CROSS-BORDER E-COMMERCE SHOPPER SURVEY 2020 - MARKET INTELLIGENCE Key Findings - International Post Corporation

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CROSS-BORDER E-COMMERCE SHOPPER SURVEY 2020 - MARKET INTELLIGENCE Key Findings - International Post Corporation
CROSS-BORDER
E-COMMERCE
SHOPPER
SURVEY 2020
Key Findings

            MARKET INTELLIGENCE
                    24 pages
 download         February 2021   www.ipc.be
TABLE OF CONTENTS

     Message from the CEO  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3
     Key figures .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 4
     E-commerce & COVID-19  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5
     Most recent cross-border e-commerce purchase .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 9
          Country of origin .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 10
     Product characteristics .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 14
          Product Weight .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 14
          Product Value .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 15
     Delivery experience .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 16
          Delivery cost .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 16
          Delivery speed .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 17
          Returns & Customs .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 18
          Customer satisfaction .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 19
     Sustainability preferences .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 20
     IPC Market Intelligence .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 22
     Methodology .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 24

2   INTERNATIONAL POST CORPORATION
MESSAGE FROM THE CEO

Holger Winklbauer
Chief Executive Officer, IPC

I am delighted to present to you the key findings of the 2020      In addition to carrying out the Cross-Border E-Commerce
IPC Cross-Border E-Commerce Shopper Survey. This year,             Shopper Survey in 2020, IPC also piloted a Domestic
our survey researched 33,594 consumers in 40 different             E-Commerce Shopper Survey in eight countries, as well
countries, in Europe, Asia-Pacific, Americas and for the first     as a survey with Small and Medium Enterprises in France,
time in Africa. These 40 countries account for 95% of global       Germany the UK and the US to determine their requirements
e-commerce. Each year the survey questionnaire is reviewed         for E-Commerce, and their opinions on the first-mile collection
by IPC in cooperation with research experts from its members.      activities. The results of both studies are available to IPC
In addition to the new section on the impacts of COVID-19, the     members on the IPC website.
survey was extended for the first time to consumers in Morocco,
Nigeria and South Africa. The research took place in October       This public report of the 2020 IPC Cross-Border E-Commerce
2020 and the analysis and reporting was conducted by IPC.          Shopper Survey provides a high-level selection of the key
                                                                   findings. In addition to this, IPC members can log onto
COVID-19 has had a major impact on consumer online                 www.ipc.be/shopper to download a comprehensive report
purchasing throughout 2020 and this report highlights there        comparing all 40 markets surveyed and can also download
were big increases in the online purchase of groceries, clothing   individual country reports with consumer responses specific to
and health & beauty products throughout the last year. Eight       each market. IPC will continue to work in partnership with its
percent of consumers said that their online purchases from         members, other postal operators and organisations to expand
e-retailers based in their own country doubled or more, due        the survey to new markets in the coming years. 2020 was
to the COVID-19 pandemic. Importantly for postal operators,        certainly a challenging year, and COVID-19 restrictions have
consumers expect to shop more online in the future from            given an unprecedented boost to e-commerce with records
e-retailers based in their own countries and from e-retailers      for peak volumes being broken around the world. I hope
based abroad.                                                      that the findings from this survey will help postal operators
                                                                   to understand the improvements they need to make to their
                                                                   service offering to meet rapidly evolving consumer needs,
                                                                   and to fully benefit from the latest growth in online commerce.

                                                                                IPC CROSS-BORDER E-COMMERCE SHOPPER SURVEY 2020      3
KEY FIGURES

               51%
             bought more
                                          33%
                                      bought more cross-
                                                                     48%
                                                                   want recyclable
                                                                                          31%
                                                                                     want carbon-neutral
           domestically due to          border due to                packaging             delivery
              pandemic                    pandemic

                                                                                                1
                                                                                            2       3

              37%                         Online survey                                   26%
                                      15-minute questionnaire
              bought from                                                                bought from
                China                                                                      Amazon

                                     33,594                 online cross-border
            13% from the US,                                                         19% from AliExpress,
           11% from Germany                                                            11% from eBay
          and 10% from the UK
                                                            consumers responded       and 9% from Wish

               47%
            of items weighed
                up to 0.5kg
                                         40                 countries
                                                            surveyed                      38%
                                                                                         valued under
                                                                                             €25

                  FREE

               61%
                had free
                                          31%
                                      waited 15+ days for
                                                                     15%
                                                                   paid customs
                                                                                           9%
                                                                                       returned (part of)
              cross-border               cross-border                  duties            cross-border
                shipping                    delivery                                       purchase

4   INTERNATIONAL POST CORPORATION
E-COMMERCE &
COVID-19
Respondents were asked about COVID-19, and the impact that it has had on e-commerce and
delivery in 2020.

Eight percent of respondents said that their online purchases                              said that their domestic online shopping decreased during
from e-retailers based in their own country doubled or more,                               the COVID-19 pandemic.
due to the COVID-19 pandemic. Seventeen percent said that
their online purchases from domestic e-retailers increased                                 Overall, 33% bought more from foreign-based e-retailers due
by 50-100%, and 26% saw an increase of up to 50%. This                                     to the pandemic, while a further 47% said that their online
means that 51% of consumers overall bought more from                                       shopping was unchanged, and 14% said that their cross-
domestic e-retailers due to the pandemic, while a further                                  border online shopping decreased during the COVID-19
37% said that their online shopping was unchanged, and 7%                                  pandemic.

