Shopping at e-commerce marketplaces has increased significantly in Europe in recent years. The likes of Amazon, Wish, eBay, and others have seen a growing number of European customers. It’s interesting to note that international marketplaces are common in large countries but less so in smaller ones. The main example of this is Amazon, which has deliberately focused on the largest markets in Europe. Yet shopping at marketplaces will probably increase in smaller countries as well over the next few years. Most likely, the major market players will expand here, or perhaps a domestic participant will succeed in positioning itself before the giants barge in.

diagram shopping at international marketplacesIn those countries with a high usage of marketplaces, one clear effect is the growth in consumer purchasing frequency. In countries where more people shop online from marketplaces, the number of those also shopping online every week is higher as well. This development is probably due to the fact that it is convenient to shop in marketplaces, and that they also often offer attractive member benefits.

A well-known membership service is Amazon Prime, which provides access to Amazon’s streaming service, discount coupons, and most importantly – free shipping with every order, and this drives sales sharply upwards. Prime customers have been known to shop for more than twice as much as ordinary Amazon customers, and the difference appears to increase each year.

Yet international marketplaces also seem to have different strategies when it comes to Europe. This becomes especially clear when comparing for example Amazon, based in the US, and Wish, which is based in China. Amazon is very strong in a few markets, while Wish instead has smaller market shares in many countries. Loyalty to Amazon is extremely high in the countries where the company is established. Germany, France, Italy, Spain, and the UK are all examples of this phenomenon. In contrast, customers in neighboring countries do not appear to be particularly inclined to shop from Amazon – the giant loses its grip on customers as soon as the product has to cross a border. This means that Amazon has a few strong footholds in Europe, but without much reach. Wish, on the other hand, pursues the opposite strategy. Wish is relatively popular in many countries, but does not have a really strong position in any. In Europe, Norwegians and Swedes are the ones who shop most from Wish.

More information on consumers’ usage of marketplaces throughout Europe will be available in a forthcoming PostNord e-commerce report.

Source: PostNord

Oftentimes, when looking for new trends, many people tend to look to the west. However, when it comes to e-commerce, one should definitely look eastwards.

– When people ask me why I live in China, I usually turn it around and ask why they have not come here yet, says Filippa Bätjer, a Sweden-born digital marketing specialist now residing in China.

When it comes to everything digital, including marketing, China is many years ahead of the West. There are several reasons for this. Partly, it’s the economic super-growth that created an affluent middle class in China in just one generation, and partly it’s because this coincided with smartphones becoming popular. When all these millions of people wanted to buy gadgets and status, there was no retail market that could sell these to them, neither in physical stores nor online. Instead, creative tech startups were the ones that saw the opportunities with new technologies. This has resulted in China leapfrogging laptops and web shops. “In China no one uses a computer, but people of all ages use smartphones for everything”, says Filippa Bätjer.

Customer uses his smartphone to scan QR code on the parcel from online shopping“Chinese consumers are not passive recipients of advertising, but instead, ad content here is much more engaging and entertaining. WeChat, also called “China’s app for everything”, really is used for everything and is the primary channel for all e-commerce and marketing today, along with the other major social platforms. Live streaming is very popular, as are QR codes that form the basis of many campaigns and help to tie together the physical and digital world.

This new technology, new behaviors, and new ways of communicating with target groups in China will soon also spread to western countries. Thus, if you want to be successful there in the future, you should observe and learn from what is happening in China today.

Filippa Bätjer has three tips for how to get insight from China:

  1. Turn towards China. Realize that the future has already arrived there. Make a habit of looking east for new trends.
  2. Get to know China. Learn more about how Chinese digital platforms work and what the Chinese consumer mindset is all about. Behavior and culture are key to understanding Chinese retail and marketing.
  3. Go to China. Many people wanting to sell in China or take advantage of the opportunities here have never been in the country. They barely know how Chinese marketing works, and for example how popular QR codes and livestreams are.

Thus, it’s important to get involved, do your homework and then it will be easier to sell to Chinese consumers and be well prepared when these trends are embraced also by the western world.

Malin Herzig, Business Development, Direct Link

Source: DM Magasinet (in Swedish, pdf)

Incident bulletins are sent weekly with information about situations that affect postal distribution.

This week’s bulletin contains updates about: France, Belgium, India, French Polynesia, China, Malaysia, Turkey, Cayman Islands, Croatia.

 

 

France and Belgium

Start date: 6th July
End date: 28th July

Delivery disruptions are likely to be experienced in both France & Belgium during the ‘Tour De France’, which runs from 6th-28th July.

India

Start date: 8th July
End date: 8th July

Adverse weather causes flight delays: heavy rain halted flight operations at Mumbai airport on July 8, causing over 472 delays. The runway closures and diverted flights also affected operations at Pune International Airport, with 30 flights being delayed every day. Changing weather conditions due to monsoon season may lead to further delays and flight cancellations.

