how e-commerce is shaping a new regulatory framework for the european parcel delivery market

© Cullen International SA 2017

How E-commerce is shaping a new regulatory framework for the

European parcel delivery market

Virginie Alloo

Barcelona, May 26, 2017

© Cullen International SA 2017 2

Agenda

•  E-commerce and parcel delivery – A new ecosystem

•  Why a regulatory focus on parcel delivery? •  Improving consumer trust •  Increasing price transparency

•  The existing EU rules (and gaps) applying to delivery

•  Existing postal rules •  Existing consumer protection rules

•  Conclusion


Consumer

Parcel operator E-retailer

E-commerce and parcel delivery A new ecosystem

DELIVERY


Why a regulatory push on parcel delivery? National online shopping

EU Target 50% in 2015

Source: Eurostat – May 2015


Why a regulatory push on parcel delivery? Cross-border online shopping

EU Target 20% in 2015

Source: Eurostat – May 2015


Delivery as a factor for not selling online

Source: Commission staff working document – DSM, May 2015


Commission wants more regulation to

Increase consumer

trust

Decrease delivery prices


EU key initiatives on delivery since 2012

Communication on e-commerce

Green paper

Commission Road map DSM strategy

Draft Regulation on cross-border parcel delivery

2012

2013 2015

2016


Draft Regulation on cross-border delivery

Transparency on services and prices

Access regulation?

More regulatory oversight


The postal rules The existing rules and…. gaps

EU definition of postal services

Essential requirements


Essential requirements on

•  Confidentiality of correspondence •  security of the network for transport of dangerous

goods; •  Respect for the terms and conditions of employment

and social security schemes •  Data protection and •  Environmental protection and regional planning


Who are postal service providers?

CY

MT

LU

Countries where express services are clearly stated to be outside the scope of postal regulation

Countries where express services are considered to be within the scope of postal regulation

“express services” are often regulated


What are “express services”? “express services” are often not defined

Defined Not defined

Inside scope

Outside scope


Delivery flexibility

CY

MT

LU

Permitted (opt-out)

Unregulated

Permitted (but limited)

delivery to third parties not expressly permitted

… except in: AT, HR, UK

Not permitted


EU consumer protection rules

Before ordering is

made

When delivering

When goods are returned following

withdrawal


Before ordering is made

Online seller à consumer

Information on delivery and return

costs (including cost estimates for return

of bulky goods)

Information on delivery options and

time

Parcel operator à online seller

Detailed tariffs communication

Delivery options

Stated in CRD Derived from CRD


When delivering


Goods to be delivered within the

agreed period, at the latest within 30 days

Risk passes to consumers or a third party of their

choice only at the moment of delivery

Parcel operator à online seller

Effective delivery in line

with the contract Forspecificdeliverycontractsbetweencarrierandconsumer

Stated in CRD Consequences from CRD


When goods are returned

Consumer à online seller

Return the good within 14 days

following withdrawal

notification to seller

Consumer should bear the cost of returning

goods except if online seller has agreed to

bear the cost or failed to inform him that he

should bear it

Parcel operator à online seller or consumer

Effective return is key for consumers to get reimbursed


Reimbursement including cost of standard delivery within 14 days

following consumer withdrawal notification

Reimbursement could be postponed until return of goods

Derived from CRD Stated in CRD


Observations

•  Delivery is considered as a key factor for (not) buying online. •  The EU Commission is of the view that additional regulatory

oversight is the key to achieve more transparency and thus decrease delivery tariffs.

•  The existing postal rules fail to be clear and flexible for B2C parcel delivery:

•  No consistent definition of postal services or how express services will be treated

•  Often a lack of clarity as well •  Regulations are applied unevenly and inconsistently across

market players and EU member states •  Delivery is at the cross-roads between, at least, two different regulatory

frameworks: postal rules and a series of rules aimed at increasing consumer trust when buying online. This complexity creates uncertainty which is not good for the development of business in a rapidly changing environment.

E-commerce is complicating the regulatory framework


[email protected]

how e-commerce is shaping a new regulatory framework for the european parcel delivery market

Presentations & Public Speaking