Realising Europe’s potential: e-commerce and the postal operators
Realising Europe’s potential: e-commerce and the postal operators / 1
Table of contents
Executive Summary 2
Embracing e-commerce 4
A choice of services 6
Prioritising consumer convenience 8
A seamless cross-border service 10 The European postal market fundamentally supports cross-border e-commerce in the EU.
We know consumers are increasingly looking online to purchase goods and services – both domestically and across borders. And we know that businesses are expanding their online offerings to capitalise on this trend. Realising Europe’s potential: e-commerce and the postal operators / 3
There is no doubt that the The postal operators are an integral part When it comes to serving our future of Europe is embedded in of the overall e-commerce experience. customers across borders, we Today we offer a vast range of services understand that different markets e-commerce. to meet the needs of all customers, have different needs. Our flexible embracing online and mobile technologies range of products and services is to provide competitive and convenient centred on our ability to interconnect services across Europe. with different providers and cater to local preferences - something we We are supporting SMEs to develop their understand from our extensive network own e-commerce offerings through online of 27 EU operators and 1.4 million platforms and specific web portals and full time employees, linking over 500 are committed to a business model which million people everyday. Moreover, the is able to help drive the cross-border E-parcel group (EPG) has been helping growth of these companies. to boost the overall quality of cross- border e-commerce and continued Above all, we offer tailored services at improvements in convenience and competitive market prices – so that innovative products will be at the core customers may select services based on of our future business. their unique needs. The postal operators utilise the best available service providers Effective postal services are essential to deliver packages and parcels, partnering for the economic life of the European with express, courier services and other Union. That is why our interconnected providers when it is most effective to do so. network is at the heart of our ability to support the growth of cross- While customer needs evolve, we border e-commerce. Innovation, continue to prioritise convenience in order combined with such growth, benefits to create innovative solutions for the consumers and businesses in the EU. e-commerce market. Research published We invite you to read our brochure by Royal Mail reveals that four out of every and discover the role of the postal five consumers choose to shop online operators in boosting cross-border because of the convenience. e-commerce in the EU. Where does the future of our industry lie? In a word: e-commerce.
Embracing e-commerce
Internet shopping is accelerating European postal operators are already They can easily buy as one package worldwide and customers are working to support businesses of all sizes an e-commerce website, discounts on through the development of bespoke delivery, marketing data and email and now looking beyond their own product solutions and making the most postal advertising. borders to purchase goods and of our ability to connect between the services. According to research different markets. This is particularly ■ bpost has also launched in Belgium the by Forrester, global online retail relevant for SMEs looking to capitalise on Shipping Manager as a tool for helping e-commerce development. Identified as SMEs in their checkout process online, is estimated to reach $536 billion the growth engines of Europe, SMEs are thereby helping them to offer additional by 2012. In Europe alone, online seeking to broaden their online presence choice to consumers. sales have doubled since 2005 and cross-border reach, something the and are forecast to grow 65% postal operators are helping them realise ■ More and more Nordic consumers are by offering support beyond the traditional buying products online more frequently. between 2010 and 2015. As a result delivery. PostNord has therefore established a businesses are prioritising their parcel service – MyPack – which allows online offerings. This change in ■ In France, Le Groupe La Poste offers SMEs to send parcels to consumers consumer and business behaviour Box e-commerce aimed at assisting within the entire Nordic region as easily SMEs in building a website quickly as they do domestically. has presented a significant and easily to begin showcasing their opportunity for the postal operators products and services online. ■ PostNL has launched CheckPay in to contribute to e-commerce the Netherlands, a service to protect growth and further cross-border ■ Royal Mail, in partnership with industry- buyers against fraud. When a seller leading providers, offers Simple Ways opts for this service, the pre-payment trade in Europe. to Grow, to offer discounted services to from the buyer is only released upon expanding businesses, including SMEs satisfactory delivery of the product moving into e-commerce. confirmed via a unique code. Realising Europe’s potential: e-commerce and the postal operators / 5
Delivery Fulfillment Transport
Customer Care Postal operators e-commerce Payment in the e-commerce value chain
Return and repairs
Web shop As the market is constantly evolving, so are we. The reality today is that both buyers and sellers expect more from us. Marketing Our services are not just about delivering a letter or parcel from one point to another. The digital era of communications has enabled us to develop innovative solutions to deliver efficient and high-quality services. The postal operators have fostered a range of online and mobile options for SMEs to quickly calculate cross-border postage CASE STUDY: MeinPaket.de prices and delivery options. They are In Germany DHL Paket was the first parcel delivery operator to launch responding to the specific rise in electronic a secure online shopping portal called MeinPaket.de, a one-stop shop goods ordered online by providing combining shopping and trusted shipping services. insurance and ‘signature upon delivery’ The benefits of MeinPaket.de are: options. Through creative solutions such as these, postal operators have a valuable ■ An innovative marketplace that links different online shops and products role in ensuring a positive shopping from technology, home design, fashion to lifestyle sectors. experience for European consumers.
