Client

The COVID-19 pandemic has increased the need for cross-border e-commerce

——Please tell us about your company profile.

Mr. Kasaya: Our company was founded in 2007 when our CEO, Mr. Hoshino, was a university student. Initially, we undertook system development and web production on a contract basis, but around 2012 we began developing a cart system for cross-border e-commerce, which we began offering as "LaunchCart" in 2016. LaunchCart is a service that can be used when building your own website for cross-border e-commerce in Asia. Currently, our main business is providing LaunchCart and system development.

Kume: Many companies that have adopted LaunchCart have said things like, "I don't understand the rules for importing and exporting," and "Overseas shipping is expensive," so we feel that logistics is one of the challenges when starting cross-border e-commerce. ECMS is a good fit for our company because it offers logistics for cross-border e-commerce at low prices, and we have co-hosted a number of seminars since 2017. At the time, we heard about ECMS at the seminar, and our staff also wanted to learn about logistics. We continue to work with them as partners, with them introducing companies that have inquired about ECMS to us.

Could you tell us more about your services?

Mr. Kasaya: We have four main services. The first is LaunchCart, which I mentioned earlier. The second is website creation for cross-border e-commerce. LaunchCart is a so-called management screen, so you need a website to start selling. We create sales websites that also handle the finer details, such as translation.

Until now, we have provided support specializing in systems, but with the increasing need for cross-border e-commerce due to the COVID-19 pandemic, we have expanded the scope of our services to include the third service, operational agency services, and the fourth, assistance with listing on e-commerce malls.

When we operate a proprietary website using LaunchCart, we respond to various customer inquiries in Chinese and English, request shipment to the warehouse when an order comes in, and operate the management screen. We handle all the time-consuming aspects for companies that operate e-commerce sites.

Kume: By the way, our company has subsidiaries in Taiwan, Shanghai, and Malaysia, and operations are currently handled locally by Taiwanese staff.

Mr. Katsuya: The fourth e-commerce mall is Shopee, the largest in Taiwan and Southeast Asia. We not only provide support for customers when they open a store on Shopee, but we can also list their products in the shop that we have set up.

What issues do customers often come to you for advice?

Kume: The first thing that comes to mind for Japanese companies wanting to start cross-border e-commerce is, "Will I be able to sell?" After that, specific challenges arise, such as "We don't have staff who can speak the language," or "We don't have knowledge about shipping and customs duties."

What solutions do you propose to address these issues?

Mr. Kasaya: When it comes to psychological hurdles, I often explain that it's almost the same as domestic e-commerce. The decisions you make when starting a store are basically the same as domestic, so I tell them that you just need to decide those parts for overseas. However, there are barriers such as language and customs that don't arise in Japan, so I try to lower the hurdles customers feel by explaining that our company and our partner companies can solve those issues.

We want people to feel closer to the world through cross-border e-commerce

--What are your thoughts on cross-border e-commerce logistics from your perspective as a partner?

Mr. Katsuya: Recently, I've noticed that there are very few warehouses that can provide invoices in Chinese.

Kume: LaunchCart has many customers in Taiwan, so we have address information in Chinese. However, most warehouses use the alphabet, so we have to translate names and addresses.

Mr. Kasaya: In cross-border e-commerce, there are many companies that advertise direct shipping to Japan. Even though it's an e-commerce site for Taiwan that sells locally, it feels unnatural if the address input is in English. For example, when browsing a site in Japan and purchasing a product you like, if you enter the address starting with the street number instead of the prefecture, you might think, "What?" and be confused about the purchase.

As a provider of LaunchCart, we want to help our customers sell their products. However, if the warehouse does not support Chinese, we have no choice but to support it in the alphabet, which can be frustrating.

Kume: ECMS is strong because it supports Chinese (only available if you are using a Chinese-compatible solution). Another advantage is that it supports refrigerated and frozen products. There is cool EMS, but it is expensive, so currently, refrigerated containers are often used for B2B transport. Refrigerated and frozen products are popular in Japan, so I think there is a need for low-cost individual delivery of refrigerated and frozen products in Asia.

Another issue with cross-border e-commerce logistics is that it's difficult to understand customs duties. Even a slight difference in raw materials can change the HS code, so people often want to know the customs duties rate, even if it's just roughly.

--Please tell us if you have any comments regarding ECMS.

Kume-san: I wish the fee would be calculated based on actual weight rather than volumetric weight. However, there have been cases where the fee was actually cheaper than the actual weight of EMS, even though it was originally charged based on volumetric weight.

As for the positive aspects, in the early stages before we became a partner company, we were able to look up anything we didn't understand on ECMS's official website.

Next, our company became a partner company and we were assigned a sales representative who provided friendly and courteous support. When we asked about tariff rates, they looked it up right away, and they provided us with not only their own rates but also those of other companies so we could consider them. They have really helped us as a partner company.

--Finally, please give us some advice for businesses involved in cross-border e-commerce.

Mr. Kasaya: In cross-border e-commerce, it's rare for a product to sell in just two or three months. Most companies spend several years promoting any hit product, so instead of spending time and money on preliminary research, I'd encourage you to just get started without overthinking it. You can also use the money you would have spent on research for advertising expenses.

Kume: I feel that Japanese companies often leave everything to others, but our stance is that once they reach a certain size, they should do things themselves. This will increase profit margins and allow them to accumulate skills and know-how. I believe that if more companies graduate from our support and become independent, Japan's national strength will also increase.

Mr. Kasaya: Our company's vision is "Bringing the world closer to you." We believe that by allowing companies using LaunchCart to independently operate their cross-border e-commerce businesses, they will be able to feel closer to the world than they do now.