The future of parcel delivery in Europe and beyond

Werner StenggEC, DG MARKT, "online & postal"E-Trade Summit, Brussels, 2 October 2014

The context

Source: European Commission

E-commerce:Major obstacles to cross-border trade, separated by

retailers(% of retailers who agreed that the obstacles mentioned are "fairly important" or "very important"

E-commerce:Better cross-border parcel delivery as key enabler for further

growth

Source: European Commission

Greater choice of delivery options

Lower delivery charges,

in particularfor SMEs

Improved informatio

n and tracking

Simpler return options

User-friendly, affordable and easily accessible delivery

services

Information gaps

E-shopperE-retailer

DeliveryCross-border

Cross-border

Domestic

Domestic

“I wonder where and when my package will arrive…”

“What can I expect from the express delivery that I just ordered?”

“Will the delivery operator refund me when a parcel is lost or damaged in transit?”

6

“What delivery options do I have?”

Source: CE, 20136

Service gaps

E-shopperE-retailer

DeliveryCross-border

Cross-border

Domestic

Domestic

“Why can’t I choose another supplier for the delivery service?”

“I wish I could offer tracking to my foreign customers”

“Why is cross-border delivery twice as expensive as domestic delivery?”

“I would have preferred evening delivery but it is not available on the website…”

7Source: CE, 20137

Performance gaps

E-shopperE-retailer

DeliveryCross-border

Cross-border

Domestic

Domestic

“My package is delayed. It should have been here days ago”

´”I was at home all day, only to find a slip in my mail box saying that I wasn’t there at the time of delivery.”

”I get so fed up with the complicated procedures for filing complaints about delivery.”

8

”My parcels were not picked up today.”

What does the European Parliament think about this?

Own initiative report February 2014

• Notes cross-border weaknesses in competition between delivery operators in some Member States and deplores the lack of transparency on the pricing conditions and performance of the services concerned

• Considers more transparency and better and more readily comparable information on available delivery options, prices and conditions to be paramount for consumers

Own initiative report February 2014• Notes the significant gap between consumer expectations

and the availability of convenient, innovative services such as relay points or parcel kiosks, or terminals, round-the-clock services available at any time, track-and-trace solutions, consumer-friendly delivery places and times, or easy return policies

• Stresses that more affordable delivery options for consumers and sellers, SMEs included, are imperative

Own initiative report February 2014

• Calls on the Commission to create platforms for cooperation and information exchange between delivery operators in order to promptly address the existing gaps in the EU delivery market in terms of innovation, flexibility, stock management, transport, collection and return of parcels, while respecting EU competition law

The Roadmap

"A roadmap for completing the single market for parcel delivery by mid-2015"

• Increase transparency and information• For consumers (characteristics, costs)• For e-retailers (availability, performance)• For regulators (monitoring)

• Improve the availability, quality and affordability of delivery solutions

• Enhance complaint handling and redress mechanisms for consumers

Examples of actions

TRANSPARENCY• Understandable information on delivery and

return options on websites• Better information for (small) e-retailers• Collect relevant market data on domestic and

cross-border parcel flows

Examples of actions

IMPROVED SERVICES• Interconnect information systems to allow for

data exchange in a multi-operator environment (e.g. T&T, labelling,…)

• More effective returns solutionsCOMPLAINT HANDLING• Better co-operation with regard to complaint

handling

Example: IPC e-Commerce Interconnect Programme

• Enhanced lightweight product, incl track and trace

• Priority postage-paid cross-border return service

• Flexible delivery options (lockers, retail points, etc.)

• Improved customer service (interlinked service centers)

• Harmonised labeling concept

Example

• Design and development of initiatives to support the growth of e-commerce via better functioning parcel delivery systems in Europe

• (feasibility study, WIK)

• http://ec.europa.eu/internal_market/post/doc/studies/20140828-wik-markt-support-e-commerce_final-report_en.pdf

Study:

Information platform on delivery services E-commerce scoreboard on delivery and price performance Delivery aspects in e-commerce trust marks Improve parcel services in rural areas Interoperability of cross-border delivery operations Methodology to measure transit time of cross-border

parcels in Europe

Initiative 1: Information platform on delivery services

• Delivery operators to develop and publish a common agreed terminology for describing the operators‘ delivery services to all destinations.

• Such (open) data would enable intermediaries (e.g. parcel brokers) or others (e.g. e-commerce associations, chambers of commerce) to develop additional information platforms and specific applications for e-retailers (e.g. search or comparison tools).

Initiative 1: Information platform on delivery services

• Data covered: operators' services and terms, detailed information of origins and destinations offered by an operator, standards and options for collection and delivery, (expected) transit times by origin/destination, restrictions on weight, format, and forbidden goods, and tracking capabilities.

• [Commission: consider legal obligations to ensure open data about service offerings, consider promoting or funding the development of such capabilities.]

18 months to make progress…

• Delivery operators• E-retailers• Member States & regulators (ERGP)• European Commission

Some challenges…• How to engage and "connect" stakeholders? (E.g. retailers,

consumers, alternative postal operators, other service providers)• To discuss and validate problems and needs• To (jointly) develop solutions

• How to find the right balance between "co-operation" and "competition"?

• How to measure progress?• What to do if progress stays below expectations

Let's stay in touch!