French Polynesia

Start date: 8th July
End date: Ongoing

French Polynesia, the Office of Posts and Telecommunications, informs other Union member countries and their designated operators that an open-ended strike was called by postal workers throughout French Polynesia from Monday, 8 July 2019. Conveyance of mail leaving or arriving in French Polynesia will be severely disrupted until further notice.

China

Start date: 6th July
Expected end date: 14th July

Severe flooding affects road traffic: severe flooding has been causing disruptions to road traffic in Fujian Province, Anhui Province and Guangxi Region in China, since July 6. Significant disruption is expected across affected areas for the next few days, with adverse weather forecast, including thunderstorms, until July 14.

Malaysia

Start date: 7th July
End date: Ongoing

Flash flooding causes disruptions: flash flooding on July 7 has caused associated disruptions in the Alor Gajah District in Malacca State, Malaysia. Further heavy rainfall is expected throughout July 8, which may lead to additional evacuations as well as infrastructure and road damages.

Turkey – applying S10 barcode

Start date: 10th July

The designated operator of TURKEY, Turkish Ptt Corporation, wishes to inform the  designated  operators of other  Union  member  countries that, in accordance with  article  17-107.6.4 of the Regulations to the Convention,  all designated operators shall apply a  single barcode identifier conforming to UPU Technical Standard S10 to small packets  containing  goods.  Small  packets without  the mandatory  S10 barcode identifier will be treated in accordance with article 19-101 of the Regulations to the Convention.

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Technical problems

Cayman Islands

Start date: 8th July
End date: 9th July

The designated operator of the Cayman Islands, Cayman Islands Postal Services, informs other Union member countries and their designated operators that, owing to IT difficulties experienced following a software systems upgrade over the past weekend, it was unable to send or receive EDI messages.
The problem has been resolved on the 9th July.

Croatia

Expected start date: 15th July
Expected end date: 16th July

The designated operator of Croatia, Croatian Post, informs other Union member countries that it is in the process of relocating to a new sorting centre. This may cause disruptions in electronic data interchange (EDI) communications and delays in data exchanges with designated operators on 15 and 16 July 2019.

 

Incident bulletins are sent weekly with information about situations that affect postal distribution.

This week’s bulletin contains updates about: Italy, Spain, Canada, USA, Hong Kong, China, Tunisia, India, South Korea, Sweden.

 

Italy

Start date: 2nd July
End date: Ongoing

Following union involvement with staff at Malpensa Office of Exchange (International Mail Hub) there is potential for delays in the processing of inbound and outbound mail services.

Spain

Start date: 1st July
Expected end date: 1st September

Airport workers plan multiple strikes: the Aena airport workers plan multiple strikes at Bilbao Airport between July 1 and September 1. For July, planned dates for the industrial actions are 1, 7, 14, 15, 21, 24, 25, 28 and 31. Flight cancellations have already been announced for flights to Barcelona, Munich, Frankfurt and Amsterdam. Further disruptions to airport operations are expected through September 1.

Canada – back to normal

Start date: 5th May
End date: 3rd July

The effects of the severe flooding since 5th May 2019, which disrupted mail operations in Northern and Eastern Ontario and Quebec regions has now ended. Mail services have returned to normal.

Unites States

Start date: 4th July
End date: Ongoing

Earthquake damages roads and infrastructure: a magnitude 6.4 earthquake in the Mojave Desert, California, has damaged roads and infrastructure in San Bernardino and Kern County. Several 4.0 aftershocks have been reported in the area and are expected to continue throughout the week.

Start date: 4th July
End date: 4th July

Thursday 4th July, Independence Day is a public holiday in the United States. Many businesses close down for the day, including US office. No inbound or outbound mail will be processed, which could result in a 24-hour delay.

Hong Kong, China

Start date: 1st July
End date: 3rd July

The designated operator of Hong Kong, China, Hongkong Post informs other Union member countries that, owing to a public event resulting in a blockage of streets in major areas of Hong Kong on 1 July 2019, the processing of all inbound, outbound and local mail was seriously affected. Quality of service for all types of inbound and outbound mail (EMS, parcels and letter-post items) has therefore been affected.

Tunisia

Start date: 1st July
Expected end date: 4th July

Postal workers begin a 3-day strike: According to local sources, the Rapid Post Union called for a general strike action across Tunisia starting on July 1. The strike is expected to last for three days. The strike is likely to affect all incoming and outgoing mail operations.

India

Start date: 28th June
End date: Ongoing

Flooding disrupts road and air traffic: flooding following heavy rainfall since June 28 continues to disrupt the Mumbai Metropolitan region in India. Severe traffic congestion has occurred on the Western Express Highway. Additionally, the main runway at Chhatrapati Shivaji International Airport is being affected with at least 52 flights cancelled and 55 more diverted.

South Korea

Start date: 9th July
End date: 9th July

Postal employees to go on strike: the employees of Korea Post have voted for a general strike on July 9. Workers demand the establishment of a conventional five-day workweek and an increase in the number of postal workers.
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Technical problems

Sweden

Start date: 15th March
End date: 3rd July

The designated operator of Sweden PostNord Group AB, asks us to inform other Union member countries and their designated operators that the problem in transmitting EDI data for inbound mail items has now been resolved.

