International Perspectives II. Cross-Border Issues

Transcription

1 International Perspectives II. Cross-Border Issues Moderator: Kate Muth Executive Director International Mailers Advisory Group (IMAG) A. J. Hernandez President & CEO SkyPostal Joe Murphy Chief, International Postal Policy Unit Office of Specialized and Technical Agencies U.S. State Department Bureau of International Organizational Affairs Paul Schmudde President Gateway Express Tom Foley Vice President of Postal Affairs Globegistics Inc.

2 Cross-Border Issues PostalVision Kate Muth Executive Director International Mailers Advisory Group (IMAG)

3 IMAG IMAG represents a diverse community of marketers, consolidators, and international mailing organizations. Our core mission is to address barriers to the efficient flow of goods and information across borders for companies utilizing postal services. Current members: Access Worldwide Amazon APC Postal Logistics Aprisa Express Asendia USA Association for Postal Commerce Champion Worldwide Data Services, Inc. DHL ecommerce Direct Link Globegistics GrayHair Advisors ID Mail Systems IMEX Global Solutions International Bonded Couriers International Bridge, Inc. International Delivery Solutions Lane Press MSI/Landmark MailAmericas Market Response International R.R. Donnelley SkyPostal UKP Worldwide UPS Mail Innovations Ursa Major Associates USPS Global Business

4 The Market Source: Infographic by Stacey Rudolph, Business2Community, compiled from a variety of sources, including emarketer.com and AliResearch

5 What Customers Want Easy online shopping experience Websites in language of shopper Fully landed costs De minimis higher thresholds Seamless customs experience Easy (and free) returns Fast and predictable delivery free at a certain purchase price Full visibility

6 Going the Extra Mile While Delivering the Final Mile

7 About Us The Largest Private Delivery Network in Latin America Founded in 2001 Pioneers in the courier & mail delivery business in Latin America since 1972 Recognized as a top delivery service in the region Deliver mail and parcels for European Posts and the largest US & European consolidators

8 What does the Cross-border Shopper Want? The same experience we have in the US. Clear understanding of charges Delivery status updates Customer support Payment in local currency Easy returns

9 Going the Extra Mile showing import duties and taxes Online tracking visibility and updates Local in-language call center Local payment option for duties Return service local return center

10 PAUL SCHMUDDE President, Gateway Express, Inc.

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12 Singapore Post Blu Port EZ Buy

13 PostalVision 2020 Cross-Border Issues 3/21/17

14 Overview of Globegistics Globegistics is a global distribution service provider for e-commerce companies and large volume mailers offering solutions for the delivery of parcels, mail and publications to more than 200 countries and territories worldwide. USPS Postal Qualified Wholesaler and Sales Agent for Royal Mail IMAGE HERE Operating Facilities: JFK, ORD, LAX, MIA

15 Customer Needs circa 2007 Reliability Price Convenience ease of use Service Features Customs Clearance IMAGE HERE

16 Seller/Buyer/Marketplace Needs- Today Low shipping prices with faster delivery End to End Visibility Assistance with importing/exporting regulations Enhanced Customer Care Technical Assistance with On-Boarding Integration with Shipping Platforms, Merchant sites and Marketplaces Parcel ID, tracking showing movement Marketplaces require seller to accurately state delivery expectations and holding them to it. Simple, clear and speedy returns processes All-inclusive pricing at the point of purchase (DDP) IMAGE HERE

17 Consumer Sentiment Contributing To Changes Who is delivering my shipment? Fast delivery, product variety and availability are key service features of consumers. I ve waited all day. Can I get my delivery by tomorrow? Top 5 Service Features Fast delivery 71% 82% Of consumers want to know the name of their delivery provider. 1/2 70% Of consumers would specify a delivery date if they were able to do so. Of consumers abandon their shopping carts due to inferior delivery and shipping options. Product variety and availability Enhanced search functionality Flexible delivery options Easy return and exchange 64% 59% 54% 52% Source: Combination of DHL ecommerce, secondary research and Colography research. The Colography Group, Inc. IMAG Quarterly Meeting 5

18 Meeting Those Needs Low shipping prices with faster delivery USPS epacket and IPA, non-usps as well End to End Visibility Good options if willing to pay for it Assistance with importing/exporting regulations IMAGE HERE Dept of Commerce very helpful, plus in-house experts Enhanced Customer Care Local, 24/7, multi-lingual Technical Assistance with On-Boarding Should be smooth, simple and customized Last Mile Delivery Who is showing up at the door? Postal or courier? Duty/tax being charged?

19 Meeting Those Needs Integration with Shipping Platforms, Merchant sites and Marketplaces Service providers must be integrated Marketplaces require seller to accurately state delivery expectations and holding them to it. Properly selecting service level extremely important for IMAGE HERE ratings Simple, clear and speedy returns processes Anyone have one? Very difficult to build All-inclusive pricing at the point of purchase (DDP) Pay everything at checkout Can assist overseas buyers purchase goods from the US Becoming more popular How About 10 Years from Now??

20 The IPP (Integrated Product Plan)

21 What is it and what s it for? The IPP is the UPU s response to the changing composition of the mail stream, which is increasingly dominated by goods as a result of the growth of e-commerce. It s purpose is to develop a fully integrated portfolio of physical products with adequate remuneration to cover the cost of delivering those products.

22 Why do this? Existing products: overlap and compete with one another in some areas, sometimes fail to provide remuneration that allows posts to cover cost of delivery at other times are not competitive in the marketplace, and do not meet the evolving needs of customers and supply chain partners.

23 What does it do? It puts the focus on item content rather than external characteristics, classifying postal items into documents and goods categories. Implemented in two phases: --Phase 1 adopted in Istanbul in September 2016 to take effect January 1, Establishes small packets as the only category of Letter Post that can contain goods and requires application of an S-10 bar code to them.

24 What does it do? phase 2 Phase 2 to be developed and presented to an Extraordinary Congress in the fall of 2018 in Addis Ababa for implementation in The objective is to have a single integrated product portfolio, and integrated remuneration system for all postal items from 0-30kg. On top of the primary division between documents and goods, further product specification will result from required speed of delivery and additional value-added features. Product requirements will account for the emerging requirements of supply chain partners for AEI (EAD).