Brussels, Belgium, 10.02.2016

PostEurop welcomes a recent study by Copenhagen Economics, a leading economic consultancy, which found that there is growing confidence in the dynamic EU e-commerce market, with a positive spill over into the European delivery sector. The report shows that the price of parcel delivery is driven by a number of supply and demand factors, and the price online shoppers pay for cross-border parcel delivery does not reflect the prices charged by delivery operators.

European national postal operators deliver millions of parcels a day and play a key part in the delivery sector. They are actively contributing to the success of a well-functioning, developing e-commerce market by providing affordable, high quality delivery services across Europe. To feed into the debate on cross-border parcel delivery, as part of the European Commission's "Digital Single Market Strategy for Europe [1]", PostEurop asked Copenhagen Economics to carry out an independent investigation into the current state of the European cross-border parcel delivery sector, focussing on the factors which determine the prices for parcel delivery. 

Jean-Paul Forceville, Chairman of PostEurop, said: "It's great to see the Copenhagen Economics report published today, ahead of the Commission's measures on cross-border parcel delivery in the spring. Let's not forget that delivery is only one part of an extremely competitive, dynamic e-commerce sector - and e-retailers play a leading role in setting the endprice online shoppers pay for cross-border parcel delivery."

A thriving e-commerce market

The report confirms that the European e-commerce market is thriving, with domestic and cross-border online shopping on the increase. Its complex development is influenced by many drivers which benefit the highly competitive delivery sector.

Figures published by Eurostat on cross-border online shopping underestimate its actual development. For example, e-shoppers tend to perceive a transaction as domestic if the website they order on is in their own language.  In another instance, goods ordered from a local website may actually be delivered from a warehouse in another country. In 2014, 40% of online shoppers making their latest online purchase assumed the purchase to be from a domestic seller while the goods are from another EU country [1]. 

An abundance of choice in delivery operators, delivery options and delivery routes

A strongly developing market such as e-commerce draws many actors towards parcel delivery activity. Today, e-retailers have an abundance of choice from a wide-range of delivery operators, while big players like Amazon are expanding into delivery logistics. E-retailers can pick and choose how their goods can be delivered to meet their needs, provided by a diverse delivery sector. This benefits consumers in turn. 

De-bunking myths around delivery prices

E-retailers play an important role in the end-price online shoppers pay for cross-border parcel delivery. A mystery shopping exercise revealed that there is a low correlation between the prices charged by e-retailers to e-shoppers and the prices postal operators' charge to e-retailers. E-retailers choose how to price the delivery service depending on e-shopper demands and the e-retailer’s general pricing strategy.  For example, “free delivery” is offered if the purchase exceeds a threshold.

In the delivery sector, as in other sectors, the price charged is market driven. It is a commercial decision influenced by demand and supply factors such as consumers' willingness to pay, volumes flows or the relative bargaining power of e-retailers. Digging into economic and operational conditions helps better understand price differences between domestic and cross-border delivery services as well as between individual countries.   

The Copenhagen Economics report demonstrates that the e-commerce delivery sector – and delivery process - is highly competitive.  It also challenges some myths and common misassumptions made about cross-border parcel delivery prices.

- End -

See full report [2]

See also previous press releases

European Postal Operators support the DSM Strategy for the benefit of Consumers, Businesses and Society [3] (6 May 2015)

European Postal CEOs met with Vice President Ansip and Commissioner Bieńkowska [4] (22 April 2015)

Dialogue for a Sustainable Future Posts [5] (14 September 2014)

European Postal Operators Committed to the Growth of E-Commerce [6] (16 December 2013)

Postal Delivery: A key enabler for the growth of e-commerce [7] (20 September 2013)

For media queries and information, please contact:

Wolfgang Pickavé

Chair of the PostEurop's E-Commerce Working Group

E: w.pickave@dpdhl.com [8]

Denis Joram

Chair of the Postal Directive Working Group

E: denis.joram@laposte.fr [9]

Cynthia Wee (co-ordinator)

Communications Manager

T: +32 2 773 11 92

E: cynthia.wee@posteurop.org [10]