                6%                                  6%
         1%
                       2%                           3%

                                                                                                                      51%
                4%                                  4%

                                                    7%

                                                                                                    bought more from domestic
               37%

                                                   47%
                                                                                                  e-retailers due to the pandemic

               26%
                                                                                   Don’t know

                                                                                   Stopped buying online from e-retailers

                                                                                   Number of items bought online decreased by 50-100%
                                                   17%
                                                                                   Number of items bought online decreased by up to 50%

               17%                                                                 Number of items bought online was the same

                                                   10%                             Number of items bought online increased by up to 50%

                                                                                   Number of items bought online increased by 50-100%
                8%
                                                    5%                             Number of items bought online increased by 100% or more (i.e. doubled or more)
  From domestic e-retailers             From foreign e-retailers

Question: How have your shopping habits been affected by COVID 19 in terms of buying from e retailers based in your country?
And how have your shopping habits been affected by COVID-19 in terms of buying from e retailers based abroad?
Sample: 33,594

                                                                                                              IPC CROSS-BORDER E-COMMERCE SHOPPER SURVEY 2020       5
COVID-19 impact per product category
                        Biggest increases for groceries, clothing and health & beauty

     Respondents were then asked for their online purchase activity                            The biggest increases were seen for Groceries (10% buying
     per product category during the COVID-19 pandemic. For all                                significantly more online), Clothing, footwear and apparel
     product categories, there was an increase in online shopping                              (30% buying significantly or slightly more) and Health & beauty
     (i.e. more respondents buying more than buying less online).                              (27% buying significantly or slightly more).

                                       10%
                                                                                                                  14%
                                                                16%                      18%                                                 17%

              28%                       8%

                                                                                                                   7%
                                                                 6%
                                                                                          7%                                                 7%                43%
                                        9%
                                                                                                                   7%
                                                                 8%
                                                                                          7%
                                                                                                                                             8%
               5%

               5%

                                                                                                                                                                4%
                                       43%
                                                                                                                                                                5%
                                                                43%
                                                                                                                  49%
                                                                                         46%
              36%                                                                                                                            46%

                                                                                                                                                               35%

                                       22%
              16%
                                                                20%
                                                                                         17%                      17%                        17%

                                                                                                                                                                9%

              10%                       8%                       7%                       5%                       5%                        5%                 4%

           Groceries                Clothing,                 Health &                 Books,                 Consumer                       Sport,           Baby &
                                    footwear                   beauty                  music &               electronics &                 leisure &           child
                                    & apparel                                          media                  computers                    hobbies

           Bought significantly more items online                  Bought slightly more items online                         No change

           Bought slightly fewer items online                      Bought significantly fewer items online                   Not applicable – do not buy this product online

     Question: For each of the following product types, how have your online shopping habits been affected during the COVID 19 lockdown?
     Sample: 33,594

6   INTERNATIONAL POST CORPORATION
Was delivery speed affected by COVID-19?
                    47% of cross-border deliveries were slower due to COVID-19

Respondents were asked whether they thought the delivery                   • This was highest in Cyprus (91%), Australia and South
for their most recent online purchase took longer due to                     Africa (both 77%), India (75%) and New Zealand (70%)
COVID-19. Almost half (47%) of respondents felt that it did.
                                                                           • It was lowest in Germany, Russia and the Netherlands
                                                                             (all 29%), and the UK, Austria and Sweden (all 32%).

                                                                                                   77%
                                                                                91%
                                                                                Cyprus
                                                                                                   Australia,
                                                                                                  South Africa

                                                                                                                 75%
                                                                                                                   India

                                                                    18%
                                                                                                                            70%
                                                                                                                           New Zealand

                                                                          Yes

                                                                          No
                                                                                                  47%

                                                                          Don’t know

                                                                                                                            32%
                                                          35%

                                                                                                                            Austria,
                                                                                                                            Sweden,
                                                                                                                              UK

                                                                                                   29%
                                                                                                The Netherlands,
                                                                                                   Germany,
                                                                                                    Russia

Question: Do you think that delivery took longer due to COVID-19?
Sample: 33,594

                                                                                         IPC CROSS-BORDER E-COMMERCE SHOPPER SURVEY 2020   7
Future shopping intentions
                         Greater growth expected for domestic than for cross-border e-commerce

     Respondents were asked to consider the impact of COVID-19
     on their future shopping habits via two statements:
                                                                                                                       7%                                          8%
     • Twenty-two percent strongly agreed with the statement that
       they would buy more from domestic e-retailers in future. Two-                                                   5%
       thirds of respondents selected the top three answer codes.
                                                                                                                                                                   8%
                                                                                                                       3%
     • A smaller proportion – 13% - strongly agreed that they
       would buy more from foreign-based e-retailers, and half                                                         5%
       selected the top three answer codes.                                                                                                                        5%

                                                                                                                                                                   9%
                                                                                                                      14%

                              67%
                                                                                                                                                                  19%

                                                                                                                      23%

              will buy more from domestic
                 e-retailers in the future                                                                                                                        23%

                                                                                                                      22%

                                                                       I don’t know                                                                               15%
                                                              Strongly disagree: 7

                                                                                    6

                                                                                    5
                                                                                                                      22%
                                                                                    4

                                                                                    3                                                                             13%
                                                                                    2

                                                                  Strongly agree: 1

                                                                                                          In future, I will buy more                    In future, I will buy more
                                                                                                           online from e-retailers                       online from e-retailers
                                                                                                            based in my country                               based abroad

     Question: Thinking of the impact of COVID 19 on your future shopping habits, to what extent do you agree with each of the following statem ents?
     Sample: 33,594

8   INTERNATIONAL POST CORPORATION
MOST RECENT CROSS-
BORDER E-COMMERCE
PURCHASE
Respondents were asked to provide details on their most recent cross-border online purchase,
including details about where they bought the product from, what were the characteristics of the
product, what was the delivery experience and how satisfied were they with the delivery elements
on this purchase.

