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Perak & Penang Cross-Border 3PL Guy

November 30, 2018

     This is the Guy, Jabez. He is the Ipoh hero who will kaotim all our logistics need in Perak and Penang for our cross-border eCommerce.   

 

    Ask any new eCommerce seller, most will tell you that always their biggest headache was shipping the products to the customer in overseas, known as 3PL (3rd Party Logistics)

 

     One thing local marketplaces did right. They helped sellers deal with 3PLs. They consolidated thousands of sellers in their platforms, and negotiated a standard price which is very affordable. Even if you are a seller which sell and send 1 parcel a year, your rates are similar with sellers which send hundreds parcel a day! Thus the boom of local eCommerce in Malaysia.

 

    But the scenario is different in International eCommerce. In the summary, there will be different rates base on your Shipping Quantities. Let us tell you our experience.

 

     KK started to search for rates online for “Shipping Rates Malaysia to US”.  Attach the result and the link.

 

FEDEX Link 

DHL Link 

Aramex Link

GDEX Link

POS Malaysia:

   

      For a new Malaysia product sellers to look at this rate, it will scare them from continuing on business to consumer (B2C) cross-border eCommerce. But then this is normal rate with the assumption that you are going to only ship 1 parcel. 

 

    A new cross-border seller in Malaysia is at a huge disadvantage in this rate, compare to established sellers or China sellers if they just search online. Logically, they will rather do the traditional offline business to business (B2B) bulk selling thru sea-freight. Check out this Blog about your China competitor strength. 

 

     We knew we must find a solution for this. We started by reaching out to 3PL and informed them that we wanted to start selling cross-border from Malaysia and requested a business account with them.

 

     All of them asked this question.

 

     “How many parcels are you shipping a month?”

 

     This is a question you must answer. We informed them we are just starting and hope to get 100 parcels per month in the future. We got a rate better than above rates but it still not enough. Should we encourage new sellers to inflate the volume to get better rates? We don’t think this is a good solution as 3PL can pull back the rates if there is no volume in the future.

 

This is one of the biggest roadblock for Malaysia cross-border eCommerce.

 

     It is an egg and chicken issue for 3PL. In order to give competitive rates, sellers need to sell a lot. But without competitive rates, how can new sellers gain footage and start growing their business and ship more?

 

      None the less, we did not gave up and continue our journey in search of a solutions. One the 3PLs which gave us the most impression definitely is ARAMEX.

 

     Our first experience with Aramex is in our local online sellers chat group. At one point, a seller recommended Jabez into our group recommending his quality services on international shipping (although the seller was not happy also about the high shipping rates).

   

     Yes, Jabez runs Perak and Penang Aramex Service Centers and Logistics. 

 

     When we reached out to 3PLs in Perak. Aramex response was the fastest. After my call, next day Priya (Jabez’s employee) was already at our office setting up Aramex account for KK.

 

     Curiosity sets in, and KK visited Jabez-Aramex office in Silibin, Perak. We discovered another great father and son story in Ipoh family business and an entrepreneur business as well.

 

    Jabez Father, Mr. Deva started this 3PL services. But he is not born in Ipoh.

 

    So I ask: why Ipoh?

 

    Mr. Deva loves Ipoh. When we talked about Ipoh, his eyes lighten passionately.

 

     In the early stage of Mr. Deva life, his family moved around states because of his father job requirement. Due to that, he had the opportunity to study in ACS (My school also). It was one of his best life experience. Thus Mr. Deva knew he will be back. Mr. Deva had been providing his services to a reputable international 3PL for 37 years. He had a lovely family and raised three children to become doctor, dentist and IT expert. But then Ipoh always called at his soul.

 

     Thus after retiring, he didn’t choose to stay with his kids. He came back to Ipoh. Due to Mr. Deva vast experience in the logistics field, the reputable international 3PL requested him to help cover Perak region. Mr. Deva started a business providing logistics services with a van. As Mr. Deva had vast experience and understanding in 3PL quality management, the company grew rapidly and the coverage extended from Perak to Penang.

 

     However, five years running the business after retirement, Mr. Deva wanted to sell the business because all of his kids were doing great. He informed his family his thoughts. He thought nobody would take over his legacy. He was wrong.

