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© UPU 2020 – All rights reserved© UPU 2020 – All rights reservedUPU.IB

Boosting e-commerce development through the postal network

SADC Postal Ecommerce Forum 2020

© UPU 2020 – All rights reserved

Key ecommerce and postal trends


Key drivers

1. Digital natives


Key drivers

2. Ease and convenience

Down

Up


Key drivers

3. Parcelization of trade


Source: Statista

Key trends

Growth in online sales

1,233

1,922

2,356

Global B2C e-commerce sales trends

2013 2016 2018Year

7.4%

8.7%

11.6%USD billions

Ecommerce share of total retail sales


Highly demanding and evolving market


Highly demanding and evolving market


Source: IPC

Key trends

Growing cross-border ecommerce sales

2x

20%

84%

1. Cross-border ecommerce vs global commerce

2. Cross-border ecommerce vs domestic ecommerce

3. Cross-border ecommerce upto 2kg vs other weights

Source: ITC

Source: Statista


Source: IPC Cross-border e-commerce shopper survey 2018

• 84% of cross-border goods

bought online are small

packets weighing upto 2kgs

• Currently, posts dominate

this market delivering about

70% of this category of

items

Key trends

Parcelization of trade – low weight items

20%

31%

21%

12%

7%4%

6%

0%

5%

10%

15%

20%

25%

30%

35%

Less than 0.2kg 0.2kg - 0.5kg 0.6kg - 1kg 1.1kg - 2kg 2.1kg - 5kg More than 5kg Don't know

Product weight

Key trends

© UPU 2020 – All rights reservedSource: IPC Cross-border e-commerce shopper survey 2018

• 39% of all cross-border

purchases made by

consumers in 31 markets

cost less than €25.

Key trends

Parcelization of trade – low value items

18%

21% 21%

14%

9%10%

1%

0%

5%

10%

15%

20%

25%

Less than €10 €10 - €24 €25 - €49 €50 - €74 €75 - €99 €100 - €199 Don't know

Product value

Key trends

© UPU 2020 – All rights reservedSource: UPU Statistics

Growing cross-border parcels

Global postal traffic


Postal traffic in Africa

Potential growth of postal traffic

14Source: estimates based on UPU statistics

Capillarity of the postal network in Africa

• One post office per 90,000 inhabitants in Africa (one per 11,000 inhabitants worldwide )

• Home delivery covers 19 % of the total

population in Africa


Africa has to bridge the gaps

Some challenges

• Lack of scalableoperations

• Lack of basic infrastructure

• Disciplined monitoring, evaluation and control


For Posts, CHANGE is the key to winningthe ecommerce battle

E-commerce is megatrend, a big opportunity for postal players


Successful

Changing the way we do things

COMPARATIVE EXAMPLESINCREASED


ECOM@AFRICACONCEPT

The UPU ecommerce hubs initiative


The initiative will enable the enhancement of the postal capabilities in the following areas:

Operational readiness1

Supply chain improvement 2

Implementation of technological tools3

E-Markets platform 4

Focus of the initiative


National components

Ecom@Africa: the UPU ecommerce initiative for Africa


Virtual Marketplace

(VMP)

Project ecosystem

Postal supply chain partners

Post Operational

Readiness for Ecommerce

“ORE”

Post Office Network

Customs Airlines

Fulfilment

Centre

Own 3rd party

Application Programming

Interfaces(APIs)

National Ecommerce Strategic and Development Objectives

Ecommerce Regulatory and Policy Environment

Business and Investment Climate

Post Office Network

Post Office Network1

2 3

4

5

Regulatory Readiness

and Investment Climate

22

Ecommerce Fulfillment Centre

• After a shopper completes a purchase on an e-commerce site, the purchased item is picked, packed, labelled and shipped.

• Fulfilment centres can process both business-to-business (B2B) orders – typically a high volume of product that is sent to a big-box retailer – as well as business-to-consumer (B2C) orders, which are shipped directly to an individual customer’s home or delivery location. Exist to get online orders to customers in a

streamlined and timely fashion; the main goal being to turn inventory over quickly.