Country of most recent purchase
When asked to provide details on the country of origin of this                              This survey is now in its fifth year, with the first edition taking
online purchase, 37% of respondents made their most recent                                  place in 2016. This enables us to report on key trend data in
cross-border e-commerce purchase from China, 13% from                                       this report. When looking at the 25 trend countries that have
the US, 11% from Germany and 10% from the UK.                                               been in every survey since 2016, China’s share decreased for
                                                                                            the first time in 2020. The other three main export markets
Purchases from China were highest in Russia (80%), Eastern                                  maintained their market share, with Germany having a slight
Europe and Africa. The top three sources per country are                                    increase in 2020. Germany’s market share has benefitted from
detailed in the map on the next two pages.                                                  neighbouring countries buying cross-border from Germany
                                                                                            rather than from further afield due to concerns about COVID-19
                                                                                            leading to delivery delays.

28%                 26%                 28%                  28%                 30%        Others

15%
                    14%                 11%                  11%
                                                                                 11%        US
                                                                                                                       China’s share
                                                                                                                       decreased for the
                    13%                 12%                  13%                 12%        UK
15%

16%
                    14%
                                        13%                  12%                 14%        Germany
                                                                                                                       first time in 2020
                    33%                 36%                  36%                 34%        China
26%

2016               2017                 2018                 2019                2020

Question: Please specify the country from which you bought this most recent online cross-border purchase.
Sample: 33,594 and 22,700 (Trend)

                                                                                                            IPC CROSS-BORDER E-COMMERCE SHOPPER SURVEY 2020       9
Country of most recent purchase
                          Top three cross-border markets purchased from per country

             MEXICO                           USA                         CANADA                          RUSSIA               CHINA              JAPAN

        US             50%            China           47%            US              51%            China     80%         Japan        24%   China        37%
        China          37%            UK              12%            China           33%            US         5%         Australia    13%   US           29%
        Spain           2%            Canada           9%            UK               4%            Hong Kong  4%         US           12%   S. Korea     12%

                                                                                                                                              SOUTH KOREA

                                                                                                                                             US           47%
                                                                                                                                             China        22%
                                                                                                                                             Japan         7%

                                                                         MOROCCO                            INDIA           INDONESIA

                                                                     China           58%            US              28%   China        55%
                                                                     France          14%            Australia       15%   Singapore    10%
                                                                     US               7%            China           15%   S. Korea      8%

                                                                          NIGERIA                    SOUTH AFRICA           AUSTRALIA        NEW ZEALAND

                                                                     China           62%            China           46%   China        31%   Australia    34%
                                                                     US              18%            US              26%   US           28%   China        33%
                                                                     UK               9%            UK              10%   UK           13%   US           16%

      Question: Please specify the country from which you bought this most recent online cross-border purchase.
      Sample: 33,594

10   INTERNATIONAL POST CORPORATION
ICELAND                        NORWAY                         SWEDEN                         FINLAND               ESTONIA                LATVIA

  UK             36%            China           33%            China           26%            China         34%       China      49%       China         61%
  US             19%            US              13%            Germany         19%            Germany       20%       Germany    14%       Germany        8%
  China          14%            UK              12%            UK              17%            Sweden        11%       UK         11%       UK             8%

          UK                        DENMARK                                                                                                  LITHUANIA

  China          43%            China           28%                                                                                        China         65%
  US             20%            Germany         24%                                                                                        UK             8%
  Germany         9%            UK              16%                                                                                        Germany        8%

                                                                                                                                               POLAND

                                                                                                                                           China         60%
                                                                                                                                           Germany       16%
                                                                                                                                           UK             8%

                                                                                                                                              GERMANY

                                                                                                                                           China         40%
                                                                                                                                           UK            11%
                                                                                                                                           Austria       11%

      IRELAND                                                                                                                              SWITZERLAND

  UK             68%                                                                                                                       Germany       37%
  China          13%                                                                                                                       China         25%
  US              5%                                                                                                                       France        13%

  NETHERLANDS                                                                                                                                  AUSTRIA

  China          49%                                                                                                                       Germany       70%
  Germany        19%                                                                                                                       China         14%
  US              7%                                                                                                                       UK             3%

      BELGIUM                                                                                                                                 HUNGARY

  Netherlands 32%                                                                                                                          China         60%
  France      22%                                                                                                                          Germany        8%
  China       19%                                                                                                                          UK             5%

   LUXEMBOURG                                                                                                                                 SLOVENIA

  Germany        66%                                                                                                                       China         44%
  China          11%                                                                                                                       Germany       18%
  France          7%                                                                                                                       UK             9%

       FRANCE

  China          44%
  Germany        19%
  UK              8%

     PORTUGAL                           SPAIN                         ITALY                        CROATIA                GREECE               CYPRUS

  China           43%            China          51%            China           38%            China         50%       China      46%       Greece        31%
  Spain           24%            Germany        10%            Germany         17%            Germany       12%       UK         14%       UK            22%
  UK              10%            UK             10%            UK              16%            UK             8%       Germany     9%       China         10%

Question: Please specify the country from which you bought this most recent online cross-border purchase.
Sample: 33,594

                                                                                                             IPC CROSS-BORDER E-COMMERCE SHOPPER SURVEY 2020   11
Purchasing from China in future
                          As delivery charges increase, purchasing from China will drop significantly

      Looking to the future, the introduction of VAT on low-value e-commerce items entering the EU as of July 2021 and changes
      to postal rates will further impact on China’s market share. With this in mind, respondents whom had bought from China in
      the past year were asked what they would do if online purchases from China increased by €0.50, €1, €2, €5 or €10 per item.

