Logistics Deal Opens South America To Chinese Goods

South American e-commerce buyers seeking faster shipping and more options from Chinese sellers may be smiling after a new deal was announced last week.

Alibaba's logistics affiliate Cainiao and the United States Postal Service have signed a memorandum of understanding to develop new international shipping solutions and enhance the logistics-service experience for both sellers and buyers involved in cross-border e-commerce. Through the MOU, Cainiao and the USPS agreed to work together to speed delivery of merchandise sold through Alibaba's AliExpress.com to consumers in the United States. The USPS will also collaborate with Cainiao to help expand the latter's delivery networks worldwide, especially in South America.

The collaboration between Cainiao and the USPS seeks to capitalize on growing opportunities in cross-border e-commerce between China and America by making it easier and more efficient for Chinese companies to sell and deliver goods directly to U.S. consumers.

USPS is the leading postal and shipping service provider in the United States. The country's national mail carrier, the USPS has more than 600,000 employees and delivered more than 155 billion pieces of mail in 2014, generating nearly USD68 billion in revenue.

Cainiao and the USPS are aiming to develop an integrated e-commerce solution that provides full access to the U.S. domestic market and neighboring countries, the MOU states. The solution will be designed to reflect the demands of customers and the capabilities of shipping partners to improve the way goods purchased from China are processed, handled, and delivered in the United States and potentially South American markets.

The collaboration is a key component of Alibaba's globalization strategy and ambition to provide high quality e-commerce services to consumers across the globe.

Financial terms of the MOU were not released.