Alibaba’s logistics arm helps Beats improve sales during upcoming online shopping craze

Beats audio products are likely to see bigger sales during the upcoming Chinese online shopping festival thanks to the company’s cooperation with Cainiao, the logistics arm of China’s e-commerce giant Alibaba.

Based on presale data and artificial intelligence prediction, Cainiao has transported the hottest products of the brand to warehouses in more than 20 major cities ahead of the shopping craze that begins on Nov. 11 in a bid to further shorten delivery time.

Turnover of the Beats online store on Tmall, Alibaba’s e-commerce platform, is expected to increase during the shopping festival, but the operating officer of the store, Wu Miaoyu, does not see logistics as an issue.

The pre-allocation of the Beats products covers all the first- and second-tier cities, said Sun Wei, an employee of the Beats Tmall store.

According to Sun, Cainiao’s smart allocation system can realize a 99.99% accuracy rate this year, greatly reducing the number of mis-deliveries.

In addition, through artificial intelligence, Cainiao will, for the first time, realize real-time prediction of total shipment and transport capacity in order to avoid the busiest express delivery companies and thus possible delays.

After Beats’ cooperation with Cainiao, it only takes less than 24 hours for the customers to receive their orders.

On a recent promotion day, sales of Beats headsets on the Tmall store were several times higher than normal. However, Cainiao helped the store send out 70% of the orders on the same day, and 80% of the orders were received within 2 days.

“This was never imaginable before,” Wu said.

Faster delivery will improve the shopping experience of Beats followers, Wu noted, adding that it also means lower cost and higher efficiency for the merchants.

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