Logistic solutions: ship global, deliver local
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The e-commerce 15 conference in Vilnius highlighted the rapid growth of cross-border e-commerce in Europe, with a 16.7% increase in sales for 2014 and strong forecasts for continued expansion. It addressed challenges such as diverse online payment methods and varying consumer expectations across different countries, emphasizing the importance of tailored delivery solutions. The conference also showcased the DPD group's extensive parcel delivery network and their strategies to meet the evolving needs of e-retailers in the cross-border e-commerce landscape.
Logistic solutions: ship global, deliver local
- 1. E-commerce 15 Conference Vilnius – 19.03.2015 Ship global, deliver local
- 2. Cross-border e-commerce, a booming but challenging market 01/26/2015Ecommerce 15 Conference Lithuania 2
- 3. Ecommerce 15 Conference Lithuania 3 Who we are Everyday we are moving 1 million B2C parcels, delivering them across Europe, and our volumes of cross-border e-commerce keep on growing 19.03.2015
- 4. B2C e-commerce sales in 2014 (billion) €425.5 B2C e-commerce sales growth rate in 2014 +16,7 % 2.9 Number of B2C e-commerce parcels (billion) % cross-border e-commerce sales 14% Estimated number of active B2C websites 645,000+ Ecommerce 15 Conference Lithuania 4 Source: Ecommerce Europe What we observe is not only the fantastic growth of e-commerce in Europe…. 19.03.2015
- 5. Ecommerce 15 Conference Lithuania 5 Source: Ecommerce Europe, 2014 report % of B2C cross-border purchase orders …but also that cross-border e-commerce is gaining ground in most of the European countries… 0% 10% 20% 30% 40% 50% 60% 70% 2012 2013 19.03.2015
- 6. 377 407 436 462 69 83 99 116 2015 2016 2017 2018 Ecommerce 15 Conference Lithuania 6 Source: EMOTA, 2013 …and this trend will continue in the coming years. European e-commerce market forecast (in € Billion) 20%15% Cross-border : average growth / year +20% Domestic : average growth / year +8% 19.03.2015
- 7. 5% 10% 11% 11% 12% 14% 15% 18% 29% 29% 32% 0% 5% 10% 15% 20% 25% 30% 35% Estonia Finland Germany Spain France EU average Netherlands Latvia United Kingdom Poland Lithuania Ecommerce 15 Conference Lithuania 7 Sources: DPDgroup internal market research based on 2013 data % growth of cross- border B2C export parcels in 2013 Consequently, exports of B2C parcels have boomed 19.03.2015
- 8. “In my opinion, cross-border e-commerce is one of the most important current trends in retail. However, many shop owners underestimate the related time-consuming work and the problems that appear when one enters a foreign market.” Ecommerce 15 Conference Lithuania 8 Henning Heesen, Cross-Border E- Commerce Specialist and Board Member at Salesupply AG (source: Ecommerce Europe) However cross-border e-commerce is challenging 19.03.2015
- 9. Ecommerce 15 Conference Lithuania 9 People pay their online shopping differently across Europe 6% 85% 25% 89% 85% 23% 94% 37% 90% 47% 38% 15% 47% 21% 55% 35% 15% 16% 11% 12% 7% 6% 8% 10% 20% 1% Poland France Germany Ireland Italy Netherlands Spain Sweden UK Online Payment methods across Europe Card COD Direct Debit Direct Transfer E-Wallet Invoice SMS Sources: Ayden Report 2013, bank of Poland 2011 19.03.2015
- 10. Ecommerce 15 Conference Lithuania 10 Cross-border e-commerce landscape • Germans return nearly 1 parcel out of 3… even more when it comes to shoes and clothes • Nearly 10% of French are not at home whilst knowing they have ordered a delivery at home • You can deliver a parcel to a neighbour in the United Kingdom in case people are not at home • In Poland recipients like to pay at reception 19.03.2015 Contrast between countries in usage and expectations on delivery
- 11. Ecommerce 15 Conference Lithuania 11 On cross-border ‘’Diversity’’ is more important than ‘’Price’’ 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Wide range of different delivery service options with different price levels Limited range of delivery service options but at a low costs Domestic Cross-border Note: % e-retailers that have answered the question ‘’How important to your business do you consider the following features of delivery services?’’ with ‘’somewhat important’’ or ‘’very important’’. Source: Copenhagen Economics, E-retailer survey E-retailers expecting wide range of service and reliability 19.03.2015
- 12. The solution is delivering the local way 01/26/2015Ecommerce 15 Conference Lithuania 12
- 13. Ecommerce 15 Conference Lithuania 13 Customer Case 1 : looking for the best cost-effective solution for delivery Expanding from France to Belgium, Netherlands and Germany, this e- retailer was looking for a simple way to deliver abroad, keeping the same promise to its customers. DPD’s Pickup network was the most suitable solution. A fashion e-retailer was offering free delivery to customers all across Europe.
