Postal Services Key to Booming e-Commerce Market

Postal operators, which have been facing declining mail volumes in the past few years, have the potential to grab a major share of the world's booming cross-border e-commerce market. However, they will have to adapt to rapidly changing needs and expectations of e-retailers and their customers.

Postal operators, large e-retailers discussed key delivery requirements at AMS
Postal operators, large e-retailers discussed key delivery requirements at AMS

This precondition, senior executives from leading postal operators were told during the International Post Corporation (IPC) Annual Conference held recently in Amsterdam. Senior executives of leading e-retailers, who listed some key delivery requirements for large e-tailers, also attended the event.

“The posts are the only network conceived with the customers’ home in mind,” said Michael Indresano, Vice-President, Amazon Transportation Services, in his keynote speech, noting that: “The ideal state of postal delivery would be a 365-day a year delivery service, including 24h access, harmonised label and full visibility.”

Enormous growth potential of e-commerce traffic
Ricky Xue, Senior Director of Cross-Border, Cainiao Network of Alibaba highlighted the cooperation with posts throughout the world and the importance of full-visibility throughout the e-commerce delivery process. “There is a lot of potential for reinforced cooperation between e-retailers and posts when it comes to understanding the needs of end-receivers,” Xue pointed out.

Faster adaption to changing demands is key
IPC CEO, Horst Winklbauer, said that despite fast growing e-commerce traffic, online sales only account for 8.6% of total retail showing the tremendous growth potential of e-commerce. "For posts to be able to play their role in the e-commerce landscape, we have to adapt to rapidly changing needs and expectations of e-retailers and their customers."

International Post Corporation is a cooperative association of 24 member postal operators in Asia Pacific, Europe and North America.

Nol van Fenema

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