Now there are many barriers to international parcel delivery. It is difficult for the international delivery agencies to respond to the rapid development of e-commerce business and never greater customer’s request for lower shipping costs. Changing trends in e-commerce business are something challenging for this network, but also for many owners of the Swiss online stores. The problem of expensive shipping dramatically influences the business model of the Swiss online shops which sell the original Swiss made products with high- quality. On the other side, the problems are seemingly smaller for some of their competitors, mostly from East Asia but also from the USA and some other Europe countries, which sell goods of unverified quality, at a very low or almost non-existent delivery price.
Nowadays the postal sector is confronted by the most significant transformation in its history. In other words, to enhance postal service in today’s highly challenging market, particularly to play a more significant role in e-commerce delivery is not easy. Customers needs are getting bigger, as well as their demand for simple, affordable and reliable international transportation. However, achieving and being a courier agency for international parcel delivery with these three characteristics is indeed a complicated thing. Besides the political-economic factors of each country individually, the Universal Postal Union is the one which significantly influences how these courier services work and whether there will be lower shipping costs.
In other words, the UPU regulates how much mails of a country receives from the mail of another nation. It was established in 1874 in the Swiss capital Berne to play a central role as the primary forum for cooperation between postal stakeholders. It has 192 members, and now it strongly recommends to its members to empower the postal network’s role in global development with regards to e-commerce and ICTs. It emphasizes that their country members must continue to develop their international delivery agencies more quickly, and find more efficient ways of working to meet the modern needs of the trade. However, there are still so many barriers to the growth of the cross-border-e-commerce business, such as lack of adequate infrastructure support, the complexity of the postal product offering and outdated postal-customs-transport processes.
And while the Universal Postal Union is trying to help its members with new solutions, and their international parcel delivery agencies, some participants of this e-commerce race are currently winning with this specific situation in the postal network, while the other perceive this moment as unfair.
For example, some online shops from the Far East entice with the low prices of products and with significantly lower shipping costs. And these unbeatable prices are seducing more and more people worldwide who like to buy online.
While Swiss online shops with the original Swiss made products can’t compete with their prices, they are frustrated by the free delivery service offered by their Far East competitors. This is possible due to the current system of differential “terminal dues” – the charge paid to a destination country’s postal service for processing and delivering an item – set by the Universal Postal Union. In other words, some developing countries from the Far East pay significantly lower terminal dues for parcels under two kilos.
To make it more clear, in one situation the Eastern online vendor can send a Swiss customer a parcel of three centimeters thickness and weigh 700 grams for CHF1.70 while a Swiss seller has to pay CHF7 for the same package. In connection with this, UPU announced that some provisions will be modified in 2018 in agreement with representatives of the Swiss postal agencies.
But while such changes are not implemented, the postal companies from the Swiss as well as the Swiss online shops which sell the original Swiss made products have a big problem. Once the complex system of the counter of transactions and charges was intended to allow postal services between poorer and richer countries to be possible at all, the Swiss postal services have become too expensive, and they are even now. Because of that, the Swiss online stores still need to boast a sparkling reputation for the original Swiss made products, payment security, and prompt delivery at the same time trying to explain to their customers that shipping prices are not controlled only by them.
Likewise in the Far East, there are some online vendors from the Europe and the USA who also, thanks to their state standards, have much more manageable conditions than Switzerland for delivering goods.
Ultimately, the international Swiss Online Shops like Swiss Made Direct, which sells only original Swiss made products, need to invest a lot of effort to adapt the business model to ever-greater customer’s needs. Precisely, to adjust originality, innovation and high quality of Swiss made products with the customer ‘s need for lower shipping costs.
The owner of this international online store said: “If consumers are only fixated on the price of the product and low shipping cost, not worried at all about the quality of the product and the delivery service, then original Swiss made products can remain unfairly neglected concerning more inferior quality products, which very often have false or insufficient customs declarations.”
Release ID: 252415