Parcel delivery services and cross-border e-commerce Werner Stengg EC, DG MARKT, "online & postal"
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1 Parcel delivery services and cross-border e-commerce Werner Stengg EC, DG MARKT, "online & postal" Königswinter, 26 November 2013
2 Delivery: yesterday.
3 and tomorrow?
4 and the day after tomorrow?
5 But what about today?
6 1. The context
7
8
9
10
11 2. The supply side
12 Parcel and express markets See presentation by Nicola Shorland! See WIK study on main developments Traditional B2B operators extend their business to B2C delivery. Launching collection and delivery points (e.g. parcel shops, Kiala) Using easily accessible parcel lockers for parcel collection and delivery Investing in sorting and delivery capacity Operators develop innovative delivery solutions to improve customers convenience and reduce delivery costs. Co-operations among national postal operators
13
14 3. The demand side
15 Consumers care about: Money Speed Reliability
16 Choice/convenience
17
18 Main problems for users: Repeat purchase Abandoned shopping cart Dissatisfaction Price X x x Return X x Speed X x x Tracking X x Complaint handling x Information gaps (lack of adequate info) Service gaps (lack of choice/too high prices) Performance gaps (inferior delivery performance) Source: CE,
19 Returns Price Value added Point of delivery Time of delivery SHOPPERS Importance of delivery characteristics Service gaps Express delivery Next day delivery Delivery within 2-4 days Delivery at agreed time slot Evening delivery Saturday delivery Delivery to the home adress Delivery to work adress Delivery to post office Delivery to relay point (shop) Delivery to parcel kiosk (automated locker) Track'n'Trace Electronic notification of delivery ( or SMS) Insurance related to delivery Cash on delivery Free delivery Standard delivery Faster but more expensive delivery than More convenient but more expensive delivery Take return parcel to a post office/collection Organise a specific pick up with the delivery Track'n'trace of return parcel Return product immediately at the moment of 0% 10%20%30%40%50%60%70%80%90%100% Source: Copenhagen Economics, e-shopper survey 19
20 Returns Price Value added Point of delivery Time/speed of delivery E-RETAILERS Importance of delivery characteristics Express delivery Next day delivery Delivery within 2-4 days Delivery at agreed time slot Evening delivery Saturday dleivery Delivery to the home address Delivery to work address Delivery to post offce Delivery to relay point (shop) Delivery to parcel kiosk (automated locker) Track and trace Electronic notification of dlievery ( or SMS) Insurance related to dleivery Cash on delivery Wide range of different delivery service options with Limited range of delivery service options, but at a Take return parcel to a post office/collection point Organise a specific pick-up with the dleivery operator Track and trace of return parcel Return product immediately at the moment of Source: Copenhagen Economics, retailer survey 0% 10%20%30%40%50%60%70%80%90%100% 20
21 Cross-border prices 3-5 times higher than domestic prices Bulk shipment price, 2kg domestic parcels, 2012 Euro :5 15 1: Domestic Cross-border (cheapest EU destination) Cross-border (most expensive EU destination) Source: Copenhagen Economics, delivery operator questionnaire 21
22 4. The way forward Delivery
23 "A roadmap for completing the single market for parcel delivery by mid-2015" Increase transparency and information For consumers (characteristics, costs) For e-retailers (availability, performance) For regulators (monitoring) Improve the availability, quality and affordability of delivery solutions Enhance complaint handling and redress mechanisms for consumers
24 Examples of actions E-retailers: Understandable information on delivery and return options on websites What: Delivery period, tracking possibilities, different options for last-mile delivery, return solutions, tariffs, How: Code of Conduct, trust marks,
25 Examples of actions Shared definition of basic concepts/features of delivery services (dimensions, speed, additional services) Better information for e-retailers (through platforms, comparison websites, ): o Domestic and cross-border o Delivery solutions (price, speed, services) o All operators (alternative, intermediaries, )
26 Examples of actions Increased transparency of (x-border) parcel markets o Member States: define a clear statistical framework, enabling NRAs to collect relevant market data on domestic and cross-border parcel flows from all postal service providers active on the B2C and B2B parcel markets. o NRAs: annually publish the relevant market data
27 Examples of actions Industry: Promote inter-operability to facilitate exchange of data (e.g. track-and-trace, labelling, ) More effective returns solutions Commission/CEN: Common address system?
28 Examples of actions Industry: better co-operation with regard to complaint handling and consumer protection systems Commission/CEN: measure complaints concerning damaged, delayed or lost parcels
29 18 months to make progress Delivery operators E-retailers Member States & regulators (ERGP) European Commission SMEs? Less developed e-commerce markets? Peripheral areas?
30
31 PS: News An Australian based startup firm intends to use commercial drones for package delivery for domestic customers in 2014.
32 Customers within the drone zone will receive a notification on their smartphone that will enable them to track the parcel via GPS. They will then be able to receive the parcel directly at any outdoor location. However, drone operators and other industry professionals believe the concept will not take shape and that rules for flying drones in Australia are being overlooked. Zookal claims the proposed delivery method will reduce waiting times from two to three days to as little as two to three minutes if successful. The Sydney Morning Herald report, 22 Oct 2013
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