Title: Meeting the E commerce customer needs – a postal view This presentation will cover the ecommerce landscape, the priorities for meeting customer needs in the cross border market and present some contemporary experience from a Royal Mail perspective.

1. P O W E R E D B Y :
Logistics&Carriers
Stream
“Meeting the eCommerce customer needs –
a postal view“
ANDY
PICKERING
International Network Director

2. The Cross Border eCommerce Market.
Meeting the customer’s needs.
Andy Pickering
International Network Director

3. • Delivering to over 230 Countries and territories worldwide
• Exported over 50,000 tonnes of mail and parcels last year – 53% sent by air
• Over 50 airlines used daily
• Injecting items into multiple destinations in USA/Canada/Australia/China
• Long standing partnerships with postal authorities across the globe
• Creating new capability using Royal Mail owned European parcel carrier GLS and partnering with
other parcel carriers in key countries
• Growing our network through the recent acquisition of parcel carriers globally (DICOM in
Canada, GSO in USA)
• Automated Worldwide Hub Heathrow using market leading mechanisation and technology
Royal Mail delivers across the globe

4. Global Postal Operators - Meeting the customer needs
1.The eCommerce
landscape
2.Improvement
Opportunities
3.The Royal Mail
approach

5. Export
Country
% of
purchases
China
36%
Germany
13%
UK
12%
US
11%
Product
Category
Clothing
31%
Electronics
21%
Health
17%
Product
Value
Under
£5 -9%
£5-£25
31%
£25-
£50
21%
Parcel
Weight
Less
than
0.1kg
9%
0.1kg -
0.5kg
41%
0.6kg-
1kg
21%
1.1kg-
2kg
12%
2.1kg -
5kg 6%
>5kg
4%
Didn’t know 6%
Source: IPC CROSS-BORDER E-COMMERCE SHOPPER SURVEY 2018
** Royal Mail Delivery Matters 2017 & 2018
£195 to
£383** spend
over a 3 month
period
Cross Border eCommerce - the current landscape according to IPC Research
2018

6. Purchase to
delivery
timescales
25%
Delivery time
convenience
10%
Delivery costs
9%
Tracking
8%
Customs
6%
Working throughout the supply chain from point of sale to delivery
is vital to join these together to solve the customer pain points
89%**
International
shoppers
satisfied with
latest delivery
Source: IPC CROSS-BORDER E-COMMERCE SHOPPER SURVEY 2018
** Royal Mail Delivery Matters 2018
IPC Research shows what’s important to global customers

7. Provide faster cross
border delivery
Provide more tracking
data
Provide more choice in
delivery times
Provide more choice in
delivery locations
Access to standard parcel carrier capability
Source: IPC CROSS-BORDER E-COMMERCE SHOPPER SURVEY 2018
IPC Research - Areas of focus for eCommerce service providers

8. 1. Returns: a simple process for the consumer and the retailer
2. Customs: no hassles or hold-ups creating a good customer experience
3. No hidden charges: a price that includes delivery and all other charges
4. Websites: a great in-country experience which the retailer does not have to replicate to sell in multiple countries
5. Payment: with their usual credit card wherever the retailer is located
Overseas online buyers and sellers want:
Feedback from Royal Mail customers also shows….

9. Customer
knowledge -
understanding of
the market/
delivery options
Speed and
reliability
– a given !
Constant
attention –
immediate
feedback if we
don’t
Fear of
traditional
postal
customs
– data
provision /
green lane
options
Contingencies
– alternative
delivery
channels to
maintain
constant
service
Tracking
data and
visibility
Delivery
confirmation
and returns
process hugely
important to
etailers own
business
process
Outcome
determined
by final mile
delivery
provider and
their
capabilities
Working in partnership with a major eCommerce customer sending to the USA

10. The Cross Border eCommerce Market.
Meeting the customer’s needs.