      • If costs increased by €0.50 per item, then 53% would                                        • The proportion who would stop purchasing from China
        continue purchasing from China as before, 32% would buy                                       increased with each cost increase until 77% would stop
        slightly less from China and 9% would stop purchasing                                         buying from China at the €10 price point.
        online from China.

      Extra cost of €0.50 per item            9%                          32%                                                            53%                                           6%

         Extra cost of €1 per item                 17%                                      40%                                                      37%                               6%

         Extra cost of €2 per item                             34%                                                    41%                                          19%                6%

         Extra cost of €5 per item                                                60%                                                              28%                        7%       5%

        Extra cost of €10 per item                                                             77%                                                                13%            5%     4%

                                                Stop purchasing from China                                          Buy slightly less from China

                                                No change to purchase activity                                      Don’t know

      Question: In future, there may be extra costs for Chinese imports. How would your purchasing behaviour change for items coming f rom China if the following extra costs were applied?.
      Sample: 16,968 (bought from China in past year)

12   INTERNATIONAL POST CORPORATION
2
        1
            3       E-retailer used for most recent cross-border purchase
                    Amazon is the leading cross-border e-retailer

Twenty-six percent of the most recent cross-border purchases were made on Amazon, with AliExpress (19%) in 2nd place, eBay
(11%) in 3rd place and Wish (9%) being the 4th most commonly used e-retailer for cross-border e-commerce. Of this “Big 4”,
eBay and Wish both lost market shares in 2020.

Key findings are...

• Amazon was most common in Luxembourg (71%), India                                        • Wish was most common in Hungary (26%) and South Africa
  (56%), Austria (54%), Ireland (51%), and Canada, Italy and                                 (25%).
  Japan (47%).
                                                                                           • Other e-retailers with a large share in a single country were
• Alibaba / AliExpress was most popular in Russia (74%),                                     Shopee (46% in Indonesia), JD.com (32% in China), Jumia
  Lithuania (59%), Latvia (50%), Poland (49%) and Morocco                                    (31% in Nigeria and 17% in Morocco), Bol.com (20% in
  (47%).                                                                                     Belgium) and Lazada (16% in Indonesia).

• eBay was highest in Australia (34%), the UK (33%) and                                    • Some smaller e-retailers with a notable market share in
  Croatia (30%).                                                                             2020 include ASOS (1% at overall level), Shein (1%), iHerb
                                                                                             (1%), Joom (1%) and Zooplus (1%).

                                                                                                                            Amazon

                                                                                                                26%
                      Other

                                                                         26%
                                             33%

                                                               of most recent cross-
                                                               border purchases were
                                                                 made on Amazon
                                           2%
                                                                                                                  19%

                      Zalando
                                                          9%
                                                                                                                                Alibaba / AliExpress

                                                                                    11%

                                           Wish

                                                                                    eBay

Question: Please identify which retailer you bought this particular purchase from
Sample: 33,594

                                                                                                        IPC CROSS-BORDER E-COMMERCE SHOPPER SURVEY 2020      13
PRODUCT
      CHARACTERISTICS
                          Product weight
                          Reduced proportion of packets weighing up to 0.5kg

      Nearly half (47%) of cross-border online purchases weighed up
                                                                                        6%     6%     6%     6%     5%
      to 0.5kg. Considering the definition of a packet is a purchase
      which weighs up to 2kg, 84% of purchases were defined as                                                      4%
                                                                                        5%     4%     4%     4%
      a packet, 11% a parcel and the remaining 5% of respondents
      answered, ‘don’t know’. The most common weight category,                                               5%     7%
                                                                                               6%     6%
      with 30%, was 200-500g.                                                           8%

      In 2020, the reduction in packets coming from China led to a                                           11%
                                                                                               11%    11%
      significant change in the weight of cross-border e-commerce                                                   14%
      purchases. For the 25 trend countries in 2020, 47% of items                       14%
      weighed up to 0.5kg. This is significantly lower than in the
      previous three years, when 52% of items weighed up to 0.5kg.
      Instead, 2020 has seen a 3% increase in items weighing 1.1 –
      2kg, and a 2% increase in items weighed 2.1 – 5kg.                                              20%    21%
                                                                                               20%

                                                                                                                    23%
                                                                                        21%

                                                                                               31%    32%    32%

                 47%
                                                                                        28%                         30%

                                                                        I don’t know

             of cross-border
                                                                     More than 5 kg

                                                                       2.1 kg to 5 kg

            online purchases                                           1.1 kg to 2 kg

                                                                      0.6 kg to 1 kg    17%
                                                                                               21%    21%    20%
                                                                                                                    17%

           weighed up to 0.5kg                                      0.2 kg to 0.5 kg

                                                                   Less than 0.2 kg
                                                                                        2016   2017   2018   2019   2020

