POSTAL E-COMMERCE : UPDATES ON COMMERCIAL SOLUTIONS & MARKET 2020 POS… · Management...
Transcript of POSTAL E-COMMERCE : UPDATES ON COMMERCIAL SOLUTIONS & MARKET 2020 POS… · Management...
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POSTAL E-COMMERCE : UPDATES ON COMMERCIAL SOLUTIONS & MARKET
- INTERCONNECT, DMP & PDDP- SHOPPER SURVEY 2019
SAPOA Postal Forum, Durban, February 2020
Louis François de Robiano 36
February 2020Head of Strategic Relations, IPC
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SAPOA FORUM- FEBRUARY 2020
Background: SAPOA Forum February 2019. Theme: Operational Readiness for e-commerce
• The operational and commercial challenges
• Introduction to commercial solutions: Interconnect, Delivery Merchant Platform (DMP) & Postal Delivered Duties Paid (PDDP)
Agenda SAPOA Forum February 2020
• Updates & developments 2019 – 2020:
• Interconnect
• DMP
• PDDP
• IPC Shopper Survey 2019
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IPC session – 13 February
SAPOA Forum - February 2020
INTERCONNECT
Updates and new developments 2019 - 2020
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INTERCONNECT
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Updates and new developments 2019 - 2020
Recap 1
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Volumes and performance 2019
Service expansion
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INTERCONNECT OVERVIEW
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What is INTERCONNECT?
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“Interconnect is a comprehensive response to meet and exceed the demands of the cross border e-commerce market, achieved through building postal solutions, streamlining processes, utilising advance electronic data and delivering high reliability and quality”
The signatories of the Interconnect agreement cooperate intensively to ramp-up the quality of all KPI’s
Interconnect contains, as integral components of the agreement, a full suite of e-commerce solutions(DMP, PDDP)
Market-driven Data richReliability focused
Quality oriented
Efficiency inducing
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INTERCONNECT OVERVIEW
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Complete package of features based on customer needs
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• Predictable transit times for cross-border deliveries including customs processes
• Reliable delivery time
• Predictable E2E fees including custom taxes & duties
• Low delivery rates
• Consistent track & trace; choice of delivery location similar as domestic offer, reliable return process, rapid response customer service
• Simple international shipping options with consistent features
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INTERCONNECT OVERVIEW
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Components in line with customer & operation needs
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End-to-end tracking & Service Reliability
Return Services
Delivery ChoiceData Capture@Source
Harmonised Label Seamless Customs
Leg 1 performance
Customer Services
“a d a t a r i c h, f u l l y f e a t u r e d e n d – t o – e n d n e t w o r k”
E-Buyer Data Capture ITMATT
EMSEVT V3
Leg 2 performance Leg 3 performance
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INTERCONNECT
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Achievements - Performances 2018 / 2019 – Standard Packets
Overall quality achievement of the Interconnect network after 2 years of performance upgrading activities, on packets:
Source: IPC BI tool. Performances of Interconnect Standard Packets (75% of the total Interconnect traffic)
KPI January 2018
October 2019
Improvement
End-to-end service performance
45 % 88 % + 43 %
EMSEVT V3 event compliance
76 % 93 % + 17 %
Data transmission timeliness
75 % 86 % + 11 %
EMSEVT V3 data compliance
37 % 77 % + 40 %
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INTERCONNECT
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Achievements - Volumes 2018 - 2019
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Volumes
Interconnect monthly volumes continue to grow steadily:
• 3 million items in January 2018
• 7 million items in December 2019
• Total of 60 million items in 2019:
