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eCommerce Package Business

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Presentation on theme: "eCommerce Package Business"— Presentation transcript:

1 eCommerce Package Business
Bruce Klein USPS Shipping Product Management February 21, 2018

2 eCommerce Package Business
What is eCommerce? What are the possible different business models? What is most important for customer engagement and retention? How is the Postal Service positioned to support eCommerce?

3 What is eCommerce? eCommerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. These business transactions occur either as business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business.

4 What are the possible different business models?
Distribution Centers (B2C) Distribution Center to Store (B2B) Ship from Store (B2C) Merchant Network (C2C) Fulfillment House (3PL) Returns (C2C/C2B/B2C)

5

6

7 Evolution of B2C by Industry Segment

8 USPS Volume Share of B2C Business Segments

9 User Interface and User Experience
What is most important for customer engagement and retention? User Interface and User Experience Seamless; Simple and Easy Ordering and Return's processes, couple with timely and accurate notifications.

10 Most convenient carrier for returns
2 of 3 Statistics show that the returns experience is the number-one source of pain for online shoppers. Our footprint of over 31,000 retail locations and 155 million pickup and delivery stops nationwide can help you: online consumers would buy more with free returns.1 95% of online customers would repeat business if returns process is simple. 1 Reduce barriers to purchase. Increase customer loyalty. Improve inventory management. Lower costs. 1. "E-Commerce Returns Best Practices," Shorr Packaging Corp., October 14, 2015.

11 How is the Postal Service positioned to support eCommerce?
Where Infrastructure and Technology Meet to Deliver

12 We connect every address, every day
From business to personal and every place in between for over 240 years 225,000+ vehicles 156M delivery points nationwide 31,585 retail outlets More than McDonald’s, Walmart, and Starbucks combined Delivery 7 days/week 5.2 billion packages/year, 506 million mailpieces/day

13 Package processing 24/7, fully integrated, end-to-end processing
Automated Package Processing System (APPS) 9,500 pieces per hour throughput High-accuracy sortation for handwritten and machine-printed addresses

14 Our customers are your customers— our brand is an extension of yours
Delivery expectations are ever changing. Key needs center around: Reliability Visibility Security Value Seamless experience Sustainability

15 Security and confidentiality
The United States Postal Inspection Service® enforces over 200 federal laws related to crimes of theft, fraud and abuse of the U.S. Mail®. The sanctity of your package is the government mandated mission of the U.S. Postal Inspection Service. USPS is the only courier to have their own law enforcement Customer packages are protected by federal law Largest computer network linking 32,000 facilities—all working together to keep your mail and your business safe Secured mail recovery facility for processing any damage or loss packages

16 Of packages are delivered undamaged
99.99% Of packages are delivered undamaged Trusted and Reliable USPS has been named the most trusted government agency for the past five years. In 2017, for the tenth straight year, USPS was named one of the 10 most-trusted companies for privacy in North America.1 Low loss and damage: 99.99% of First-Class parcels and Priority Mail® are delivered undamaged/without loss Most Trusted Companies for Privacy Study, The Ponemon Institute, January 31, 2017  Volume of packages vs Losses & damages

17 Cultivating a sustainable future
Greenhouse gases cut 13.3% since 2008 Americans rank USPS no. 1 of 13 federal agencies (According to a 2016 Gallup poll) Facility energy use reduced 31.4% since 2003 We recycled 223,796 tons of waste Our free packaging meets Sustainable Forestry Initiative or Forest Stewardship Council certification standards Purchased $236 million of environmentally preferable products

18 Outpacing our competitors
In growth and reach While our industry is growing at a rate of 6%, USPS is growing at 16% Key player in e-commerce delivery USPS even takes competitors’ packages the “last mile” for delivery

19 2017 Peak Season Delivery We continue to outpace the competition
We increased holiday operations to deliver for our customers. ~800M Christmas Day delivery in many metros Three shifts per day in key markets 35,000+ seasonal workers ~700M ~355M We continue to outpace the competition in package delivery growth

20 Enhancements in visibility
Innovations that answer our customers’ expectations Improved scanning technology for better tracking and real-time notifications Predictive delivery notifies customers of estimated delivery time within one hour My USPS lets consumers manage incoming packages Informed Delivery™ sends a daily with images of mail that’s on its way

21 Innovative solutions That redefine the customer experience
Sunday delivery Same-day delivery Ship-from-store Grocery and customized delivery Poised for the next big thing

