E-commerce 15 Conference
Vilnius – 19.03.2015
Ship global,
deliver local
Cross-border e-commerce,
a booming but challenging market
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Who we are
Everyday we are moving 1 million
B2C parcels,
delivering them across Europe,
and our volumes of cross-border e-commerce
keep on growing
19.03.2015
B2C e-commerce sales in
2014 (billion)
€425.5
B2C e-commerce sales
growth rate in 2014
+16,7 % 2.9
Number of B2C
e-commerce
parcels (billion)
% cross-border
e-commerce
sales
14%
Estimated number of active
B2C websites
645,000+
Ecommerce 15 Conference Lithuania
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Source: Ecommerce Europe
What we observe is not only the fantastic growth of
e-commerce in Europe….
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Source: Ecommerce Europe, 2014 report
% of B2C cross-border purchase orders
…but also that cross-border e-commerce is gaining
ground in most of the European countries…
0%
10%
20%
30%
40%
50%
60%
70%
2012 2013
19.03.2015
377 407 436 462
69 83 99 116
2015 2016 2017 2018
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Source: EMOTA, 2013
…and this trend will continue in the coming years.
European e-commerce market forecast (in € Billion)
20%15%
Cross-border : average growth / year +20%
Domestic : average growth / year +8%
19.03.2015
5%
10%
11%
11%
12%
14%
15%
18%
29%
29%
32%
0% 5% 10% 15% 20% 25% 30% 35%
Estonia
Finland
Germany
Spain
France
EU average
Netherlands
Latvia
United Kingdom
Poland
Lithuania
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Sources: DPDgroup internal market research based on 2013 data
% growth of cross-
border B2C export
parcels in 2013
Consequently, exports of B2C parcels have boomed
19.03.2015
“In my opinion, cross-border e-commerce
is one of the most important current trends
in retail. However, many shop owners
underestimate the related time-consuming
work and the problems that appear when
one enters a foreign market.”
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Henning Heesen, Cross-Border E-
Commerce Specialist and Board
Member at Salesupply AG (source:
Ecommerce Europe)
However cross-border e-commerce is challenging
19.03.2015
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People pay their online shopping differently across Europe
6%
85%
25%
89% 85%
23%
94%
37%
90%
47%
38%
15%
47% 21%
55%
35%
15% 16%
11%
12%
7% 6%
8%
10%
20%
1%
Poland France Germany Ireland Italy Netherlands Spain Sweden UK
Online Payment methods across Europe
Card COD Direct Debit Direct Transfer E-Wallet Invoice SMS
Sources: Ayden Report 2013, bank of Poland 2011
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Cross-border e-commerce landscape
• Germans return nearly 1 parcel out of 3… even more when it comes to shoes and clothes
• Nearly 10% of French are not at home whilst knowing they have ordered a delivery at home
• You can deliver a parcel to a neighbour in the United Kingdom in case people are not at home
• In Poland recipients like to pay at reception
19.03.2015
Contrast between countries in usage and expectations on delivery
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On cross-border ‘’Diversity’’ is more important than ‘’Price’’
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Wide range of different delivery
service options
with different price levels
Limited range of delivery
service options
but at a low costs
Domestic Cross-border
Note: % e-retailers that have answered the question ‘’How important to your business do you consider the
following features of delivery services?’’ with ‘’somewhat important’’ or ‘’very important’’.
Source: Copenhagen Economics, E-retailer survey
E-retailers expecting wide range of service and reliability
19.03.2015
The solution is
delivering the local way
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Customer Case 1 : looking for the best cost-effective
solution for delivery
Expanding from France
to Belgium, Netherlands
and Germany, this e-
retailer was looking for a
simple way to deliver
abroad, keeping the
same promise to its
customers.
DPD’s Pickup network
was the most suitable
solution.
A fashion e-retailer was
offering free delivery to
customers all across
Europe.
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Customer case 2 : looking for faster transit time and
Track&Trace
Faster lead times and
Track & Trace began to
be key to keep customer
shopping sending their
pictures to be printed.
DPD CLASSIC EUROPE
was the best solution for
its exports.
Our photo printer
customer realized that for
its business that offering
delivery was not enough
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Customer Case 3: Looking for a provider addressing
one’s specific needs
DPD’s solution for this
collection requirement
was the most flexible
A food e-retailer was
requesting collection of
used capsules at e-
shopper’s home in
Belgium and Pickup
parcelshop in Portugal.