• 49 million packets• 11 million parcels
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INTERCONNECT
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Membership and Expansion
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30 members (2019)
Österreichische Post AT bpost BESwiss Post CHCzech Post CZDeutsche Post DE Postnord Denmark DKOmniva EECorreos ESPosti FILa Poste FRRoyal Mail GBELTA GR Hrvatska Posta HR Magyar Posta HUAn Post IEIceland Post ISPoste Italiane ITLietuvos Pasts LTPost Luxembourg LULatvia Post LVMalta Post MTPost NL NLNorway Post NOPoczta Polska PLCTT Portugal Post PTPosta Romana ROPostnord Sweden SEPosta Slovenije SISlovak Post SKUSPS US
Purpose is to achieve as soon as possible a global integrated commercially competitive postal e-commerce network, to protect the postal market shares
The Interconnect network expanded initially on the key trade lanes in Europe and USA
The Asia market generates over 65% of the outbound traffic and is an obvious target for expansion of the network. But all posts in the world shall see significant cross-border e-commerce volume growths in the short term and can benefit of the network
Posts currently exploring possibilities to join the network:
China Post
Korea Post
Singapore Post
Russian Post
Australia Post
New Zealand Post
Emirates Post
Saudi Post
Turkey Post
Israel Post
Cyprus Post
Bulgarian Posts
Ukrposhta (UA)
Kazpost (KZ)
Georgian Post
DYNAMIC MERCHANT PLATFORM(DMP)
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INTERCONNECT COMMERCIAL
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Dynamic Merchant Platform (DMP)
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DMP
Landed Cost Calculator
Regulatory compliance
Delivery Choice
Document Management
Notifications
Tracking
Harmonised Label
Returns
Why?To facilitate the integration of e-commerce postal solutions at e-retailers and to enable e-buyers to select these
What is it?
• A suite of top of the art postal solutions embedded within the shopping carts of e-retailers
• Each API can be marketed and implemented independently, allowing for optimal flexibility
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INTERCONNECT COMMERCIAL
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Dynamic Merchant Platform (DMP)
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DMP
Landed Cost Calculator
Regulatory Compliance
Delivery Choice
Document Management
Notifications
Tracking
Harmonised Label
Returns
Purpose is being able to identify restricted / prohibited items prior to sale to a consumer. This is priceless: “Only ship the right product to the right place”
This service provides the E-Seller website with real-time compliance checks (product restriction and prohibition) based on the E-Seller product that will be sent abroad during shopping. To obtain the restriction and prohibition code information, the E-Seller places a real-time API call to the IPC API Portal, containing the code from the classification and the sending and destination country codes. The process prohibits the E-Buyer in buying and shipping product to the specified origin and destination countries
……………………………………………………………………………………………………………………………………………
Via the IPC “Translation Engine”, customers determine where / when to collect their items by choosing from delivery locations available domestically
The data source can be a remote web service owned by the inbound post, or an internal database hosted at IPC (referred to as the Translation Engine Light). This feature is currently available for 16 destination countries and quickly expanding
……………………………………………………………………………………Missing documents (e.g. invoice, proof of payment, …) are a main cause for delaying customs clearance process at destination posts. This API
• provides an overview of the documents that are linked to an item id
• allows to upload missing documents on item id level which are received from the E-Seller, and retrieval of specific documents by the parties that require them
…………………………………………………………………………………..This feature offers notifications of delivery status of the packets (by email or text message) to e-retailers & customers at various stages of the delivery process
It is a custom built application that can be enhanced with numerous customisable web page templates, email templates, etc.