■ Allowing SMEs to use this platform to feature their products and services. The advancement of cross-border This additional channel enables SMEs to maximise reach and connect with a e-commerce benefits consumers, SMEs, broader audience than their website alone would do. large businesses, and the EU economy as a whole. European postal operators are ■ MeinPaket.de actively facilitates cross-border e-commerce by offering European committed to continuing to support this e-retailers a marketplace in Germany to enter the German market without advancement through convenient, reliable the necessity of building an own local presence. and innovative services. European postal operators now offer a range of services and delivery options that consumers and SMEs select based on their unique needs or circumstances. Recognising that different customers have different needs, our prices are always tailored to the services provided. This means that a customer selecting a basic delivery option will be charged at a lower rate than a customer requesting tracking or signature upon delivery. That is because of our strong belief that the price should be proportionate and reflect the value of the services rendered.
A choice of services Realising Europe’s potential: e-commerce and the postal operators / 7
Our flexible range of e-commerce shipping options can match customer needs at all levels, from the most basic option to advanced services. Customers can choose to send the same parcel using different services, taking advantage of different features, including speed, tracking, delivery confirmation, insurance options and signature upon delivery.
To further enhance our services, we are able to assess different cost options and recommend the best solution accordingly. We do this by incorporating express, courier services, ICT, logistics operators and other providers into the delivery chain when appropriate. This is made possible through our interconnected approach with other providers so as to provide the highest quality delivery services to consumers and SMEs.
But our job does not finish at the point of delivery. In the event that a customer wishes to return a purchase, postal operators have developed a number of options for simple, quick and low- In the highly competitive market cost returns both domestically and in which we operate, we aim cross-border. These solutions include to distinguish ourselves by a collaborative initiative amongst postal prioritising convenience and operators called ‘Easy Return Solution’ (ERS). For sellers and buyers alike, it is a reliability at prices that reflect the quick and easy way to return purchases. value of our services. consumer Prioritising convenience
Recent research by Royal Mail indicates We recognise the importance of that consumers are becoming more anticipating these consumer demands. demanding not just about what they Our priority is to proactively provide order, but how the order is shipped: a convenient service that fits in with their daily life, and incorporates online ■ 80% of consumers cite convenience and mobile advances, as well as as their primary reason for shopping regional and local preferences - which online is precisely the reason operators offer Through long-lasting relationships services such as “preferred day” and at the local and national level, ■ 75% said the following favourable “preferred place”. European postal operators have delivery factors would make them continue or increase their usage of an ■ In Germany, people can choose a solid understanding of evolving e-retailer: to collect parcels 24/7 from one of consumer preferences and, above - knowing which company would approximately 2,500 automated all, the need for convenience. be responsible for delivering Deutsche Post Packstations and - clear information about pricing receive SMS / email notification. - flexible delivery options They can also send parcels using a touchscreen automated process. ■ 90% would be more likely to shop About 90% of Germans can reach a again with an e-retailer if they are Packstation in 10 minutes. happy with the delivery of their goods ■ A number of other operators have developed similar automated postal ■ 80% prefer to receive updates at pick-up solutions, including bpost, every stage of the delivery process Cyprus Post, PostNord (Denmark), Eesti Post and Le Groupe La Poste. Realising Europe’s potential: e-commerce and the postal operators / 9
We have received your package for transport. For more information on www.post.at/ track/123456789123456789123456. SMS notification is a fast way for customers to choose when and where to collect a letter or parcel, learn when it has been delivered What information will the SMS contain? and at what time it is ready for
pick-up. Likewise the sender can ■ information about the sender be alerted by SMS as soon as a ■ where to collect the mailing mailing has been collected. Other ■ a unique collection code ■ when an item is due for options include the SMS delivery/has been delivered being sent to a third party and ■ any useful reminders e.g. “Don’t concurrent email notification. forget to bring your identification!”
■ Austrian Post has introduced ‘Drop-Off The bpaid card is also widely used ■ Through its “So Colissimo” offering Box’ for 24/7 returns, and ‘Parcel Box’ for purchases in shops and ATM cash Le Groupe La Poste in France offers – parcels are placed in a secure box at withdrawals. a number of innovative IT solutions select apartment buildings and a private to e-retailers to help them expand access code is given with a notification consumer choice when it comes card, which can be dropped in the one’s to e-commerce, including selection personal Mailbox, to enjoy the service at of delivery methods and pick up their address. locations.
