to grow by 30 per cent this year.

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