Source: BGF Retail

 

[Alpha Biz= Paul Lee] BGF Retail has temporarily suspended the “half-price delivery” service to Japan introduced by its convenience store chain CU, just four months after its launch, as shipment delays and returns increased due to customs clearance issues in Japan.

According to industry sources on March 5, CU will suspend the Japan-bound delivery service starting March 6. The company will process shipments only for packages accepted by 3 p.m. on March 4.

The service was launched in November last year as the first of its kind in the convenience store industry, targeting growing demand for reverse direct shipping (overseas delivery from Korea to foreign consumers) to Japan.

Demand for such shipments has been rising steadily. Of the roughly 61 million reverse direct shipping transactions recorded between January and August last year, about 33.7 million shipments were destined for Japan, accounting for the largest share.

The service was expected to attract a wide range of users, including small online merchants operating open-market stores, families and acquaintances of Korean students studying in Japan, and tourists sending purchases back to Japan after visiting Korea.

However, during the four months of operation, shipments frequently faced strict customs procedures in Japan, resulting in longer delivery times than expected or packages being returned.

The problems led to growing customer complaints and stagnant usage levels.

As a result, CU decided to terminate its partnership with logistics startup STL, which had been responsible for operating the service, and instead search for a more experienced logistics partner while overhauling the service.

Previously, CU had promoted the collaboration with STL as a way to minimize margins by reducing unnecessary marketing and operational costs, but operational limitations emerged during the service rollout.

With the company now needing to identify a new partner, industry observers expect it may take considerable time before the Japan half-price delivery service resumes.

 

 

 

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