mail forwarders market analysis

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Mail Forwarders Market Analysis May 2013 1

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Research of mail forwarding service providers for those who order goods from the US to Russia

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Page 1: Mail forwarders market analysis

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Mail Forwarders Market Analysis

May 2013

Page 2: Mail forwarders market analysis

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Mail Forwarding

Registration on the mail forwarder’s website

Choosing goods from different online stores website catalog

Ordering goods from different shops to the mail forwarder’s warehouse

address

Parcels arriving to the mail forwarder’s warehouse

Forwarding the consolidated parcel to Russia

Mail Forwarding service includes forwarding parcels from the sender to the receiver using a supplementary transitional address.

Mail forwarder consolidating the parcels

Page 3: Mail forwarders market analysis

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Advantages of mail forwarding

Using mail forwarding service is less expensive than ordering goods directly from an online store

Some ebay.ru sellers and online stores don’t ship outside US

Mail forwarding service usually includes creating supporting documents for the parcel

Mail forwarders usually provide insurance for parcel loss or damage

Page 4: Mail forwarders market analysis

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Mail forwarders

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Description

Warehouse Oregon

Express delivery USPS

Payment methods Credit cards, bank transfer, Google Wallet*

Stores More than 10

*Commission fee is charged for every payment method (3.2% of sales price or $15 fixed fee)

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Customer feedbackGot it in a month, even no problems with EMS! Packaged very carefully. Additional package was removed. Got a postcard and complimentary sweets.

Thаnks Banderolka for the parcel delivered and the complimetary sweets! The parcel was packaged well, reached me with no damage.

…the parcel was a little damaged, but Banderolka’s package prevented the contents from being damaged.

The only disadvantage, in my opinion, is not including the payment system’s commission in the final price indicated on the website.

Banderolka continues to provide high quality service, despite clients quantity growth.

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Services

Service

Forwarding x

Consolidation x

Special request (taking photo of goods, additional package, size check etc.)

x

Assisted purchase (assistance in shopping process)

Storage x

Insurance x

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Rates

Service Rate*

Forwarding $3-8 (price of packaging materials)

Consolidation Free

Special request Depends on the request

Storage 30 days free, then $10/month

Insurance $3-100

*The rates are valid for testing period only

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Strengths and Weaknesses

Strengths Weaknesses

•Warehouse in a tax-free state•User-friendly interface•Efficient customer support•High quality packaging

•Using only USPS for express-delivery means parcel delivery in Russia through EMS only, which has very bad reputation due to delivery delays, high parcel loss rate, careless parcel handling and inefficient delivery service and customer support•The rates may change after the testing period is over•Banderolka doesn’t accept payments through Paypal system•Commission fee is charged for every payment method

Page 10: Mail forwarders market analysis

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Description

Warehouse California, Oregon, Nevada, Hong Kong

Express delivery USPS, Airmail, FedEx, TNT, DHL

Payment methods Credit cards, Paypal, bank transfer

Stores All large online stores

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Customer feedback

Very fastThanks a lot

Everything repacked properly and very carefully

The package with wrong address successfully returned!

Very professional and polite work

Failed to consolidate packages properly

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Services

Service

Forwarding x

Consolidation x

Special request (taking photo of goods, additional package, size check etc.)

x

Assisted purchase (assistance in shopping process)

x

Storage x

Insurance

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Rates

Service plan 

 INDIVIDUAL PACKAGES   

  VIRTUAL MAILBOX   

Setup fee $0 $0

Monthly fee $0 $10/month or $50/year

Processing fee per package $8.50 $2.50

Fast mail out – magazine or letter $1 $1

Consolidation savings NO YES

Consolidation fee N/A $2 per package

Free Storage 90 days 90 daysAssisted purchase– $8.50 for 10 unique items of the purchase

Page 14: Mail forwarders market analysis

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Strengths and weaknesses

Strengths Weaknesses

•Warehouses in HK and tax-free Oregon•Flexible rates•Large choice of express delivery companies

•Relatively high rates•No insurance service

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Description

Warehouse Pennsylvania

Express delivery USPS, ShopFans Express

Payment methods Credit cards, Paypal, bank transfer

Stores All large online stores

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Customer feedback

Everything is OK! Got the parcel! Packaged well! Got it in 6 days after payment!

The parcel was sent on 13th, today is 16th, and I’ve just had a call from the delivery man who said that the parcel was waiting for me. T was delivered in two hours. Packaged very well, the service is very efficient. I was delighted by the speed of delivery.

It would be very good if the delivery man called at least one hour before coming. No other disadvantages.

A little disappointed with no information about the parcel location after its customs clearance. Everything else is OK.