Incident bulletins are sent weekly with information about situations that affect postal distribution.

This week’s bulletin contains updates about: Italy, Cyprus, Poland, Hong Kong, China, Bhutan, USA, Australia, Brunei, Nicaragua, Tunisia, Turkey.

 

Italy

Start date: 8th June
End date: 25th June

Airport works affect postal operations: Poste Italiane indicated that postal operations in the region of Sardinia, Italy, hsve been affected by the night-time closure of Cagliari airport for urgent works. Postal services in the postal code areas 07010 to 09199 may have experienced a 24-hour delay from June 8 to June 25.

Cyprus

Start date: 25th June
End date: 25th June

Post offices close due to public holiday: On June 24, Cyprus Post indicated that June 25 has been declared a public holiday following the death of the former President of the Republic, Demetris Christiofas. Post offices, the office of exchange and delivery units will remain closed on that day.

Poland

Start date: 28th June
End date: 28th June

Truck drivers to go on strike: the Polish Transport Union called for a general strike on June 28. More than 7,000 truck drivers will go on strike against the EU Mobility Package Form adopted in early April. Truckers from other European countries are likely to participate in the strike.

Hong Kong, China

Start date: 21st June
End date: 24th June

The designated operator of Hong Kong, China, Hongkong Post, asks us to inform other Union member countries that all postal services and operations are back to normal.

Bhutan

Start date: 25th June
End date: Ongoing

The designated operator of Bhutan, Bhutan Post, informs that it has been experiencing delivery challenges since Tuesday, 25 June 2019 as a result of the monsoon onset. The heavy rain has triggered landslides, which have blocked roads in most parts of the country, thus affecting the on-time delivery of all inbound mail (letter-post, parcels and EMS items). The Royal Government of Bhutan is doing its utmost to restore road connectivity in the affected areas. However, it will be difficult to do so until the weather conditions have improved and heavy rains are forecast for the next 24 hours.

United States

Start date: 25th June
End date: Ongoing

Flooding affects road traffic: flooding following heavy rainfall has been causing substantial disruption in the Rio Grande Valley area, United States. Flooding has particularly affected south-eastern Hidalgo County, north-western Cameron County and south-western Willacy County. Multiple roads have been closed and significant delays are being reported along major interstates.

Australia

Start date: 21st June
End date: Ongoing

Volcano ash causes postal delays: a volcanic ash cloud on the way to Sydney Airport has caused detours and longer shipping times for mail and packages. The situation is gradually normalizing; however, capacity remains limited due to the backlog.

Brunei

Start date: 21st June
Expected end date: 30th June

Postal services disrupted in Brunei: On June 21, sources indicated that the delivery of mail and parcels to Brunei has been disrupted. The route to Brunei is expected to reopen by the end of June. Therefore delivery of mail and parcels will be delayed for at least two weeks.

Nicaragua

Start date: 26th June
Expected end date: 30th June

Postal services disrupted in Nicaragua: On June 26, sources indicated that the delivery of mail and parcels to Nicaragua has been disrupted. The route to Nicaragua is expected to reopen by the end of July. All mail and parcels will be stored until a route is available again.

Tunisia

Start date: 27th June
End date: Ongoing

Custom clearance processes suspended: customs clearance processes of cargo have been suspended at Tunis-Carthage International Airport following a fatal attack in the city centre. All inbound and outbound cargo is currently held at the airport until the further notice.

Turkey – Customs

Start date: 1st June

The  designated  operator  of  TURKEY  wishes  to  inform  the  designated operators  of  other  Union  member  countries  that  the  customs  duty
exemption  limit  for  the  value  of  postal  items  containing  books  or other printed publications for personal  use is 150 EUR, whereas the exemption  for  postal  items  containing goods/commodities  of  a  value below  22  EUR  has  been  removed.  In  accordance  with  new  legislation, as  of  1  June  2019,  all  inbound  postal  items  containing  goods  shall
be  submitted  to  Customs,  and  customs  duty  shall  be  applied  on  the content value at the rate of 18% for EU countries and 20% for non-EU countries. Therefore, it is very important that designated operators take all necessary steps to ensure that the CN 22, CN 23 and CP 72 customs  declaration  forms  are  duly  completed  in  accordance  with article  20-001  of  the Regulations to  the  Convention.  Incomplete, incorrectly  completed,  or  missing  customs  declarations  may  cause delays in delivery.

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Technical problems

United States

Start date: 15th March
End date: 26th June

The designated operator of United States of America, the United States Postal Service (USPS), informs that the IT problems that were affecting the generation of EDI messages have been resolved. USPS operations have returned to normal.

Italy

Start date: 22nd June
End date: 23rd June

EDI transmission likely to be disrupted: On June 19, Poste Italiane indicated that the transmission of EDI messages will likely be affected due to the management upgrade for parcel products on June 22 and June 23.