Digibox ushering in new era of e-commerce logistics

With the aim to make the delivery solutions smarter, Daraz, Bangladesh’s largest e-commerce platform, has introduced Digibox, a digital locker system that is providing customers with a self-service delivery location to collect and return packages at their own convenience.

Developed by ekShop, the integrated e-commerce platform of the Aspire to Innovate (a2i) programme of the ICT Division, Digibox has been launched at 10 points in Dhaka and Chattogram as an alternative to conventional delivery systems. The system is currently handling over 5,000 parcels monthly. The locker system is due to be introduced in another 50 locations.

Made in Bangladesh

The comfort of being able to get one’s necessary products delivered to their doorstep has revolutionised shopping. Now, the options have become more favourable for consumers. For those who find it inconvenient to wait for their delivery, can now choose to collect their purchase from the lockers at their own time. Even though similar systems have been popular in the US, India, China and other countries for some time now, the self-service lockers made their debut in Bangladesh in early October.

Speaking at Digibox’s launching programme, ICT State Minister Zunaid Ahmed Palak said, “With the looming global economic crisis, we need to focus on local innovation and trade to boost our economy and reduce unnecessary foreign currency expenditure,”

He said Amazon started a similar service called “Amazon go Locker” in 2018, so did Alibaba in the same year, while India started it back in 2020.

“All of these solutions are either American, European or Chinese and would cost anywhere between $15,000-$30,000 per installation, where ekShop-Digibox is completely manufactured in Bangladesh and saving on that cost,” he added.

Rezwanul Haque Jami, head of Digital Business at a2i said, “Digibox is our own product. Almost everything related to the digital locker has been made by the local components and expertise.

“We have a factory at Mohammadpur where all necessary parts except the lock are being made at the factory. All of digibox is made by the engineers and developers of Ekshop.”

Digibox in operation

Jami said Digibox is well-suited for solving storage and distribution challenges in any industry.

With its help, companies have already improved their operations while reducing labour costs, asset losses, and automated regulatory compliance.

For e-commerce logistics, it allows users with the fastest delivery-retrieval cycle. There is no more missed delivery or returns or extra delivery cost.

“Digibox is designed in such a way that one single installation can serve up to 300 customers a day, without spending Tk 50-100 per delivery. That will save Tk 5 lakh-Tk 9 lakh a month,” said Jami.

He estimates that with 1000 such boxes across Bangladesh, the total logistics lead time can be reduced by 50 per cent for the whole e-commerce sector.

“Logistics companies will deliver the products to the boxes and customers will be able to pick up their ordered products using an OTP number”, Jami informed. AHM Hasinul Quddus Rusho, chief corporate affairs officer at Daraz, said this service will provide the customers with strong security and gives the customer privilege to enjoy the delivery at their convenience with a low delivery fee.

The system is contactless with a unique electronic locker.

Under the system, the products go to a collection point where they are organised in different ‘Digiboxes’. Using the order and tracking number of a product, customers can locate their products at designated Digibox and collect them using a one-time password.

So far, 10 boxes are operating in Dhaka and Chattogram, and another 50 boxes are already in the pipeline, said Rusho. He said customer responses regarding the new system have been quite satisfactory. They have shown positive responses particularly in terms of saving time, money and convenience as the collection time is flexible 24/7 with a low delivery fee of Tk 15, he added.

Future

Khondoker Tasfin Alam, chief operating officer at Daraz Bangladesh, said, “With the ‘Digibox’ service, Daraz strongly believes that we are all set to rise to another level towards the next era of digitisation in Bangladesh. Moreover, we want to provide digibox service across the nation.”

He said Daraz Bangladesh plans to build a smarter logistic system in Bangladesh that is more environment-friendly. But the lack of necessary infrastructure is a problem in this regard and a lot of innovation is needed.

“This is where ICT Division’s ekShop comes in,” he said.

Daraz’s Rusho said, “For the near future, the goal is to install Digibox on all major metro cities and to make quality digitised logistics products.”

He also said, “In the long-term, Daraz will install Digibox all over Bangladesh to make it accessible to everyone. This would basically allow us to create an eco-friendly logistics system.”

“Furthermore, we are planning to extend this service to our other operating countries in South Asia,” Rusho hoped.