We are international delivery experts
16
Number of parcels we
deliver every single day
3 million
Revenue in 2014 (billion)
€4.9 864
Number of parcels
delivered
in 2014 (million)
Volume growth
10,7%
Number of delivery experts
46,000
Ecommerce 15 Conference Lithuania 19.03.2015
1,5
1,7
3,3
3,5
We are ahead of the competition and continue to grow
across Europe
No 1 for domestic
parcel delivery
across Europe
11% market
share in Europe
47% revenue
growth in 5 years
11% 3.4 3.7
4.1
4.4
4.9
Combined 2013 revenue for domestic
parcel delivery in € (billions)
DPDgroup revenue in € (billions)% of Courier Express Market by volume
Source: DPDgroup internal marketing research, 2013 data
DPDgroup
DHL Paket
GLS
TNT
17Ecommerce 15 Conference Lithuania 19.03.2015
Pickup network
The ultimate convenience for your customers
18
Number of Pickup points
across Europe as of
January 2015
More than
16,000 6*
Number of opening
days
More than
6,000
% of the European population
who has a Pickup points in
less than 15 min drive away
95%*
Number of Pickup
points planned for
2015
* Belgium, France, Germany, Luxembourg and the Netherlands
Ecommerce 15 Conference Lithuania 19.03.2015
Our European Pickup network
The network offering the best coverage in Europe
100
150
480
1 000
Network in 2014
Network in 2015
Network in 2016
Number of Pickup points:
2014: 16 000
2015: 22 000
2016: 26 000
19Ecommerce 15 Conference Lithuania 19.03.2015
Predict
The ultimate flexibility for you and your customers
20
Efficiency
Delivery in a specific time
window means there’s a
higher chance we can
deliver first time round
Convenience
It’s easy for customers to
change their mind, and
find a more convenient
time
Peace of mind
Your customers always
know when their parcel is
going to be delivered
Ecommerce 15 Conference Lithuania 19.03.2015
Predict
1 hour time window for 20 countries in 2015
January 2015
Q1 2015
Q2 2015
21Ecommerce 15 Conference Lithuania 19.03.2015
Ship global, deliver local
22Ecommerce 15 Conference Lithuania
Complementary
delivery solutions
High flexibility of
services
for consignees
19.03.2015

Logistic solutions: ship global, deliver local

  • 1.
    E-commerce 15 Conference Vilnius– 19.03.2015 Ship global, deliver local
  • 2.
    Cross-border e-commerce, a boomingbut challenging market 01/26/2015Ecommerce 15 Conference Lithuania 2
  • 3.
    Ecommerce 15 ConferenceLithuania 3 Who we are Everyday we are moving 1 million B2C parcels, delivering them across Europe, and our volumes of cross-border e-commerce keep on growing 19.03.2015
  • 4.
    B2C e-commerce salesin 2014 (billion) €425.5 B2C e-commerce sales growth rate in 2014 +16,7 % 2.9 Number of B2C e-commerce parcels (billion) % cross-border e-commerce sales 14% Estimated number of active B2C websites 645,000+ Ecommerce 15 Conference Lithuania 4 Source: Ecommerce Europe What we observe is not only the fantastic growth of e-commerce in Europe…. 19.03.2015
  • 5.
    Ecommerce 15 ConferenceLithuania 5 Source: Ecommerce Europe, 2014 report % of B2C cross-border purchase orders …but also that cross-border e-commerce is gaining ground in most of the European countries… 0% 10% 20% 30% 40% 50% 60% 70% 2012 2013 19.03.2015
  • 6.
    377 407 436462 69 83 99 116 2015 2016 2017 2018 Ecommerce 15 Conference Lithuania 6 Source: EMOTA, 2013 …and this trend will continue in the coming years. European e-commerce market forecast (in € Billion) 20%15% Cross-border : average growth / year +20% Domestic : average growth / year +8% 19.03.2015
  • 7.
    5% 10% 11% 11% 12% 14% 15% 18% 29% 29% 32% 0% 5% 10%15% 20% 25% 30% 35% Estonia Finland Germany Spain France EU average Netherlands Latvia United Kingdom Poland Lithuania Ecommerce 15 Conference Lithuania 7 Sources: DPDgroup internal market research based on 2013 data % growth of cross- border B2C export parcels in 2013 Consequently, exports of B2C parcels have boomed 19.03.2015
  • 8.
    “In my opinion,cross-border e-commerce is one of the most important current trends in retail. However, many shop owners underestimate the related time-consuming work and the problems that appear when one enters a foreign market.” Ecommerce 15 Conference Lithuania 8 Henning Heesen, Cross-Border E- Commerce Specialist and Board Member at Salesupply AG (source: Ecommerce Europe) However cross-border e-commerce is challenging 19.03.2015
  • 9.
