RETHINKING E-COMM DELIVERY IN TIMES OF COVID-19

RETHINKING E-COMM DELIVERY IN TIMES OF COVID-19

According to Apex Global Parcel Delivery Market Insight Report 2020, the global parcels market was almost US$430bn in 2019, up from just under US$380bn in 2018. This report was researched during January and February 2020, before COVID-19 had spread globally and become a pandemic. In the last couple of weeks, views on the impact of the virus on the global economy and online retail have changed rapidly.
Current expectations are that:
– Global GDP will fall significantly in Q1 and Q2, with a recovery in Q3
– Online retail has benefitted from large-scale substitution of purchases from physical stores, many of which are now closed. However, this is increasingly likely to be offset by people reducing non-essential purchases.
Asia Pacific is the largest regional parcel market by value, accounting for around 42% of the global market. North America and Europe together represent a little over 50% of the market.
China is the key growth market, representing almost 62% of the Asia-Pacific regional total by value. Chinese volumes reached 64bn in 2019.
The US is still the largest country market in value terms, although China has surpassed it in volume. In Europe, Germany remains the largest market with Italy and the UK has been the fastest-growing of the main countries (8.5% and 7.1% CAGR respectively).
Online retail is the main driver of growth in parcel delivery volumes.
– Global online sales were in excess of US$3.3trn in 2019, having grown at a rate of 22% per year.
– The largest online retail country markets are the US, UK, China, and Japan.
– China has had online retail growth of more than 33% per year.
Growth is high in both emerging and developed economies.
Globally, online accounts for slightly over 10% of total retail sales, up from around 5% in 2012.
The surge in delivery demand has pushed a lot of businesses to think about the importance of delivery and how the delivery became almost the most important link between companies and their end-customers.
The rising demand for reliable delivery services has caused an added strain on postal operators when dealing with the last-mile problem.
The COVD-a9 Pandemic has just speed up things.
E-Commerce has evolved into a $2.8 trillion global market where increasingly the default demand from customers is that they ‘need it now’. They want faster, cheaper delivery with greater control over their experience. The need to deliver more parcels faster and at a lower cost to meet customer expectations is increasing the pressure on retailers, delivery providers and their wider supply chain as the “last mile” – the final phase in the delivery process when the parcel reaches the end-customer – is the most expensive and time-consuming step of the fulfillment process.
Driven by B2C growth, the Courier-ExpressParcel (CEP) market is expected to increase at a CAGR of 5.78% between 2016-2020 to reach $343 billion. Mobile commerce is expected to reach $693 billion by 2019, accounting for 21% of the entire eCommerce market, while 89% of retail, manufacturing, and logistics firms agree that eCommerce is driving the need for faster delivery.

Different companies have responded in different ways. The challenge to build alternative delivery models to provide same-day delivery services while cutting down the costs and maintaining or even improving customer satisfaction is what drives forward at Parcel Universe. As a forward-thinking company we have created a platform available to almost every business.  We are not taking the delivery to end-users for granted. We believe that the last mile solution businesses choose has a direct effect on the image of the company and has the main impact on future customers buying decisions and brand loyalty. That is why we are not competing with 3Pl experiments providing a taxi-like services fulfilling the delivery orders. We are willing to work with customers from different industries to understand the unique specifics of a business and to provide a unique delivery solution based on the specific customer needs.  We are confident that we could build tailor-made, easy to integrate solutions that will offer increased control on the whole logistic system, create new revenue sources and introduce a new client to existing business while cutting the delivery costs and optimizing the logistics workflow, offering to connect the 3PLs or using business`s own employees.

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