      Question: What was the approximate weight of this particular purchase?
      Sample: 33,594 and 22,700 (Trend)

14   INTERNATIONAL POST CORPORATION
Product value
                    Reduced proportion of items valued below €25

In terms of product value, 16% of purchases were worth less                                 When looking at the 25 trend countries, it is clear that the
than €10, 22% were valued at €10 - €24, 22% were valued at                                  reduction in packets coming from China in 2020 also led to
€25 - €49, 23% were worth €50 - €99, 16% were worth €100                                    a significant change in the value of cross-border e-commerce
or more, and 1% of consumers were unsure of the product                                     purchases.
value. Consumers in Latvia and Lithuania tended to purchase
the cheapest items online, especially from China.                                           The proportion of cross-border items valued below €25 had
                                                                                            gradually risen over time, from 36% in 2016 to 44% in 2019.
                                                                                            It then significantly dropped back to 37% in 2020. There
                                                                                            has instead been a small rise in 2020 for each of the other
                                                                                            product values.

                                                                                  37%                       of cross-border online
                                                                                                            purchases were below €25

2016               16%                            20%                               20%                  15%                 10%              18%            2%

2017                  19%                                21%                               21%                 14%                 8%          16%            1%

2018                   20%                                  22%                                 21%               13%               7%         14%           2%

2019                    21%                                    23%                                21%                  13%              7%          13%       1%

2020               15%                             22%                                    23%                  14%                 9%           15%          1%

               Less than €10               €10 to €24                €25 to €49           €50 to €74      €75 to €99           €100 or more          I don’t know

Question: Please specify the approximate cost of goods within this particular purchase.
Sample: 33,594 and 22,700 (Trend)

                                                                                                        IPC CROSS-BORDER E-COMMERCE SHOPPER SURVEY 2020             15
DELIVERY EXPERIENCE
            FREE          Delivery Cost
                          61% of respondents received free shipping

      Sixty-one percent of respondents received free shipping
      – broken down as 35% due to retailer offer, 9% due to a                                       E-retailer analysis
      promotion (e.g. Black Friday), 11% due to high product value                                  Free shipping was 75% for Alibaba and Zalando, 66% for
      and 5% due to a loyalty programme (e.g. Amazon Prime).                                        Asos and Amazon, 59% for eBay and 30% for Wish.

      Country analysis                                                                              Trend analysis
      The level of free shipping was highest in Russia (86%), China                                 When looking at the 25 trend countries, the level of free
      (79%), Luxembourg (79%) and Spain (75%). It was lowest in                                     shipping was 59% in 2016, 61% in 2017, 62% in 2018 and
      Iceland (25%) and Nigeria (29%).                                                              62% in 2019. It then decreased to 60% in 2020.

      Free shipping due to a loyalty programme was highest in                                       The level of free shipping due to “retailer offer” fell by 6% in
      Austria (15%) and Luxembourg (13%), due to Amazon.                                            2020, while those receiving free shipping due to “high item
                                                                                                    value” increased by 3%. These results are logical, because
                                                                                                    there is a reduction in packets coming from China with free
                                                                                                    delivery, but also the average cross-border item value increased
                                                                                                    in 2020 and so more items have free delivery for that reason.

      2016                                   38%                                      8%             9%           3%         16%                          22%             3%

      2017                                      42%                                          8%             9%         3%           18%                     17%           3%

      2018                                     40%                                       8%             10%            4%          16%                     18%           4%

      2019                                      41%                                         8%             9%          4%          16%                      18%           3%

      2020                                35%                                   9%                12%             5%           16%                        21%             3%

                    Retailer offers free shipping                       Specific free shipping promotion                    Free due to high item value

                    Free due to loyalty programme                       Less than €5                                        More than €5                          I don’t know

      Question: Please specify whether the shipping costs (in currency paid) for this particular purchase were…
      Sample: 33,594 and 22,700 (Trend)

16   INTERNATIONAL POST CORPORATION
Delivery speed
                    Fastest delivery to Austria, Belgium, Ireland and Luxembourg

When asked how long the purchase took to arrive – from                                          Compared to previous years, cross-border shoppers in 2020
the moment of purchase until the day of the parcel’s arrival                                    were more likely to experience delivery in 1-3 days or in 15
– 31% of respondents said that the item took 15 or more                                         days or more, and they were less likely to receive the item in
days. Further details and country highlights, are shown in                                      6-14 days.
the graph below. This graph shows that delivery was usually
fastest for consumers in countries who mainly buy from their                                    This indicates that deliveries from neighbouring countries are
neighbours, while delivery was slowest for those mainly                                         getting faster over time, while deliveries from further afield (i.e.
buying from China.                                                                              China) are taking longer – likely due to delays with customs
                                                                                                and, in 2020, due to COVID-19.

