The first official account of this article: Middle East Cross-border E-commerce Exchange, ID: EMEDubai, search and follow to get more good articles
The vigorous development of global e-commerce, due to the epidemic and further development, led to Saudi Arabia The number of local parcels delivered daily has increased dramatically. Customers’ expectations for fast delivery have also continued to increase, making the company have to deal with delivery challenges.
The last mile is the most expensive and time-consuming part of the transportation process, and most e-commerce retailers in Saudi Arabia are struggling with this. Low delivery rates and difficult cash on delivery are many obstacles facing the industry.
However, a startup company based in Jeddah claims to be able to solve the problem. Saee is a technology logistics, last-mile delivery company in Saudi Arabia, aiming to introduce new concepts to the local market.
This start-up company helps increase the company’s success rate and increase the profitability of companies and individuals, while reducing the need for expensive overhead costs (such as cars and couriers).
Saee co-founder Tariq Alturkestani told Arab News: “The most important thing for retail, e-commerce customers to expect last-mile shipping companies is a high success rate and fast refunds."
Saee was established with the support of King Abdullah University of Science and Technology. It is a local solution for the Saudi e-commerce platform. It provides professional services designed to meet the needs of retailers, such as ensuring fast cash on delivery, facilitating smart and flexible delivery to freelancers, active customer service and warehouse management.
Online retail companies are using cash on delivery services to win the trust of customers and encourage them to try new products. However, their associated costs are high. In a country, about 95% of the packages are sent through this service, which increases the cost.
Saee co-founder Nasir told Arab News: "I believe there is a huge problem in e-commerce, called cash on delivery. ". "End users or buyers are not obliged to take away anything they choose from the Internet.
" Therefore, the successful delivery rate is 70%; because the customer only receives seven out of ten shipments; this This means that the e-commerce retailer will bear about 30% of the cost without actual revenue profits. "
The problem of cash on delivery, on the other hand, is the slow cash flow, especially for small and medium-sized enterprises. "As an e-commerce platform, this cycle means that I should send the goods and deliver them, and then It takes 10 to 20 days to receive the money, transfer it, and then deposit it into my account. Therefore, in the best case, we are talking about a 20-day cash gap. But this usually takes three months. Nasir said.
One of Saee’s solutions to this problem is the concept of cash before delivery (CBD). He added: “We do The proportion of cash to customers is small, just to bear the cost. "
"We transfer money for customers every week. We have a dedicated team and internally developed technology to continuously provide customers with the latest reports. "
Saee uses the kingdom’s 13 dispatch centers to provide last-mile cargo in more than 120 cities and towns, and is working to further expand its coverage. Alturkestani said: "By the end of this year, we hope Cover the entire kingdom. "
Another factor that distinguishes Saee from other companies in the field is that it relies on a team of freelancers, which means it can only recruit couriers based on demand.
"During the peak seasons such as the last Ramadan, we shipped an average of about 5,000 cargoes across the Kingdom every day. During this time, we shipped about 12,000 boxes every day, and the success rate was about 80% to 85% of the received packages. "He added.
During the epidemic lockdown, freight companies scrambled to meet the growing demand for residential deliveries, especially with the implementation of many mandatory controls and security agreements. However, Alturkestani Said that given the ease of expansion of their business model, they were able to complete the scheduling time.
He added: “During Black Friday, we hope to reach 15,000 shipments per day. "
According to Alturkestani, the company’s flexible model and one of the companies with the highest delivery success rate in Saudi Arabia make large e-commerce companies prefer Saee to other leading express companies in Saudi Arabia.p>
The company's business model frees Saee from having to pay for couriers, gasoline and vehicle insurance, and can avoid the most serious impact of the off-season financial decline. At the same time, it provides customers with more effective solutions to meet their needs , And provide local residents with opportunities to increase their income.
Saee’s team of freelancers can ensure that customers get better performance; agents are not obligated to work within a specific time frame and deliver a certain amount of goods every day, so they have less pressure and have time to concentrate.
Nasir said: "The average shipment with other companies has increased from 50 to 90 or even 100, of which our agents delivered about 20 (shipments). "
The 9/10th cooperation accelerator program between King Abdullah University of Science and Technology and Saudi Human Resources Development Fund enables Nasir and Alturkestani to meet and start cooperation in 2016.
The company first reduced the unemployment rate of women in Saudi Arabia by carpooling women to work, and was subsidized by the government program Wusool. However, after a royal decree allowed women to drive, Saee gradually changed its model and began distributing e-commerce Parcel.
Saee began to cooperate with large companies in Saudi Arabia, and after increasing its visibility, began to target small companies that provide services that meet their needs.
"We just launched two service offerings for small businesses, even those that only ship once a month. We hope to provide them with more choices and create influence. "Nasir said.
He believes that the company has great potential to bring changes and provide solutions to Saudi Arabia's cash on delivery market. "Who knows, maybe later? We hope to become the largest company in e-commerce transportation within five years. "
At the end of the article, Jollychic has worked with this express company.