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INTERCONNECT COMMERCIAL
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Dynamic Merchant Platform (DMP)
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DMP
Returns
Tracking
Harmonised Label
(HL)
Landed Cost Calculator
(LCC)
Regulatory Compliance
Delivery Choice
Document Management
Notifications
E-Seller/Buyer can track items shipped using the IPC tracking platform. Tracking is based on an S10 item id, or an RFID linked to an S10. Tracking is at item level but also possible for a bulk of items with a batch process
The Tracking feature works worldwide for all networks (PRIME, UPU Parcels, KPG, Interconnect / EPG, EMS, RFID tracked items)
……………………………………………………..........................HL ensures uniformity using standardised elements, icons and layouts based on the existing standard barcode. It reduces over-labelling and facilitate delivery across networks. Members can print labels in an easy way
Different variants of the HL have been designed to cover requirements for package, parcel, and have integrated forms CN22 or CN23 to facilitate customs clearance
……………………………………………………………………………..The LCC provides the E-Seller website with the outcome of a real-time calculation of Tax Rate, Duty Rate, Tax Payable and Duty Payable during shopping and a standardised product description (classification of E-Seller products is part of the solution). LCC takes actual trade agreements and duty and tax thresholds into consideration and can be implemented as in in-cart solution
It enables consumers to be informed and (with PDDP) to pay for all the costs in advance, which significantly result in repeated ordering and positive referrals
45+ countries in the system in 2019. 130 countries expected in 2019
………………………………………………………………………………This is an easy to use return process for cross-border e-commerce items. E-retailers get a priority postage-paid return service either in the packet or through the internet. E-customers return goods to e-sellers free of charge. Returns are accepted at postal counters without payment. The feature also supports the provision of customs’ documentation if needed
This service his currently available in 30+ countries and applies to all products (KPG, PRIME, EMS, UPU Parcels, Interconnect/EPG)
POSTAL DELIVERED DUTIES PAID (PDDP)
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POSTAL DELIVERED DUTY PAID (PDDP)
What is It?
• PDDP supports payment of taxes, duties and handling charges at the point of purchase (e-seller’s website), making the payable amount available to the destination post for payment to customs
Status January 2020
• 26 Postal Operators subscribing today. The number will grow soon with additional Interconnect Posts subscribing. PDDP participants have identified 6/7 target Posts to expand PDDP services with the purpose to reach 90% of total cross-border postal volumes
• Official launch date is end June 2020
• By end June PDDP participants will be capable to process PDDP inbound volumes based on the PDDP pre-advise which contains all the data elements part of PDDP transaction.
• PDDP participants are currently working on their inbound readiness dates and on the commercialization of PDDP service on the outbound side
• IPC and Posts are working on the integration of PDDP services within the top website software providers, Prestashop, Magento, Shopify, etc…..
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Participation & Inbound readiness
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POSTAL DELIVERY DUTY PAID
Why is this important, particularly now?
Regulatory & policy trends
• Cross-border e-commerce is increasingly being brought into domestic taxation, driven by non-discriminatory competition and concerns around lost revenue. Examples: • End of de minimis • Political pressure on Terminal Dues• Increased focus on consistent and effective application
and collection of VAT and duties• More regulation around major online market places
Customer experience & Market response
• Customers, buyers and sellers alike, are increasingly less satisfied with current (customs/DDU) performance and unclear processes. Upcoming regulation causes further uncertainty.
• Integrators accelerate their move from inefficient Delivered Duties Unpaid (DDU) to DDP-like solutions. Posts lag behind in this process
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Taxation: a rapidly evolving area
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CUSTOMS
• 16% paid customs duties
• Paying customs in advance leads to higher consumer satisfaction
• 5% felt that customs cost too much
• 64% felt that customs took too long
Source: IPC Shopper Survey 2018
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IMPORTANCE OF DELIVERY ELEMENTS
Information about delivery charges is most important (Shopper survey 2019)
Question: How important are each of the following to you when shopping online?
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POSTAL DELIVERY DUTY PAID
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High-level overview of the solution
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Note: Postal DDP is currently in concept phase – changes to solution are possible
eBuyer
MerchantShopping
CartShipping Module
Landed Cost Calculator
Payment Platform
Receiving Post
Destination Customs
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1 The e-buyer pays in 1 transaction the following amounts:• Price of goods• Shipping• Taxes• Duties• Surcharges
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2 The Payment platform transfers to the e-seller:• (+) Price of goods• (+) Shipping• (-) Payment platform charges
33 The Payment Platform transfers to the Receiving Post:• Taxes• Duties• Surcharges
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4 The Receiving Post will transfer actual taxes and duties. Frequency of payments to be agreed between Receiving Posts and Customs
Financial flows
Payment Module
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IPC CROSS-BORDERE-COMMERCE SHOPPER SURVEY 2019Key Findings
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INTRODUCTION
Online survey carried out in 41 countries
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CONSUMER PREFERENCES
Selected findings
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DELIVERY LOCATIONS USED IN PAST YEAR
• Home delivery was top in most countries
• Many national variations
(e.g. Post Office highest in Russia, parcel locker highest in Estonia, Workplace highest in Asian markets)
66% had used home delivery in the past year
Question: Considering your online shopping experiences of the past 12 months, where have your parcels been delivered to?