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Services

Service

Forwarding x

Consolidation x

Special request (taking photo of goods, additional package, size check etc.)

x

Assisted purchase (assistance in shopping process)

Storage x

Insurance x

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Rates

Service    Rate 

Processing a package less than 3lb (1.3 kg) $3

Processing a package more than 3lb (1.3 kg) $5

Consolidation $0

Additional package $3

Photo of goods $2-5

Insurance $3 for every $100 of the package value

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Strengths and weaknesses

Strengths Weaknesses

•No sales tax for garments and shoes in Pennsylvania•Simple rates•Fast delivery due to own ShopFanExpress delivery service•Efficient customer support

•The service fees become relatively high when many parcels are consolidated•The clients fill in the supporting documents by themselves

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Description

Warehouse New Jersey

Express delivery Polar Express, DHL, Fedex, USPS

Payment methods Credit cards, Western Union, MoneyGram, bank transfer

Stores All large online stores

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Customer feedback

Got the parcel. Everything is OK. Packaged very well.

Failed to get one of the purchases that was supposed to be included in the parcel. Don’t know whose fault it is.

Good rate, the parcel reached the destination with no problem. Got the responses to the emails rather quickly.

Sometimes I don’t get the tracking status change notifications. Tracking is not useful, it has only the “Parcel number” data now.

Didn’t get the parcel for 1.5 month. The customer service wouldn’t respond, the tracking doesn’t work.

Page 22: Mail forwarders market analysis

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Services

Service

Forwarding x

Consolidation x

Special request (taking photo of goods, additional package, size check etc.)

Assisted purchase (assistance in shopping process)

Storage x

Insurance x

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Rates

Service Rate 

Parcel processing $1

Consolidation $0

Storage 30 days free, then $5/purchase/month

Packaged parcel storage with «waiting for delivery payment» status

7 days free, then $10/month

Photo of goods $1

Additional package $2

Insurance $0-100

Page 24: Mail forwarders market analysis

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Strengths and weaknesses

Strengths Weaknesses

•Low rates•Large choice of express delivery companies

•Delivery delays•Parcel tracking on the website doesn’t provide information on time.

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Description

Warehouse Pennsylvania

Express delivery USPS, Meest

Payment methods Credit cards, Webmoney, RBC Money

Stores All large online stores except Abercrombie, Holister, Victoria’s Secret, Overstock, Sears, Kmart,

JCPenny

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Customer feedback

Very short period of delivery, notwithstanding Russian Post delays.

Got the parcel today. Waited for it rather long due to Russian Post workload. The parcel had been dropped several times, and its one side was badly damaged. The contents itself were not damaged due to additional package.

Was delighted with the service and customer support work.

The parcel was damaged. All the goods ordered were in the parcel.

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Services

«Full support» service. Pochtoy.com orders goods to its US address, gets the parcels, consolidates them and ships the consolidated parcel to Russia.

«Virtual address» service. The customers order goods by themselves from online stores to Pochtoy.com mailing address. The company gets the orders, consolidates them and forwards the consolidated parcel.

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RatesFull support

Service    Rate

Parcel processing $1

Consolidation Free

Package removal Free

Virtual address

Order value Commission

from $1 to $100 $10

from $101 to $500 10%

from $501 to $1000 8%

Additional services

Multi-layer film $4

Envelope $2

Photo $3

Page 29: Mail forwarders market analysis

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Strengths and weaknesses

Strengths Weaknesses

•Simple rates•No tax for garments and shoes•Assisted purchase service available•Frequent special discounts•Payment through Webmoney system is available

•No possibility to order goods from Abercrombie, Holister, Victoria Secrets, Overstock, Sears, Kmart, JCPenny.

Page 30: Mail forwarders market analysis

Comparative delivery rates table

Company Fee*

Banderolka $84.3

Shipito $76.72

ShopFans $65.9**

Polar Express $86.56

Pochtoy.com $70.15

*Delivery of one $200 parcel by USPS Express to Moscow

**The fee becomes relatively high when shipping several parcels

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Page 31: Mail forwarders market analysis

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Description

Warehouse Chicago

Express delivery USPS, DHL, FedEx, Major Service, SPSR

Payment methods Credit cards, Yandex dengi, QIWI, Webmoney, bank transfer

Stores Amazon.com, Ebay.comSpecial order from other stores is

possible.

The service of forwarding goods using a transitional address is also provided by consolidator companies , that allow to order goods from their own online catalogs.

Page 32: Mail forwarders market analysis

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Bay.ru vs Banderolka

Other large stores

Special order from

other stores

Choosing goods on Bay.ru website

Shopping cart on Bay.ru

Order to Bay.ru warehouse in the US

Shipment to Russia

Choosing goods on stores websites

Ordering from stores websites

Delivery to the warehouse in the US

Consolidation

Shipment to Russia

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Strengths and weaknessesStrengths Weaknesses

•Convenient website order interface•Many payment options•Many express delivery options

•The discounts provided by online stores may not be considered in Bay.ru catalog•There is an opportunity for secret charges due to non-transparent final fee structure•Bay.ru directly ships from amazon.com and ebay.com only. Special order from other stores may icrease the delivery period

Page 34: Mail forwarders market analysis

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Contact information

Yana Avakyan

Independent consultantE-mail: [email protected]