Pinkoi Direct is a logistics option where Pinkoi is responsible for all cross-border logistics, bearing the costs of international shipping, import duties, and final destination delivery. Orders that qualify for Pinkoi Direct will be subject to shipping fees and free shipping thresholds set by Pinkoi.
Pinkoi Direct is an additional shipping option offered to international customers, in conjunction with the shipping options provided by designers. Pinkoi successfully conducted closed tests with hundreds of shops in 2024, and shops participating in the Pinkoi Direct pilot programs saw an average 20% increase in cross-border orders to Japan. Pinkoi plans to gradually roll out Pinkoi Direct to shops that meet the relevant shipping requirements in 2025.
Pinkoi Direct Lowers Barriers to Cross-Border Shopping
According to Pinkoi's data, an increasing number of customers are browsing cross-border brands on the Pinkoi platform. Pinkoi also observed that customers encounter the following challenges when placing cross-border orders:
Decreased purchasing power: For example, the Japanese yen has depreciated by over 30% in the past five years, leading to more conservative spending among Japanese customers.
High shipping costs: Cross-border shipping costs are relatively high. If the unit price of a product is low, the shipping fee accounts for a large portion of the order amount, deterring customers. Customers are more accustomed to the shipping terms of local e-commerce platforms.
High import duties: Due to the complex calculation of duties, customers are often notified of the duty amount only after the goods arrive at customs. For more cautious customers, the uncertain cost is a barrier to purchasing from cross-border e-commerce platforms.
By handling overseas shipping, international shipping fees, import duties, and managing exchange rate risks, Pinkoi enables customers to purchase items from their favorite cross-border brands at a price closer to that of local products. Currently, Pinkoi Direct is available for shipping between Japan and Taiwan. Pinkoi also anticipates that Pinkoi Direct will become available for shipping between Hong Kong and Taiwan in 2025.
Benefits for Designers
Increased cross-border sales opportunities: By bearing shipping and duty costs, Pinkoi makes designers' products more competitive, attracting more customers from overseas.
Reduced risk of rejected shipments and returns: Since Pinkoi covers all duties, designers don't need to worry about customers rejecting products due to unwillingness to pay duties.
No need to worry about shipping fees: Pinkoi offers a low-barrier free shipping policy, with unified free shipping thresholds, rules, and discounts, thus enticing more international customers to make cross-border purchases.
Reliable delivery process and service guarantee: The system automatically updates shipment statuses, eliminating the need for manual updates. Pinkoi also takes responsibility for the entire shipping process, ensuring a smooth experience for designers.
Benefits for Customers
Enjoy domestic-like free shipping conditions: Customers can purchase cross-border products with low free shipping thresholds and local shipping rates. Pinkoi covers international shipping fees and exchange rate risks.
Transparent and affordable shipping fees: Pinkoi sets unified free shipping thresholds and shipping rates, reducing barriers to purchasing cross-border products.
Professional cross-border delivery services: Pinkoi handles all cross-border deliveries, including paying shipping and duties, and will be responsible for handling any product damage should it occur during the delivery process.
Import duties covered by Pinkoi: Customers do not need to pay additional import duties, thus lowering the barrier to cross-border purchases.
Multiple shipping options: Both economy and express delivery services are offered to meet the needs of different customers.
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