22 Looking forward To a future of transforming the customer
experience through data, infrastructure, and technology World’s third-largest IT infrastructure Upgrading vehicle fleet Deployed 263,000 new Mobile Delivery Device (MDD) scanners nationwide Upgrading retail POS systems and kiosks

23 Innovating mail The Postal Service focus on innovation
extends into mail technology and marketing as well. Irresistible Mail Designed to do more Proven results Tactile, Interactive, Connected

24 Direct mail—solutions that deliver
73% Direct mail delivers of consumers prefer direct mail1 30x higher response rate than 2 Direct mail tops all other media for delivering the highest ROI for B2C marketing3 31% 38% For acquisition For retention 1. Epsilon Channel Preference for Mobile and Non-Mobile 2. Digital Direct Mail Printing in North America: Market Analysis & Forecast (2013–2018), Interquest, November 2013. 3. "Direct mail delivers results," Pitney Bowes, 2015.

25 Direct mail strengthens digital
65% of people who received direct mail made a purchase or responded1 69% are more likely to open a mailpiece with color text and graphics on the front before opening pieces with no headline or graphic2 45% increase in response rates when print is combined with web, , and mobile3 1. Epsilon Channel Preference for Mobile and Non-Mobile 2. Digital Direct Mail Printing in North America: Market Analysis & Forecast (2013–2018), Interquest, November 2013. 3. "Direct mail delivers results," Pitney Bowes, 2015.

26 Partners and Tools Partners PC Postage Shipping Software Tools
Free shipping software Windows-based, Browser, API’s USPS.COM and API’s Informed Delivery Address Tracking Package Pick-up Pricing Service standards

27 Proven Shipping Options
Priority Mail1 envelopes and packages (1-3 days) First-Class Package 1,2 (1-4 days) FAST Priority Mail Express envelopes and packages (Next Day)2 FASTER Multiple International shipping options also available PLUS Parcel Select1 Retail Ground1 Media Mail Bound Printed Matter ECONOMY Returns1 1 Services available for Return Services 2 Some restrictions and certain limitations may apply USPS Tracking included on all barcoded packages

28 Parcel Select Lightweight®
Shipping Solutions First-Class Mail® Priority Mail® Parcel Select® Parcel Select Lightweight® Description Economical, ounce-based Commercial Base® Pricing up to 13 ounces Fast and affordable, date-specified delivery Economical ground service for regular and large packages Affordable presorted parcel ground service for packages that weigh less than 1 pound Delivery time Delivery in 1 to 3 business days1 Domestic delivery averages 2 to 9 business days (not guaranteed service) Domestic delivery averages 2 to 9 business days (not guaranteed service) Tracking/ delivery confirmation Can combine with extra services to confirm delivery Includes free USPS Tracking® online and at retail2 Includes free USPS Tracking for domestic shipments Insurance Insurance for loss or damage up to $5,000 for merchandise only Includes up to $50 of insurance3 with most shipments4 Insurance available for additional fee Dimensional (DIM) weight No DIM weight charges USPS only applies DIM weight pricing to domestic Priority Mail packages over 1 cubic foot shipped to zones 5–9 Surcharges No surcharges for fuel or residential, rural, and regular Saturday delivery Key shipping products USPS has a full range of products to deliver packages in a timely and affordable manner.

29 Parcel Select Lightweight®
Shipping Solutions First-Class Mail® Priority Mail® Parcel Select® Parcel Select Lightweight® Dimensional (DIM) weight No DIM weight charges USPS only applies DIM weight pricing to domestic Priority Mail packages over 1 cubic foot shipped to zones 5–9 Surcharges No surcharges for fuel or residential, rural, and regular Saturday delivery Key shipping products USPS has a full range of products to deliver packages in a timely and affordable manner.

30 Simple solutions USPS makes integration of your systems simple by providing the support you need. Our team of Operations Integration Specialists reduces the time it takes to get up and running with USPS. Payment methods, acceptance, transportation and equipment, packaging, and processing And, our Technical Integration Specialists help you make a seamless IT transition by implementing technologies that make it easier to do business with USPS. USPS Web Tools® (APIs), e-commerce web portal, Electronic Verification System (eVS®), Electronic Data Interchange over Internet, ePostage, PC Postage®, Scan-Based Payment, Barcodes (IMb® and IMpb™)/label/mailpiece certification

31 expectations is critical to our collective success
Exceeding customer expectations is critical to our collective success We put our strengths to work for you. Enduring partnerships and expertise Convenience of our nationwide access Established infrastructure Secure technology infrastructure Emphasis on sustainability Innovative and customized solutions

32 Thank you for your time! Bruce Klein


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