        Same day        2%

         Next day            4%                                                                 12% in Belgium and China

         2-3 days                                 15%                                           39% in Austria, 34% in Luxembourg and 32% in Belgium

         4-5 days                                  15%                                          33% in Luxembourg, 31% in Ireland and 26% in Austria

         6-7 days                          12%                                                  25% in Indonesia, 22% in Korea and 20% in Japan

         8-9 days                 6%                                                            12% in Cyprus and Korea

      10-14 days                               13%                                              30% in Cyprus, 22% in Japan and Russia, and 21% in Korea

      15-29 days                                     16%                                        34% in Russia, 29% in Morocco, 28% in Lithuania, Nigeria and Hungary

30 or more days                                   15%                                           40% in Latvia, 33% in Lithuania, 32% in Slovenia and South Africa

     I don’t know       2%

Question: How long did it take, from buying the product online until the order was delivered?
Sample: 33,594

                                                                                                               IPC CROSS-BORDER E-COMMERCE SHOPPER SURVEY 2020         17
Customs
                          15% of respondents paid customs duties on their cross-border online purchase

      Fifteen percent of respondents paid customs duties on their                                 likely to be paid at the point of purchase (52%), while 23%
      most recent cross-border e-commerce purchase.                                               paid customs when the parcel was en-route and 23% paid
                                                                                                  when receiving the parcel, or after receiving it. Again, European
      At a country level, the countries with the highest proportion                               consumers tended to pay customs at a later stage compared
      which paid customs fees were Iceland (69%), India (60%),                                    to consumers elsewhere.
      Nigeria (49%), South Africa and China (both 45%). At the other
      end of the scale was Luxembourg (3%), followed by Austria,                                  IPC has developed its Postal Delivered Duties Paid (PDDP)
      Slovenia and the three Baltic states (all 4%).                                              solution, which will further help posts to benefit from
                                                                                                  e-commerce growth. PDDP will support the payment
      Three-quarters (77%) of respondents were made aware pre-                                    of taxes, duties and handling charges at the point of
      purchase that customs would be applicable for their cross-                                  purchase by the e-buyer on the e-seller’s website and
      border purchase. As in previous years, this proportion was                                  make the payable amount available to the destination post
      lower in Europe than in other regions.                                                      for payment to the inbound customs authorities. Through
                                                                                                  PDDP, posts will be able to offer an essential functionality,
      Respondents were also asked at what stage of the purchase                                   already offered by the integrators, and thus become more
      process they paid these customs duties. Customs were most                                   competitive on the cross-border market.

                          Returns
                          Returns were highest in India and the US

      Five percent of respondents returned their most recent cross-
      border purchase, while 4% returned part of it (i.e. if they had                                                                  5%
      purchased multiple items in one order).                                                                                                   4%
                                                                                                                                                     2%

      The graph to the right shows the percentage who returned
      either the entire purchase or part of it. Returns were highest in
      India (42%), followed by the US (23%), China (18%), Australia                                                           Yes - returned
      and Cyprus (both 16%).                                                                                                  purchase

                                                                                                                              Yes - returned part

      5%
                                                                                                                              of this purchase

                              returned their entire                                                                           Not yet decided

                              purchase                                                                                        No

      4% purchase
         returned part of their
                                                                                                                                89%

      Question: Did you have to pay customs duty / customs clearance fees on this particular purchase?
      Question: Did you return this particular purchase (or part of this purchase)?
      Sample: 33,594

18   INTERNATIONAL POST CORPORATION
Customer satisfaction
                   Highest for delivery location & cost, but lowest for delivery speed

The IPC Cross-Border E-Commerce Shopper survey 2020                           Satisfaction was highest for delivery location (68% extremely /
asked respondents for their level of satisfaction with each                   very satisfied) and delivery cost (62%), and lowest for delivery
element of the delivery process: Delivery cost, tracking, speed,              speed (39%).
delivery location, customs and returns.
                                                                              Satisfaction with returns, tracking and customs was only
                                                                              asked to respondents who had experienced those three
                                                                              delivery elements.

                                         1%                 1%                                                                           2%
           1%                                                                             3%             1%
                                                                         2%
                                         4%                                     2%                            3%                    2%
           5%                                                      3%
                                                                                          5%
                                                                                                              9%                         8%
                                         9%                        9%

                                                                                      13%
           25%
                                                                                                                                         17%

                                         23%
                                                                   26%
                                                                                                              32%

                                                                                      25%

                                                                                                                                         31%
           28%
                                         23%

                                                                   25%

                                                                                                              29%
                                                                                      24%

                                                                                                                                         21%

           39%                           39%
                                                                   33%
                                                                                      26%                     25%

                                                                                                                                         18%

    Delivery location              Delivery cost                Returns              Customs             Parcel tracking            Delivery speed

      Extremely satisfied                      Very satisfied                 Satisfied                              Neither satisfied nor dissatisfied

      Dissatisfied                             Very dissatisfied              Extremely dissatisfied                 I don’t know

Question: How satisfied were you with…
Sample: 33,594

                                                                                               IPC CROSS-BORDER E-COMMERCE SHOPPER SURVEY 2020            19
SUSTAINABILITY
      PREFERENCES
      Preference highest for recyclable and reusable packaging
      Respondents were presented with several statements related to sustainable packaging, and were asked the extent to which they
      agree with them. Agreement was highest for “Would like packaging material to be recyclable” (48% strongly agreed), followed
      by “Would like packaging material to be reusable” (41%). Agreement was lower for the final two statements, regarding over-
      packaging and clear instructions on packaging.

