After years of research on overseas expansion, iHerb finalized a partnership with CJ Logistics to open its first international third-party logistics (3PL) distribution center in Incheon, South Korea. This will be South Korea’s first E-Commerce distribution center since the government changed its laws to open doors to foreign E-Commerce companies.
The facility is located in a Free Trade Zone nearby Incheon International Airport and Incheon Ocean Port and will be managed by CJ Logistics. iHerb has worked with CJ Logistics for many years as long-term strategic partners and for final mile delivery in Singapore and Korea.
According to Korean Customs, cross-border shopping is growing rapidly as a new type of trade. The market was estimated to be valued at 1.9 trillion Korean won in 2017 and is expected to grow to 4.6 trillion Korean won by 2020. Incheon International Airport is a central gateway to the rapidly growing Asian market and this new facility will help cut transit times to iHerb’s large customer base in Asia drastically.
iHerb’s Incheon Distribution Center is scheduled to go live with outbound orders to customers in Japan and Hong Kong starting in 2019. This 216,000 square foot, climate controlled, state of the art facility will be able to process up to 40,000 orders per day. The facility will use state of the art operation systems optimized for health products to ensure thorough quality control.
Park Geun-Tae, President of CJ Logistics, said, "Through continuous development and differentiation of high-tech logistics capabilities, we will strive to reduce logistics costs and improve efficiency for our customers, provide fast and safe international express service to global consumers.
iHerb, which has been in the E-Commerce business for more than 20 years, is known to comply with the industry's highest standards of product quality and freshness. This new expansion will not only be a huge step for iHerb but will play a leading role in foreign E-Commerce presence in South Korea.