The international e-commerce market is growing at astounding speed - 25% per year! Shippers have to work hard to keep up with the changing consumer expectations this causes. Amazon, in the U.S., has established a free two-day delivery expectation - in both Business to Business (B2B) and Business to Consumer (B2C) sales. Two-day free delivery expectations have spread worldwide, especially in the top e-commerce countries of Japan, UK, Germany, Canada, China, Australia, and South Korea.
The top 3 carriers DHL Express, FedEx, and UPS control about 90% of these deliveries. Merchants are looking for other options to get their products delivered globally within 2-3 days. Here’s a quick overview from Parcel Industry of the current options out there to help you choose the best solution for you.
The main pros of shipping postal are that it is cost-effective and shipments are usually not charged duties and taxes. The major con of this strategy is the slowness of delivery--usually 5-7 days.
The biggest benefit of using a freight forwarder is their expertise in handling international freight. They also offer flexibility in getting products around the world quickly. The main drawback is that they have to use a domestic express carrier in the destination country to complete the delivery, which may not be cost effective or competitive.
Parcel consolidators are a hybrid solution between express carriers and postal carriers. A new parcel consolidator, Zenda, is developing a country-to-country network through global airlines. However, they rely on destination-country postal services, which prevents them from being truly competitive.
Major express carriers can capture a larger part of the global e-commerce business. They also have the benefit of extensive global delivery networks and streamlined customs clearance practice, making them highly competitive in the global e-commerce world.
As we become an increasingly global society, B2B and B2C consumers around the world are demanding fast and reliable international delivery at a competitive price. In the same way that people expect instant access to information from around the world, we are beginning to see those expectations translate to tangible items as well. Amazon may have set this expectation, but shippers are left with the burden of fulfilling it on a global scale. As e-commerce continues to grow and customer expectations rise, make sure you take advantage of all the solutions available to you to keep up and exceed these expectations. SwanLeap offers end to end visibility throughout your global supply chain to ensure the clarity and control necessary to deliver the experience your customers deserve.