■ In the UK, Royal Mail has trialled a ■ Nordic consumers often prefer ‘delivery to neighbour’ initiative where parcels to be delivered to a a neighbour can receive a parcel if the designated service point rather intended recipient is not at home. Initial 5305 5899 9999 9999 than the home, therefore PostNord trials revealed a 92% satisfaction rate. created “MyPack”. This service 12/14 provides inter alia delivery to 4,450 ■ In Belgium, bpost offers bpaid, a local service points within the Nordic prepaid payment card which provides a countries, longer operating hours, payment option to consumers for online accurate tracking along the entire shopping. This is especially helpful for delivery chain and SMS notification. those reluctant to use their existing cards for online purchases. The service also helps consumers to closely monitor and control their budget spending, thereby facilitating responsible spending and online trade. A seamless
service
Postal operators are present in all Enhanced performance through of the EU 27 Member States. This collaboration: network overcomes differences in languages, currencies and cultures ■ On-time delivery of the parcels to ensure e-commerce can flourish. through the EPG network in Europe Interoperability is the key to our entire has improved from 63% in 1998 to cross-border operation. 95.6% in 2012.
Our aim is to facilitate a seamless To boost overall ‘quality’ (the reliability, ■ In terms of reliability, in 2011, over cross-border e-commerce service speed and tracking) of cross-border 99.9% of the parcels sent through experience for consumers and e-commerce, postal operators have the EPG network in Europe were developed a number of solutions, delivered. For the tiny fractions businesses. including the E-Parcel Group (EPG). of parcels which were reported This network of postal operators attains lost or damaged, customers were high delivery performance standards compensated. through innovative initiatives, such as the track-and-trace system and continual ■ EPG also focuses on improving monitoring to assess performance customer service and has devised outcomes against agreed targets. a web-based customer services system linking call centres of all the EPG operators, resulting in speedy handling of customer queries around a set of performance targets. Realising Europe’s potential: e-commerce and the postal operators / 11
EPG data on time delivery Note results for 2012 only include results up to July 2012 Source: IPC
100 A truly seamless service across 90 borders requires more than simple 80 delivery of a letter or parcel. It 70 requires, among other tasks, 60 coordination between transport 50 operators, synchronised pick-up and 40 drop-off, and effective ‘last mile at 30 home’ delivery. To achieve this, the 20 postal operators work together on a 10 close and constant basis to provide 0 % On Time efficient cross-border services. 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year
So how are we building on this? Whether you are a seller or a buyer, sustainable, smart and inclusive growth there is no service provider that is better is aligned with our own commitment to European postal operators are committed connected to your community and providing competitive and convenient partners supporting the growth of individual needs – this is what European services across Europe. e-commerce. Their services range from postal operators are offering today facilitating the selling of goods, to offering and what we are committed to offering innovative payment options. Ensuring a tomorrow. quality delivery and return service and creating market-specific solutions to As mobile technologies evolve and customer needs are also top priorities. access to high-speed internet expands, the Digital Internal Market will continue At all stages of the value chain, our Did you know... extensive network provides essential to grow and our offering is developing ...that postal operators: services for e-commerce in Europe and with this trend. Therefore the European beyond. Union’s commitment to renewed, ■ Are present in all 27 EU markets and beyond Export of cross-border postal parcels Source: PostEurop ■ Have over 1.4 million full time employees
Post office EU ■ Offer more than 258 million delivery points
■ Collect from 720,000 postal boxes Pick up in the street
Sender Pick up Domestic International Receiver sorting centre sorting centre ■ Provide more than 90,000 retail
Franchised EU + Rest outlets counter of world International Post Corporation
International Post Corporation is a PostEurop is the industry trade cooperative association of 24 member association which represents the interest postal operators in Asia Pacific, Europe of European public postal operators and North America. Over the past two committed to supporting and developing decades IPC has provided industry a sustainable and competitive European leadership by driving service quality and postal communication market accessible interoperability, supporting its members to all customers and ensuring a modern to ensure the high performance of and affordable universal service. international mail services and developing PostEurop promotes cooperation, the IT infrastructure required to achieve communication and innovation by this. IPC engages in industry research, providing members with interconnectivity, creates business-critical intelligence, common development initiatives and provides a range of platforms for member opportunity to share best practices post CEOs and senior management to bringing added value to the European exchange best practices and discuss postal industry. PostEurop is also an strategy, and gives its members an officially recognized Restricted Union authoritative, independent and collective of the Universal Postal Union (UPU). voice. IPC also manages the system for Established in 1993, the 51 PostEurop incentive-based payments between postal members collectively operate 175,000 operators. With members delivering some retail counters, employ 2.1 million 80% of global postal mail, IPC represents employees across Europe and link the majority of the world’s mail volume. For 800 million customers daily. For more more information please visit our website information please visit our website
www.IPC.be. www.posteurop.org.
International Post Corporation
International Post Corporation PostEurop Avenue du Bourget 44 Boulevard de la Woluwe 34 1130 Brussels, Belgium 1200 Brussels, Belgium T +32 (0) 2 724 7211 T : +32 (0) 2 761 9650 F +32 (0) 2 724 7232 F : +32 (0) 2 771 4858
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