As the world of global e-commerce continues to grow, there is an increasing interest in having an “express” service option available for international shipments. The major carriers (DHL, Fed Ex, and UPS) dominate this space. However, DHL has the largest network outside of the US and a strong brand recognition to speed and reliability. The global postal authorities are struggling with limited flights that are available for international shipments. This is slowing down their service and creating inconsistencies in their networks. Let’s take a close look at the global e-commerce world:
1.95% of the world’s population lives outside the US
2.2.1 billion online shoppers by 2021
3.$4.9 trillion on global e-commerce sales
4.81% increase in e-commerce sales (May 20 vs May 19)
This peak season will accentuate the true need for faster, consistent, and reliable delivery. Most consumers are making purchases from their mobile phones, which creates a world where they can buy anything… any time. They also want to buy items in their local currency, which allows them to ascertain the true value of the item, especially if they are comparing it to an Amazon price. In 2019, DHL Express conducted research on consumer behaviors and revealed that the speed of delivery can be valued greater than the cost of goods. It also discovered that retailers that offer a premium international option grow 60% more than those that do not offer this option. In a separate study conducted by Metapack, 58% of global consumers would choose a retailer solely because of its delivery options.
In addition to having an “international express option,” it is critical to have a clear and concise shipping policy listed on the website. It should include free shipping options on certain order sizes, flat rate shipping cost, estimated delivery times, carrier used, duties/taxes implications, countries served, returns, insurance, and tracking.
We all know that global e-commerce is more complicated than a domestic order, but they are usually larger orders with higher margins. With 95% of the world’s population at your fingertips, this is a great opportunity to expand your business exponentially. What are you waiting for? Just set up that “express option” for your international customers and watch your orders continue to increase.
Michael J. Ryan is the Executive Vice President at Preferred Shipping (www.preferredship.com) and has over 25 years of experience in the parcel industry. He can be reached at 708.224.1498 or email@example.com.
This article originally appeared in the November/December, 2020 issue of PARCEL.