 

     Taaa -Daaa. That one person which proves him wrong is Jabez, the crazy son! 

       Why I say Jabez is crazy? Jabez is an IT expert. He worked with DELL, and before he left, he is with Royal Bank of Canada. He also had a lovely girlfriend in KL. He had so much in KL. There is no reasons for him to come to Ipoh in my opinion.

 

     Yet when Jabez learned about his father intention to sell the business, Jabez had sleepless nights.

 

    Logistics is his father life passion. After all his father had done for him and the family, it seems not right to sell it off. After some years in employment, Jabez wanted to do something on his own! Additionally, Logistics currently is in a rapid growth phase due to the boom of eCommerce.

 

    So, Jabez decided to do it. Many thought there must be something wrong in his brain. Jabez never looked back, and come to Ipoh for his father, and left his girlfriend in KL.

 

    But don’t worry, he and his girlfriend did not break up. After three years of long distance relationship, they finally got married last month. That is a love story worth telling, but this is eCommerce Blog, not a romance site hahaha.

 

      Jabez had to start from the beginning again to learn the tricks about 3PL from his father. Additionally, most of the staffs are elder than him. However, if you know Jabez, he is a bright and humble fellow. He quickly gets along with the teams and the business.

 

    Privately he did grumble with me that working with his fathers is a challenge. Sometimes his mum seeing both arguing will ask Jabez why he had to take over the business.

 

     However Jabez understands that Mr. Deva with his vast experience is invaluable to the company. At times even if there is argument, it is for the good of the business. This argument will be sorted out eventually with patience. The business gets better day after day. Such is the strength of a father and son business, that blood is thicker than anything, against any challenges.

 

     The test came one and a half year after Jabez was back in Ipoh. Jabez submitted the company application to Aramex to run their service centre and logistics. It was a dynamic process of selection and Jabez was tested in many requests and assignment.

 

    Jabez and the team did it! and impressed Aramex greatly. As the result, they got the trust from Aramex and below is that first Aramex service centre run by Jabez.

 

    I am so glad that an Ipoh business like Jabez team is now a major stakeholder for future eCommerce growth. We are now in good hands to ensure on-time collection and delivery to Malaysia hub from Jabez.

 

     But yet this only solve the connection and service quality. Jabez can only offer the best rate provided by Aramex. To get even further good rates for Malaysian Products sellers, it had to come from Aramex HQ.

 

     Thus we started our blogs and FB page to engage with the community and reached out to Malaysia eCommerce Industry thru MECA and MDEC. With the incredible support from our blog and FB supporters, we attracted eBay Malaysia attention, and thru them we got connected with Aramex Malaysia and met Crystal.

 

     Again we had a responsible discussion with Aramex. We don’t want special rates for KK only. We want great rates for all eCommerce Sellers even when they are new. Then only the whole Malaysia cross-border eCommerce can grow! Crystal was very engaging and listened to my passion for eCommerce. Our first meeting ended with Crystal promising Aramex will do something about that.

     Actually, it is not only KK pushing International 3PL for that. MDEC was also working aggressively on this with ARAMEX. Recently MDEC recently launched the Ship4Less program with Aramex and announced desirable rates!

 

     I was there, due to MDEC invitation as a speaker. It is a priceless moment for me when I saw the rates by Aramex. 

      Hoping on this great opportunity, we invited ARAMEX to share this great news and opportunity with Perak and Penang Sellers. Aramex accepted our call for help almost immediately. They even offered to help cover the event cost when they know we are doing it at our own expense previously! Aramex wants Malaysia Product Owner, Manufacturers and Sellers to rise and meet global challenges also.

 

     Guys, I had to tell you, it is REALLY GOOD RATES for you to export cross-border thru eCommerce now. Since Aramex had answered Malaysia Sellers headaches, it is up to us now to perform when this window is here now. It won't be available forever. 

 

     Don’t worry even you are in Perak and Penang. We have Jabez at our side!

 

     So please again if you are in Perak, come to our event on 5th December, and Penang on 15th December. Even Jabez was surprised on the new ARAMEX rates. This events is for you guys, really. Just click on it. 

 

 

       Now please tell me, we have great shipping rates and great local service provider in Perak and Penang NOW! What are you  still waiting for?

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