REGIONAL

INTEGRATION

REGIONAL

24

E-commerce represents hugeopportunity for Africa

25

Online buyers

Domestic Cross-border

On

lin

e s

ellers (

MS

MEs)

Dom

esti

c

Priority 1 (domestic focus - sellers and buyers are both domestic)

VMP focus: Local, marketed nationally Payments: Local (mobile, invoice, COD) Logistics: Simple, local, no customsE-commerce fulfilment: National hub

Priority 2 (export focus – sellers are domestic and buyers are international

VMP focus: Placement of sellers’ items on websites of cross-border e-retailersPayments: Domestic and internationalLogistics: Outbound focus, trucks, airlines, shipsE-commerce fulfilment: Export hub

Cro

ss-b

ord

er

Priority 4 (import focus – sellers are across border and buyers are domestic)

VMP: Local, marketed externally a lotPayments: Domestic and international Logistics: Inbound focus, trucks, airlines, shipsE-commerce fulfilment: Import hubNo job creation or forex earning

Priority 3 (import-export focus – sellers and buyers are cross-border)

VMP focus: Cross-borderPayments: Support international methodsLogistics: International/transit focus, trucks, airlines, shipsE-commerce fulfilment: International / transit hub

Implementation considerations

Based on most use cases



ASSESSMENT(IB/Country)

Phased implementing approach

Deliverable: Situation Report and Implementation Framework

FORMULATION(Country/UPU Consultant)

Deliverable: Implementation Plan

IMPLEMENTATION(Country/Country Consultant)

Key Deliverable: E-commerce ready postal organization

MONITORING(Country)

Deliverable: Monitoring and evaluation report

Activities: Information gathering and analysis (desk analysis, questionnaire survey, project scoping, onsite operational assessment)

Phase

1

Activities: Formulating the projects and drafting the implementation plan of approved projects

Phase

2

Phase

3

Activities: Executing the improvement and implementation plans

Phase

4

Activities: Follow-up, monitor, evaluate, adjust, improve


UPU Consultants

UPU Consultants in the Ecom@Africa project

Knowledge of the initiative: they have good knowledge of the initiative and understand the methodology and approach of the project

Negotiated fee: UPU negotiates with the Consultant and takes the risks of the project planning and formulation, which is crucial for successful implementation

Payment to UPU: Member countries pay to the UPU the negotiated fee of the UPU Consultant

No national procurement process of UPU Consultant: the contract of the Consultants is with UPU, not member countries

Scope of work: UPU Consultant only covers Phase 1 (working with UPU on the Assessment Report) and Phase 2 (Project Formulation – drafting the Project Implementation Plan)


Result: smart postal supply chain

Visibility Simple returns

Delivery choice

Service reliability

Customer service

LabelRFID tag EMSEVTBarcode

Delivery dataSender dataItem data Content piece data

Time, location,

status

Transport(receptacle)

data

ITMATTStandardcrit. times

...???

...???

EMC EDHEMHEMI

EDFEDG

EMGEDEEDDEMFEMEEDB/C

EMDRESDESRESCON

RESDITPREDESCARDITPRECON

EMBEXA/C

EMA

BORDER

DomesticSorting Centre

Office of Exchange(Origin)

Office of Exchange(Destination)

DomesticSorting Centre

ITMATT

ITMATT

CUSITM CUSRSP

...???

WHERE?

HOW?

WHAT?

FOR?

Reliable supply chain meeting e-commerce needs not possible without use of the latest IT tools




Ecom@Africa implementation status

Kenya

Interested

Tanzania

Ongoing implementation

Tunisia

South Africa

Morocco

Cameroon Côte d’Ivoire

Ethiopia

Egypt



Ecom@Africa development

Tunisia Côte d’IvoireEthiopia

Ground breaking ceremony• For the construction of the

Ecom@Africa hub in Tunisia, January 2019

• VMP and ecommerce APIs development ongoing

Acquisition of fulfilment centre• Acquired in November-

December 2019• Refurbishing and

customization ongoing

Land for hub developmentidentified• Ecom@Africa hub in Ethiopia

to be developed at the EthioICT Park next to Bole Lemi Industrial Park



Ecom@Africa development Côte d’Ivoire


© UPU 2020 – All rights reserved33

Planning actions is easy, but achieving them is a challenging !

o Focus and dedication

o Enabling regulatory environment

o Partnership development

o Investment framework

o Addressing infrastructure

o Highly qualified staff

Key success factors



Thank You

Documents

Boosting e-commerce development through the › wp-content › uploads › documents... · business-to-business (B2B) orders –typically a high volume of product that is sent to