Trans-Pacific Partnership seen as boon to worldwide online s

THE controversial Trans-Pacific Partnership (TPP) is not so much seen as massive movements in massive ships by its proponents, but rather in millions of online purchases.

"By improving customs clearance in 12 TPP countries, trade will become simpler, faster and more transparent," said Asia-Pacific FedEx chief Karen Reddington.

The easing of trade will also help its rival UPS to take advantage of an e-commerce boom in Asia, reports the Nikkei Asian Review.

The region's market for physical distribution of goods bought online is expected to reach $1 trillion by 2017, surpassing the North American market by 20 per cent.

"There is no place where online shopping is hotter than in Asia," said UPS chief executive David Abney.

A UPS survey shows that 11 per cent of people in Asia who shopped online in 2014 made purchases on US websites.

Cross-border e-commerce in the region grew at seven times the average pace of expansion of gross domestic product, while Asian e-commerce as a whole grew at four times that.

The percentage of people in the region who place orders on US websites is also expected to rise further.

Boeing says the volume of goods transported between North America and Asia will continue growing at an average annual rate of 5.4 per cent over 20 years.

As online shopping becomes embedded, the increased volume has a downside - customers are more demanding.

According to the UPS survey, 81 per cent who buy online in Japan confirm return provisions before purchasing. That's 90 per cent in Singapore.

When sending back items, 45 per cent of customers in Asia are concerned that it takes too long to get refunds.

In Japan alone, the proportion is 20 per cent. The numbers suggest that if shippers can ease buyers' concerns regarding the return process, it will boost demand.