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Posts can profit from cross-border e-commerce – IPC

Deutsche Post DHL

Cross-border e-commerce offers massive opportunities for postal operators to expand their parcelbusinesses, while social media and mobile technology are two key growth drivers, according to a

senior industry expert.

The €350 billion postal industry could see a 50% fall in mail revenues by 2015 while otherrevenues could rise 10% in partial compensation, Jane Dyer, Director Markets & Communicationfor the International Post Corporation (IPC), told several hundred executives and managers at thisweek’s European Postal Services conference in London, which was organised by Marketforce.

The €133 billion express and parcels market, however, offered substantial growth potential ase-commerce increased the volumes of B2C parcels, she pointed out. This market is currentlydominated by six major players (UPS, FedEx, DHL, TNT, DPD/GeoPost and GLS) with a combined marketshare of about 49%. But the market structure varied considerably in regional terms.

Global e-commerce is predicted to grow from $386 billion in 2009 to $536 billion in 2012, risingfrom about 5% of overall retail sales towards the 10-15% level, Dyer pointed out.

A key trend in the next few years would be the growth of cross-border e-commerce as barriersfell, she predicted. The main demands from customers buying from a foreign seller would be lowshipping prices, a clear delivery date, integrated tracking, pro-active notification of delivery,and a simple returns process.

For Posts, there was also the opportunity to move up the e-commerce value chain with a range ofservices starting from website design, customer services and online marketplaces to paymentservices and a full range of transportation and distribution services, Dyer said. “Posts arealready starting to move up the value chain. They can earn a lot more money doing that,” shecommented.

Other key factors would be the development of social media, led by Facebook, and mobile internetaccess through smartphones, she added.

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