    Ecommerce 15 ConferenceLithuania 9 People pay their online shopping differently across Europe 6% 85% 25% 89% 85% 23% 94% 37% 90% 47% 38% 15% 47% 21% 55% 35% 15% 16% 11% 12% 7% 6% 8% 10% 20% 1% Poland France Germany Ireland Italy Netherlands Spain Sweden UK Online Payment methods across Europe Card COD Direct Debit Direct Transfer E-Wallet Invoice SMS Sources: Ayden Report 2013, bank of Poland 2011 19.03.2015
  • 10.
    Ecommerce 15 ConferenceLithuania 10 Cross-border e-commerce landscape • Germans return nearly 1 parcel out of 3… even more when it comes to shoes and clothes • Nearly 10% of French are not at home whilst knowing they have ordered a delivery at home • You can deliver a parcel to a neighbour in the United Kingdom in case people are not at home • In Poland recipients like to pay at reception 19.03.2015 Contrast between countries in usage and expectations on delivery
  • 11.
    Ecommerce 15 ConferenceLithuania 11 On cross-border ‘’Diversity’’ is more important than ‘’Price’’ 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Wide range of different delivery service options with different price levels Limited range of delivery service options but at a low costs Domestic Cross-border Note: % e-retailers that have answered the question ‘’How important to your business do you consider the following features of delivery services?’’ with ‘’somewhat important’’ or ‘’very important’’. Source: Copenhagen Economics, E-retailer survey E-retailers expecting wide range of service and reliability 19.03.2015
  • 12.
    The solution is deliveringthe local way 01/26/2015Ecommerce 15 Conference Lithuania 12
  • 13.
    Ecommerce 15 ConferenceLithuania 13 Customer Case 1 : looking for the best cost-effective solution for delivery Expanding from France to Belgium, Netherlands and Germany, this e- retailer was looking for a simple way to deliver abroad, keeping the same promise to its customers. DPD’s Pickup network was the most suitable solution. A fashion e-retailer was offering free delivery to customers all across Europe.
  • 14.
    Ecommerce 15 ConferenceLithuania 14 Customer case 2 : looking for faster transit time and Track&Trace Faster lead times and Track & Trace began to be key to keep customer shopping sending their pictures to be printed. DPD CLASSIC EUROPE was the best solution for its exports. Our photo printer customer realized that for its business that offering delivery was not enough
  • 15.
    Ecommerce 15 ConferenceLithuania 15 Customer Case 3: Looking for a provider addressing one’s specific needs DPD’s solution for this collection requirement was the most flexible A food e-retailer was requesting collection of used capsules at e- shopper’s home in Belgium and Pickup parcelshop in Portugal.
  • 16.
    We are internationaldelivery experts 16 Number of parcels we deliver every single day 3 million Revenue in 2014 (billion) €4.9 864 Number of parcels delivered in 2014 (million) Volume growth 10,7% Number of delivery experts 46,000 Ecommerce 15 Conference Lithuania 19.03.2015
  • 17.
    1,5 1,7 3,3 3,5 We are aheadof the competition and continue to grow across Europe No 1 for domestic parcel delivery across Europe 11% market share in Europe 47% revenue growth in 5 years 11% 3.4 3.7 4.1 4.4 4.9 Combined 2013 revenue for domestic parcel delivery in € (billions) DPDgroup revenue in € (billions)% of Courier Express Market by volume Source: DPDgroup internal marketing research, 2013 data DPDgroup DHL Paket GLS TNT 17Ecommerce 15 Conference Lithuania 19.03.2015
  • 18.
    Pickup network The ultimateconvenience for your customers 18 Number of Pickup points across Europe as of January 2015 More than 16,000 6* Number of opening days More than 6,000 % of the European population who has a Pickup points in less than 15 min drive away 95%* Number of Pickup points planned for 2015 * Belgium, France, Germany, Luxembourg and the Netherlands Ecommerce 15 Conference Lithuania 19.03.2015
  • 19.
    Our European Pickupnetwork The network offering the best coverage in Europe 100 150 480 1 000 Network in 2014 Network in 2015 Network in 2016 Number of Pickup points: 2014: 16 000 2015: 22 000 2016: 26 000 19Ecommerce 15 Conference Lithuania 19.03.2015
  • 20.
    Predict The ultimate flexibilityfor you and your customers 20 Efficiency Delivery in a specific time window means there’s a higher chance we can deliver first time round Convenience It’s easy for customers to change their mind, and find a more convenient time Peace of mind Your customers always know when their parcel is going to be delivered Ecommerce 15 Conference Lithuania 19.03.2015
  • 21.
    Predict 1 hour timewindow for 20 countries in 2015 January 2015 Q1 2015 Q2 2015 21Ecommerce 15 Conference Lithuania 19.03.2015
  • 22.
    Ship global, deliverlocal 22Ecommerce 15 Conference Lithuania Complementary delivery solutions High flexibility of services for consignees 19.03.2015