Cross-border e-commerce is growing rapidly at 2x the rate of domestic e-commerce. New technology-driven startups are disrupting the traditional competitive advantages of postal players in cross-border delivery. Customers now expect fast, free, and easy cross-border delivery services that match domestic delivery standards. To compete, postal organizations will need new business models and capabilities.
8. As postal organizations move away from the customer, this creates risk from more middlemen
As consolidators expand, Posts
have a smaller role in the value
chain, and no role sometimes.
ContractedNote: Transaction scenario rates based on 2016 published rates for PMI and FedEx for 2.2lb package from New York to London.
Consolidator rates from The Colography Group, February 2016; Source: Accenture Analysis.
Acceptance Line Haul Processing Customs Int’l Trans Customs
Post
$48
$25
$8
Shipping Value Chain
Leg 1 Leg 2 Leg 3
Last Mile
Consolidator→
Post
Revenue
PostConsolidator
$0
$48
$20
Customer
Cost
$16
$34
IndustryModels
Consolidator→
→
→
Traditional
Disruptive
Freight
Freight
Mail
Mail
Alt. Delivery/Post
Post
Post
Alt. Delivery/Post
8
SHIFTING POSITION
INVALUE CHAIN
POSTS ARE MOVING TO COMMODITIZED ROLES
USPS
Shipper/Retailer
FEDEX AMAZON UPS
11. 11
Most problematic pain points in cross-border
eCommerce(1)
Biggest game-changer for cross-border
eCommerce(1)
Note: (1) According to Retail Professionals Worldwide, August 2017; Source: “Key Business Drivers and Opportunities in Cross-border Ecommerce 2017”, Payvision, October 2017;
http://www.supplychainbrain.com/content/logisticstransportation/reverse-logistics/single-article-page/article/target-stores-relies-on-genco-to-manage-its-returns-program/; Global eCommerce Logistics
2018, Transport Intelligence; Accenture analysis
43%
39%
32%
28%
25%
23%
22%
16%
Logistics and delivery
Data protection
Ease of integration
Compliance with local
regulations
Cross-border payments
/multicurrency
ROI
23%
12%
12%
9%
9%
7%
6%
4%
m-Commerce
Rise in alternative
payment methods
Internet of things
50% of retailers offering
international delivery
Online marketplaces
continuing to dominate
Easier entry to
emerging markets
Greater knowledge of how to
do business internationally
China’s "One Belt One
Road" scheme
Profitability is challenging cross-border eCommerce retailers—they must compete with domestic retailers on speed and delivery prices
RETAILER EXPECTATIONS RISE
RETAILERS ARE DEMANDING MORE
Offering exchange
and returns
Pricing/costs of
products & services