             I would like the packaging material                                                                                                                         3% 2%
                                                                                        48%                                  20%                 14%           8%
                 of my parcels to be recyclable
                                                                                                                                                                          1%

             I would like the packaging material                                                                                                                     4%       3%
                                                                                    41%                                22%                 17%               10%
                   of my parcels to be reusable
                                                                                                                                                                          2%

             I would like the packaging material                                                                                                                    4%     3%
                                                                                  39%                                20%              18%                11%
             of my parcels to be biodegradable
                                                                                                                                                                         2%

                 I already recycle the packaging
                                                                                  39%                                20%             17%               10%         6% 3% 5%
                        material of all my parcels

             I dislike when my online purchases
                                                                              33%                              19%            18%                12%         7%     4%    7%
                             are over-packaged

           I would like clear instructions on my
                                                                              32%                              20%             19%                13%          6% 3% 5%
       packaging to help me properly recycle it

              7 – Strongly agree                  6                5                4               3            2           1 – Strongly disagree                  I don’t know

      Question: To what extent do you agree with each of the following statements on the topic of packaging?
      Sample: 33,594

20   INTERNATIONAL POST CORPORATION
Despite good intentions, few have changed behaviour due to
sustainability concerns
Respondents were presented with several statements related to sustainable (carbon-neutral) delivery, and were asked the extent
to which they agree with them. Thirty-one percent of respondents strongly agreed that they would prefer carbon-neutral delivery,
while 27% would be willing to receive the parcel later to reduce the environmental impact. Despite these positive intentions, a
smaller percentage said they had actually changed their online shopping behaviour due to sustainability concerns.

 I would prefer the delivery of my parcels
                                                                      31%                               22%                          20%            11%    5% 3% 6%
                     to be carbon-neutral

  Willing to receive a package a few days
                                                                   27%                           20%                       21%                14%         6% 3% 5%      5%
 later to reduce the environmental impact

Changed online shopping behaviour in the
                                                         10%           12%                18%                    16%             11%       9%             21%
  last year due to sustainability concerns

        7 – Strongly agree                  6               5                4               3               2                1 – Strongly disagree             I don’t know

Question: To what extent do you agree with each of the following statements on the topic of sustainable (carbon-neutral) delivery?
Sample: 33,594

                    IPC Sustainability Programme
                    IPC Sustainability Measurement and Management System (SMMS)

The IPC Sustainability Measurement and Management                                           The new system has been launched after the achievement of
System (SMMS) was launched in 2019 to address the                                           the targets set in 2008 in the Environmental Measurement and
sustainability objectives of the postal sector for the next                                 Monitoring System (EMMS). The EMMS was developed in 2008
ten years, aligned with the UN Sustainable Development                                      in response to stakeholder and postal CEO requests for the
Goals (SDGs). It expands on the 2009-2019 Environmental                                     postal sector to minimise its carbon footprint. A global initiative,
Measurement and Monitoring System (EMMS) programme,                                         involving 19 participants from four continents – Africa, Asia
which focused on reducing carbon emissions, and broadens                                    Pacific, Europe and North America - the programme provided
the remit to the seven sustainability focus areas most                                      a common carbon measurement and reporting structure that
relevant for the postal sector: Health and safety; Learning                                 enabled participants to share their carbon and environmental
and development; Resource efficiency; Climate change; Air                                   management strategies, performance, and achievements.
quality; Circular economy and Sustainable procurement.
                                                                                            Since 2008, the group managed to achieve a carbon emissions
                                                                                            reduction of 31% and improved carbon management from 56
                                                                                            to 91%.

                                                                                                                 IPC CROSS-BORDER E-COMMERCE SHOPPER SURVEY 2020               21
IPC MARKET
      INTELLIGENCE
                                                                                                                                   IPC Global Postal Industry Report
                                                                                                                                   The IPC Global Postal Industry Report is the
                                                                                                                                   sector’s most comprehensive, holistic and in-depth
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            GLOBAL POSTAL                                                                                                          • Over 130 pages of industry-specific analysis

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            REPORT 2020                                                                                                            • Worldwide coverage of 53 postal operators

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                                                                                                                                     and business unit performance
            and trends
                                                                                                                                   • Solid foundation to benchmark performance
                                      MARKET INTELLIGENCE
                                                                                                                                     and better understand industry trends
                                134 pages
           download             November 2020                www.ipc.be

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                                                                                                                                                                                                                                                                                                                                               the report
                                                                                                                                     non-members

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                                                                                                                                   IPC Carrier Intelligence Reports provide instant access to critical financial,
                                                                                                                                   operational, strategic and market information for more than 50 leading
                                                                                                                                   postal and parcels operators from Africa, the Americas, Asia Pacific and
            CARRIER INTELLIGENCE                                                                                                   Europe in an easy-to-read, consistent format. The reports are free to
            REPORT                                                                                                                 download for IPC members and available for purchase and immediate
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                                          March 2020
              © 2020 – ipc.be                               www.ipc.be

                                                                              Contents                               Executive summary                    Country profile                Performance                            Appendix

                                                                                               NETHERLANDS: E-COMMERCE
                                                                          M-commerce will account for almost a third of total e-commerce in five years

                                                                             E-COMMERCE SALES                                                                       E-COMMERCE PER CAPITA                                                           E-COMMERCE MATURITY
                                                                                         M-commerce               Other e-commerce              CAGR                               Netherlands        Europe                                            Share of total retail sales:        M-commerce           Other e-commerce
                                                                                                                                                                     €2,000
                                                                                                                                                                                                                                                         25%                                                                     +13.2
                                                                                                                                     +11.3%                                                                                            1,715
                                                                                                                                                                     €1,500                                                                              20%

