Cross-border e-commerce and last-mile solutions

According to McKinsey & Company even conservative estimates project that cross-border e-commerce in goods—the fulfilment and parcel dispatch of an order taking place in a country different from the customer’s final delivery destination—will expand to around $1 trillion in merchandise value by 2030, from its current value of approximately $300 billion.

In a bolder scenario, e-commerce penetration of the total world retail market would approach today’s levels in China: more than 30 percent.

If the cross-border share of e-commerce came close to 20 percent, the overall cross-border e-commerce market could total $2 trillion in merchandise value and they also expect cross-border supply chains to change significantly.

Cross-border e-commerce parcels can travel via three different channels

The postal (or postal-parcel) channel is today’s dominant mode in shipment volume, and it is responsible for routing close to two-thirds of lightweight international parcels weighing up to two kilograms. International express shipments, which make up 5 to 10 percent of the total volume, guarantee fast delivery speeds of one or two days, high reliability, and excellent service quality and commercial-parcel operators handle the remainder of shipments.

Cross-border deliveries will continue to surge

In 2020, there were 9.3 billion cross-border orders, and 60 percent of them were intercontinental. In 2020, the pandemic affected the patterns in the flow of goods, so intraregional flows—especially in North America and Europe—rose as a result of supply chain disruptions and a shortage of transport capacity.

Current trajectories indicate that the growing prominence of e-commerce will probably raise the product mix of parcel deliveries of nonexpress commercial products to 80 percent of all flows by 2030, up from today’s share of around 30 percent.

Customers are demanding faster and more reliable deliveries

The 2017 cross-border survey of the International Postal Corporation indicated that 28 percent of European cross-border buyers expected to receive deliveries from another European country within two or three days, and 79 percent expected to receive them within a maximum of one week. Those figures were up from 25 and 67 percent, respectively, a year earlier. The 2018 survey reflected still more demanding customer expectations for delivery times. When asked what one thing postal companies should do to improve cross-border deliveries, 32 percent of the respondents chose make them faster.

This need for speed is the key reason many operators are looking to make the switch from postal-parcel to commercial-parcel deliveries. In addition, expectations for the transparency and reliability of goods for delivery are becoming more exacting. It’s now increasingly taken for granted that customers can track exactly where their goods are, for example.

Seizing the cross-border parcel opportunity

Even as commercial products gain share, cross-border shopping patterns and flows in the movement of goods will continue to fluctuate for some time. This suggests that e-commerce is far from the saturation point, both in domestic and cross-border markets, and won’t be for the next five to ten years.

By the decade’s end, companies offering a commercial standard product will surely raise their market share by offering an optimal balance between price and speed. These companies will probably stake out a winning value proposition by providing reliability and end-to-end visibility, as well as an acceptable speed for the shopper and a favorable fee for the shipper.

Last-mile options

Because customers nowadays require a variety of delivery options and greater flexibility in how they receive packages, it is crucial for the e-commerce retailers, as well as logistic providers to seek for options that will allow the end-users more options when it comes to the parcel delivery and parcel takeover. End users, depending on their lifestyles or plans for a given day, may prefer to have packages sent to their offices or dropped off at a Out-Of-Home (OOH) pick-up point. It’s important therefor for all parties involved in supply chain to understand the consignee’s preferences and act upon them.

By offering reliable granular and local tracking, time window options, and out-of-home deliveries (which are all customer requirements) they could reduce costs and achieve growth.

Smart parcel lockers to the rescue

The parcel locker system seems to benefit all parties involved in the shipment of the parcel and, although we’re still far from forgetting traditional shipping methods, this practical delivery method is becoming more and more common in different parts of the world.

Direct4.me Platform-Driven Post-Purchase Spaces are a great solution for all logistic providers that are searching for solutions that cater their consignees, while also optimising the last-mile delivery process and avoiding the problems it brings.