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SUSTAINABILITY PREFERENCES
• 1% of respondents had previously paid extra for sustainable packaging and delivery before
• However, sustainable packaging & delivery is very important to consumers, as shown below…
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Sustainable packaging and delivery is increasingly important
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Question: To what extent do you agree with each of the following statements on the topic of packaging and sustainable (carbon-neutral) delivery??
MOST RECENT CROSS-BORDER E-COMMERCE PURCHASEProduct profile & Delivery experience
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REASON FOR PURCHASING CROSS-BORDER
Product price is the key driver, especially in markets buying a lot from China
Question: Why did you purchase this item cross-border rather than domestically? Please select all that apply
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COUNTRY OF ORIGIN
• When looking at all 41 survey countries, China (39%) was top, followed by the US (14%), UK (10%) and Germany (9%)
• When looking at the 25 trend countries that have been in all four years of the survey, has China’s growth peaked?
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China is the clear market leader
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Question: Please specify the country from which you bought this most recent online cross-border purchase.
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PURCHASING FROM CHINA IN THE FUTURE
The impact of adding a €10 / $10 fee
• If postal rate changes or tax / customs changes increased the price of a Chinese purchase by €10 per item, this would have a significant impact…
Question: In future, there may be higher taxation on Chinese imports. If such changes increase the cost of your purchases from China by €10 per item, would you…?
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E-RETAILER USED
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Amazon is the leader, with other marketplaces also performing strongly
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Question: Please identify which retailer you bought this particular purchase from
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PRODUCT WEIGHT AND VALUE
86% weighed up to 2 kg
Question: What was the approximate weight of this particular purchase? Please specify the approximate cost of goods within this particular purchase.
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DELIVERY COST
• Free shipping ranged from 86% in Russia to 37% in Iceland
• AliExpress is the e-retailer using free shipping the most
63% of cross-border purchases were delivered for free
Question: Please specify whether the shipping costs (in currency paid) for this particular purchase were…
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DELIVERY PROVIDER
• Lower postal share than previous years due to improvement to question
• Postal share ranged from 15% (Indonesia) to 78% (Brazil)
51% of cross-border purchases were delivered by the post
Question: Was this particular parcel delivered by…
49%
2%
9%
5%
4%
3%
2%
10%
4%
13%
UPS
FedEx
DPD
National Postal Operator
Other courier
GLS
DHL
Post from another country
Delivery by e-retailer
Don’t know
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DELIVERY SPEED
31% had to wait 15+ days for their parcel – with slow delivery to South America
Question:How long did it take, from buying the product online until the order was delivered?
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CUSTOMS
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14% paid customs for their most recent cross-border e-commerce purchase
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Question: Did you have to pay customs duty / customs clearance fees on this particular purchase?
• Customs was highest in Iceland (75%), India (55%) and China (52%) – and Lowest in EU states
• 75% of responders were made aware of customs fees pre-purchase
• 48% paid customs at the point of online purchase
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RETURNS
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6% returned their cross-border e-commerce purchase
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Question: Did you return this particular parcel?
• Returns remain consistently low for cross-border purchases across all years of the survey
• Cross-border returns were highest in India (32%), Indonesia (14%), US (12%) and China (11%).
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JOINING THE 2020 IPC SHOPPER SURVEY
Specs & conditions:
• Cost varies by number of interviews (250 / 500 / 1000) and if a research agency is available in the country
• Survey cost available on request
Outputs:
• Overall Report for all countries. Exhaustive report (120+ pages) with detailed information on all countries in the survey
• Specific Country Report: In-depth analysis into the country, in a 50+ page country report
Timeline:
• Agreement confirmed by July 2020
• Interviews conducted in October 2020
• Reports available by Christmas 2020
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Taking part in the upcoming survey
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