2018 Current status of the Japanese delivery market

Volt Technology
Sep 4, 2018 · 3 min read

In 2016, Japan handled over 4 billion parcel delivery services and now is an Asian largest market after China. Japanese online shopping mall delivery market is obtaining by 4.4% of the total retail market share, compared with 10% in the US and China. Currently, Japanese online shopping market is rising up, and demand is steadily increasing. It is expected to reach 6 ~ 7% by 2020.

In general, Japanese market should solve at least two major problems, to facilitate the smooth transition of the delivery market. It is “high delivery price” and “parcel return delivery rate”.

Due to lack of manpower in Japan, the delivery fee was raised. Nowadays, the delivery cost of online shopping malls in Japan is about 12,000 won, which means that the parcel is cheaper than the shipping cost, in another word, the tail wagging the dog. It is expected, the settlement of the increased delivery service will accelerate the online shopping market in Japan.

According to a survey conducted by three large delivery companies including Sagawa Kubin, a representative delivery company in Japan, the delivery rate for ordinary home services reached 19.6%. In the case of the quantity of delivered parcel return rate is more than 3 times, it is counted as 0.9%. This shows the inefficiency of delivery service in Japan.

According to the result of a survey conducted by the Ministry of Land, Infrastructure and Transport and Tourism with the involvement of delivery service consumers, discovered that 42% of respondents “didn’t know that delivery was on the way”.

In order, to lower the delivery fee, the most important thing, is to share the delivery details and to inform the recipient with the expected delivery time accurately.

In 2017, Volt Technologies was the fast-growing company in Korea with fair assessment of delivery and management, providing the detailed delivery information to customers based on blockchain technology platform.

Volt Technology’s blockchain technology platform provides high-efficient services through the evaluation of carrier evaluation, escrow operation based on smart contract, and encryption of information such as customers delivery items and quantity.

Volt Technology’s AI (artificial intelligence) technology measures prices, considering various variables, such as weather, demand, rush hour, and assessments of deliveries, and provides low-cost smart delivery services by reducing the distance traveled by deliveries via the Instant Hub, eventually lowering prices.

On August 15, 2018, the Volt released APP for Japanese market. Volt is developing a smart service similar to Japanese GRAB (Grab, the world’s largest delivery service company) and plans to provide blockchain and AI based specific delivery services to Japan, through the launched Japanese version of APP.

Source : KOREA LOGISTICS NEWS http://www.klnews.co.kr/news/articleView.html?idxno=117738

Volt Technology

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P2P Delivery Platform based on Blockchain

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