E-COMMERCE'S ASCENT

The rise of e-commerce has been rapid, accelerated significantly by Covid-19, forcing everyone to adapt much faster than anticipated. The industry knew e-commerce was coming, but the speed and scale of its arrival caught many by surprise.

“We’re all still figuring things out—who the new players are, which vendors and operators to work with, and how to navigate this evolving landscape. If I had to sum it up in one word, it would be a shock,” Jonathan Fredericks, Managing Director of Mail&More by ECS Group, stated.

“The growth has been exponential, and it continues to be, with even more acceleration expected in the future. We’re still at the beginning of this journey, and there’s a lot we’re still figuring out to meet customer requirements.” 

e-commerce demands precise tracking, timely shipping, and specific delivery destinations, but this industry—once considered a niche—is now rapidly developing, with this segment due to be a clear and sizeable part of it. 

“When we first started addressing express and e-commerce at ECS Group, it almost began as a joke,” he stated.

“We saw an opportunity to handle mail and e-commerce parcels, and what started as a light-hearted idea quickly became serious.

“We realised we had the expertise, having dealt with mail for over 25 years, but the nature of mail has changed. What used to be just letters is now primarily e-commerce parcels.”

Recognising the potential for exponential growth, operators in the airfreight space know that they have to organise themselves effectively, asking key questions: What needs to be done digitally? Who are the players? What do customers expect? From there, it is possible to identify the systems and partnerships required to meet these needs and orchestrate efforts to get things moving.

“It wasn’t easy—figuring it out took collaboration among a group of people with varying levels of understanding in this area. But we focused on digitalisation and leveraged our existing knowledge of e-commerce to build a strong foundation,” Fredericks added.

Regional potential

While Shanghai is a major player, the e-commerce boom isn’t limited to just one city in China. Shenzhen, Chengdu, Hong Kong, and other locations are all experiencing this growth. e-commerce has opened up opportunities across the entire country, especially with key players emerging in various regions.

People often talk about big names like Alibaba, Team World, and others in China when discussing e-commerce, but it’s important to recognise that there are many smaller yet significant players in the market. Engaging with these companies requires credibility and the ability to offer a reliable service to airlines and customers alike.

“Looking at the global market, China and Asia are undeniably central to e-commerce, but growth is also happening worldwide. Southeast Asia is emerging as a significant player, partly due to overflow from China but also because it’s becoming a hub for producing and shipping e-commerce goods globally. I expect Southeast Asia to experience an even bigger boom in the next 24 months,” Fredericks stated.

“India is another to watch. While traditionally known for textiles and pharmaceuticals, I believe it will soon become a major force in e-commerce as well. We’re already seeing increased interest and requests.

“North America has been a leader in e-commerce, but we’re also seeing growing shipments to Africa, making it an area of interest too.”

Tailored approach

Airlines operate with different networks, destinations, aircraft, and systems. On the other side, there are freight forwarders, postal operators, or consolidators, particularly in e-commerce, who have specific expectations in terms of timelines, routing, and delivery to niche destinations.

To bridge this gap effectively, GSSAs have had to become “bilingual” in the sense that they understand and can translate the language of e-commerce and mail to the airlines, and vice versa. This capability allows those in the industry to facilitate smooth communication between both sides, ensuring that systems and processes align to meet the customers’ needs. 

“Our role is to help both parties understand each other better, enabling them to work together more efficiently,” Fredericks explained.

“This ability to link and engage different players in the industry is one of ECS Group’s unique strengths, especially in a market that is often prone to disruption and challenges. Being able to offer stronger connectivity and reliability is critical, and it all comes down to credibility and legitimacy.

“When we launched our “Mail and More” division four years ago, we spent the first year purely understanding the needs of our customers—both operators and airlines. Airlines differ in their aircraft, networks, hub setups, and cost-control desires.

“As a GSSA, our job is to offer solutions that airlines can trust, whether they choose to handle operations themselves or rely on us. Trust is built through credibility, service quality, and digital capabilities.”

e-commerce’s ascent – Air Cargo Week