- 14. Ecommerce 15 Conference Lithuania 14 Customer case 2 : looking for faster transit time and Track&Trace Faster lead times and Track & Trace began to be key to keep customer shopping sending their pictures to be printed. DPD CLASSIC EUROPE was the best solution for its exports. Our photo printer customer realized that for its business that offering delivery was not enough
- 15. Ecommerce 15 Conference Lithuania 15 Customer Case 3: Looking for a provider addressing one’s specific needs DPD’s solution for this collection requirement was the most flexible A food e-retailer was requesting collection of used capsules at e- shopper’s home in Belgium and Pickup parcelshop in Portugal.
- 16. We are international delivery experts 16 Number of parcels we deliver every single day 3 million Revenue in 2014 (billion) €4.9 864 Number of parcels delivered in 2014 (million) Volume growth 10,7% Number of delivery experts 46,000 Ecommerce 15 Conference Lithuania 19.03.2015
- 17. 1,5 1,7 3,3 3,5 We are ahead of the competition and continue to grow across Europe No 1 for domestic parcel delivery across Europe 11% market share in Europe 47% revenue growth in 5 years 11% 3.4 3.7 4.1 4.4 4.9 Combined 2013 revenue for domestic parcel delivery in € (billions) DPDgroup revenue in € (billions)% of Courier Express Market by volume Source: DPDgroup internal marketing research, 2013 data DPDgroup DHL Paket GLS TNT 17Ecommerce 15 Conference Lithuania 19.03.2015
- 18. Pickup network The ultimate convenience for your customers 18 Number of Pickup points across Europe as of January 2015 More than 16,000 6* Number of opening days More than 6,000 % of the European population who has a Pickup points in less than 15 min drive away 95%* Number of Pickup points planned for 2015 * Belgium, France, Germany, Luxembourg and the Netherlands Ecommerce 15 Conference Lithuania 19.03.2015
- 19. Our European Pickup network The network offering the best coverage in Europe 100 150 480 1 000 Network in 2014 Network in 2015 Network in 2016 Number of Pickup points: 2014: 16 000 2015: 22 000 2016: 26 000 19Ecommerce 15 Conference Lithuania 19.03.2015
- 20. Predict The ultimate flexibility for you and your customers 20 Efficiency Delivery in a specific time window means there’s a higher chance we can deliver first time round Convenience It’s easy for customers to change their mind, and find a more convenient time Peace of mind Your customers always know when their parcel is going to be delivered Ecommerce 15 Conference Lithuania 19.03.2015
- 21. Predict 1 hour time window for 20 countries in 2015 January 2015 Q1 2015 Q2 2015 21Ecommerce 15 Conference Lithuania 19.03.2015
- 22. Ship global, deliver local 22Ecommerce 15 Conference Lithuania Complementary delivery solutions High flexibility of services for consignees 19.03.2015