‘Cross-border easiness’ key success factor for delivery companies

August 22, 2016 by
Janine Nothlichs

Over 70 percent of online retailers use more than one parcel provider in order to get the best price and spread the risk. This is revealed by the latest Accenture eTailers research report titles “Diff­erentiating delivery: How to win the eCommerce battle” . And while many retailers and brands work with one primary provider, there are less and less exclusive deals in the e-commerce sector. But how can logistics companies win the battle for more clients in the competitive e-commerce environment?

Next to this development, delivery companies experience increasing competition from marketplaces like Amazon, that offer fulfilment and logistics services fort heir sellers.

Accenture lines out five key ingredients needed to be competitive as an e-commerce logistics provider:accenture_1
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1) Happy consumers:
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2) Returns impact
79 percent of eTailers place returns capabilities among the most important criteria when selecting a logistics provider. 59 percent reported that difficulties with returns are the most recurring problems in the customer journey.

3) Price intelligence
Retailers that stick with one provider often do so because of  the advantages of bulk price negotiation. Smart pricing can position a carrier in a better way.

4) Segmented features
The survey conducted by Accenture shows that there is a big complexity and diversity of services companies require. For example, larger online retailers are more interested in services like warehousing, fulfillment and onsite installation of purchases.

5) Cross-Border Easiness

Cross-border business-to-consumer (B2C) eCommerce is set to grow globally to $994bn by 2020, when it will represent 29 percent of all B2C eCommerce, predicts the report. Tailoring services has become critical for global online retailers to successfully take advantage of these cross-border opportunties. Therefore, carriers able to offe smooth and seemless cross-border delivery services will be preferred by internationally active retailers.

Global players are already investing heavily to localize and improve their cross-border services. The report states: “FedEx, for example, has purchased Bongo International, a cross-border technology provider with capabilities such as duty and tax calculations, export compliance management, fraud protection, currency services and local language interfaces. This followed UPS's acquisition of a similar company, i-parcel, in mid-2014.”

Moreover, only 26 percent of online retailers fill out the required customs documentation for customers online, a service that could clearly differenciate a carrier.

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Download Accenture’s report here

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