Cross border: The disruptive frontier
July 24, 2019
July 24, 2019
Cross-border growth is 2x the rate of domestic eCommerce, but the ability to control market share is declining. New technology-driven startups, pricing and innovative supply chains are stealing a march on postal players’ competitive edge.
Customers expect cross-border delivery to match domestic services: fast, free, trackable, and easy returns. To compete, new business models and capabilities are required.
Cross border in numbers
20%
of global e-commerce is cross border.
29%
compound annual growth rate for global e-commerce.
84%
of Irish consumers buy online from overseas – more than any other country in the world.
To compete, new business models and capabilities are required. Taking action can help postal organisations win in the cross-border delivery race.
The traditional delivery space is being disrupted by new, asset-lite entrants who can serve customers with what they want, when and how they want it. These start-ups and innovation-led businesses have digital capabilities at their core and can adapt to meet changing customer demands at speed.
Postal players must compete more effectively in this new, disruptive world. Cross border deliveries are growing exponentially, technology is now an essential enabler and alternatives do exist for those post and parcel organisations that want to reinvent their business models.
To take advantage of cross-border, post and parcel organisations must update their capabilities to:
Customers want end-to-end tracking, fast, low cost/free deliveries and control.
Traditional, democratic practices are slow, inflexible and disassociated from commercial outcomes—inappropriate for a dynamic digital world.
Real-time customs risk assessments and fast-track packages need to take advantage of the latest technologies.
Cross-border success will be dependent on post and parcel organisations adding new product portfolios and services that offer eCommerce customers the experience they desire. By enabling new business models, improving cross-border systems and introducing smarter returns, opportunities in the cross-border space are endless.