Alibaba’s USPS deal for faster delivery to USA

China to USAlibaba have set up an agreement with the United States Postal Service (USPS) to speed delivery of merchandise ordered by consumers in the USA on Alibaba’s international online shopping platforms.

Under a “Memorandum of Understanding” announced today, Cainiao, Alibaba’s logistics affiliate and USPS agreed to collaborate on the development of enhanced shipping solutions for cross-border e-commerce. In addition to helping provide more efficient shipping channels into the US for Chinese merchants and manufacturers selling on Alibaba’s AliExpress global-shopping website, USPS will also work with Cainiao to expand its worldwide shipping capabilities, especially in South America.

Alibaba have already been working with several national mail carriers including Singapore Post and Spanish Post with the aim of reducing barriers to shipping small parcels quickly on a global scale.

There is little doubt that Chinese retailers are eyeing up the west hungry to start carving a slice of the ecommerce pie for themselves. It’s unlikely to be welcomed by online retailers this side of the world who already see increasing competition on marketplaces from Chinese sellers but the reality is that the world is changing and competition is here to stay. The question is how do you compete, especially when the one big barrier for Chinese sellers, the postage cost and transit times, is removed?