                                                                                                            +17.3%                            €18,614m                                                                                                   15%
                                                                                                                                                                     €1,000
                                                                                                                                                                                                                                        925
                                                                                                                                                                                                                                                         10%
                                                                                                                       €11,568m
                                                                                                                                                                       €500
                                                                                                                                                                                                                                                          5%
                                                                                          €7,023m                                              €8,188m
                                                                                                                       €4,134m
                                                                                          €1,281m                                                                        €0                                                                               0%
                                                                                               2015                      2019                   2024(f)                       15   16    17      18    19      20(f) 21(f) 22(f) 23(f) 24(f)                   15    16      17        18   19   20(f)   21(f)   22(f)   23(f)   24(f)

                                                                             LEADING E-COMMERCE SECTORS                                                             LEADING E-RETAILERS                                                 ANALYST NOTE
                                                                                                                                                                                                                                        In 2018, 84% of internet users in the Netherlands – equivalent to
                                                                                         20%
                                                                                                                                                                                                                                        just under three quarters of the total population – bought goods
                                                                          CAGR 2019-24

                                                                                                                                                                                                            Market share
                                                                                                                                                                     E-retailer
                                                                                                                                       Food and drink
                                                                                                                                                                                                         2015           2019            online. E-commerce sales per capita exceeded €1,000 for the first
                                                                                         15%
                                                                                                           Homewares and home furnishings                                                                                               time in 2019, almost twice the European average spend per
                                                                                                                                                                     Ahold Delhaize                      6.6%          15.7%            capita. By 2024, e-commerce spend per capita is set to reach
                                                                                         10%                                                                         Coolblue                            4.5%           7.5%            €1,715, with the e-commerce market equating to 21.9% of the
                                                                                                 Consumer electronics
                                                                                                                                                                                                                                        country’s total retail sales.
                                                                                                                                                                     Zalando                             5.2%           6.2%
                                                                                         5%                                        Apparel and footwear                                                                                 Amazon will launch its Dutch marketplace during 2020. The
                                                                                                                                                                     RFS Holding                         7.1%           4.0%            company has previously served the Netherlands through its
                                                                                                                  Media products                                     Apple                               2.5%           3.1%            German platform, offering next-day delivery for around 3.0m
                                                                                         0%
                                                                                               3%     6%     9%      12% 15% 18% 21% 24% 27% 30% 33%                                                                                    items from fulfilment centres in Germany. Current market leaders
                                                                                                                                                                     Other                              74.1%          63.5%
                                                                                                                                                   CAGR 2015-19
                                                                                                                                                                                                                                        in the Netherlands include bol.com and supermarket Albert Heijn,
                                                                                                                                                                                                                                        both of which are owned by Ahold Delhaize.
                                                                           Source: Euromonitor International, IPC analysis
                                                                           Note: Regional values refer to unweighted averages calculated using data from 54 countries based upon IPC’s regional classification. European averages are based upon data from 32 countries. Bubble size for leading e-commerce sectors refers to
                                                                           relative share of e-commerce sales.

                                                                          © 2020 - ipc.be                                                                                                CARRIER INTELLIGENCE REPORT                                                                                                                     12

                                                                                                                                                                                                                                                                                                                                               more info

22   INTERNATIONAL POST CORPORATION
Survey methodology
Scope of the research
The IPC Cross-Border Shopper Survey 2020 took place in 40 countries: Austria*, Australia*, Belgium*, Canada*, China*, Croatia,
Cyprus, Denmark*, Estonia, Finland*, France*, Germany*, Greece*, Hungary*, Iceland*, Indonesia, Ireland*, India, Italy*, Japan,
Latvia, Lithuania, Luxembourg*, Mexico, Morocco, the Netherlands*, New Zealand*, Nigeria, Norway*, Poland, Portugal*, Russia,
Slovenia*, South Africa, South Korea, Spain*, Sweden*, Switzerland*, the United Kingdom* and the United States*.

* indicates the 25 countries included in the five-year trend analysis

Target group
Frequent cross-border online shoppers, who have bought physical goods online at least once in the last three months and have
made a cross-border online purchase in the past year. The target group was determined by quotas based on the age and gender
profile of the online population per country.

Methodology
Quantitative research using online access panels supplied by Dynata. Fieldwork took place in October 2020.

Sample size
33,594 completed responses for all the markets. The sample size was between 100 and 1,000 respondents per country.

Access to the full research findings and reports for each of the 40 countries is restricted to IPC members www.ipc.be/shopper.

About International Post Corporation
International Post Corporation (IPC) is the leading service provider of the global postal industry that provides leadership by driving
service quality, interoperability and business-critical intelligence to support posts in defending existing business and expanding
into new growth areas. It is a cooperative association of 25 member postal operators in Asia Pacific, Europe and North America.

IPC’s solutions and services are used by over 180 posts worldwide. Since 1989 IPC has set standards for upgrading quality
and service performance and developed technological solutions that help members enhance service for international letters,
packets and parcels. IPC engages in industry research, creates business-critical intelligence, provides a range of platforms
and programmes for member post CEOs and senior management to exchange best practices and discuss strategy. IPC also
manages the system for incentive-based payments between postal operators.

For more information please visit our website at www.ipc.be.

                                                                                  IPC CROSS-BORDER E-COMMERCE SHOPPER SURVEY 2020        23
CROSS-BORDER E-COMMERCE SHOPPER SURVEY 2020
                                 INTERNATIONAL POST CORPORATION

International Post Corporation
Avenue du Bourget 44
1130 Brussels, Belgium
Tel +32 (0)2 724 72 11
www.ipc.be
info@ipc.be
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