on Aug 5th, 2013 in Delivery & Collection | 2 comments
 

Global e-commerce sales topped $1 trillion for the first time in 2012 and they are expected to grow another 19 percent this year, according to data from research firm eMarketer.com. While North America leads the world in online sales, Asia is expected to take the mantle by the end of this year. China drives Asia’s growth and this year it should surpass Japan as the world’s second largest e-commerce behind the United States and its $385 billion in online sales.

This global boom in e-commerce has helped to fuel growth in the package delivery market, prompting the shipping giants, including the U.S. Postal Service, to jostle for shares of this market. The global e-commerce surge has also benefited American companies, who are looking to foreign customers to expand sales and revenues. Surprisingly, a number of well-known retailers only began offering international shipping from their websites a few years ago, including Macy’s, Williams Sonoma, J. Crew, and Crate and Barrel. One reason for the late entry is that shipping beyond the United States is not so simple. As a New York Times article noted last year, the problems include customs, addressing, and postal and shipping fees. In some cases, the cost to ship the package could double the total cost of the order.

Another hurdle is package returns. Even as retailers figure out how best to reach their overseas customers, they are discovering that customers find it difficult to return packages. The Postal Service recognized an opportunity to simplify that process for online retailers and later this month it will begin a market test of a new international e-commerce return service. International Merchandise Return Service will allow foreign consumers to return unwanted products purchased from American retailers’ websites back to the U.S. The service creates return labels with postage payment, allowing the buyer to print off a label and return the item through the post.

Modeled after its domestic returns service, the Postal Service expects International Merchandise Return Service to simplify international returns for customers and improve their overall experience, which should encourage even more online shopping. The Postal Service will test the service for 2 years on online sales to Canada and Australia, negotiating prices and agreements with American companies that participate.

What other ways could the Postal Service improve the international shipping experience for retailers and their customers? How else could the Postal Service tap into the global e-commerce market? Do any of its domestic services provide good templates or lend themselves to adoption for the international market?

2 Comments


I have quit a few packages sent to me monthly. They are picked up in Salt Lake City, sometime sent to Nevada, rerouted back to Salt Lake (if not sent to Nevada, they sit in Salt Lake for 3-5 days) then after approx. 7 days, they make it to my home, 2 miles outside of Salt Lake. I believe the post office has serious issues here. They are wasting so much money on shipping things to the wrong place only to ship them back. My last package was picked up 4 days ago and thru tracking I was able to see that it hasn't been logged since pick up. If I order and use FedEx, my packages arrive 2-3 days, ALWAYS. What is wrong with this picture ? (and FedEx is cheaper also). Are the employees doing unnecessary reroutes for job security ? Or ignoring the packages and kicking back ?

The idea of global e-commerce seems to be good but I don't think it would be ever seeing the light, and even if it does, it won't be there in the near future for sure. The customs and taxation policies are different in different countries and they still keep changing, especially in growing/under-developed economies. In such countries, the governments would be supporting and shielding their own local industry and would not let big-fish from other developed economies encroach their territory. Too early for eggs to hatch.

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