Trade without borders
Manufacturers and online retailers open up new markets
In addition to the traditional parcel services market, the market for express deliveries is also profiting from cross-border e-commerce. McKinsey reports that more than 120 million international express deliveries – in other words, shipments with guaranteed delivery the next day – are internationally shipped to private individuals located overseas on an annual basis. The potential for growth is enormous. Not only large e-commerce players such as Amazon or Alibaba, but also smaller newcomers have multiplied their sales within just a few years.
Rising demands on quality and service expectations
The shift from B2B to B2C is bringing massive market change, in addition, start-ups increasingly compete with large logistics companies. The consultants believe that express service providers must adapt shipment sizes, prices, sales and contracts to the new online retailers and manufacturers. “The e-commerce business requires express service providers to carry out a balancing act,” Netzer notes. “On the one hand, they must be able to deal with considerable price pressure compared to the traditional B2B business. On the other hand, the consumers are the ones driving the costs – especially with lower delivery coverage in rural areas, as well as increasing demands on quality and service expectations,” he continues. Today’s customers expect deliveries to be made within timeframes they can select, 24-hour customer service and easy return options.
Text by Claudius Semmann