Abstract
In the past, prices for cross-border parcels have been perceived of being too high by some observers. Economists would generally expect that growing volumes, increasing economies of scale, and increased competition lead to lower prices. This paper analyses whether the expected impact can already be observed: It analyses prices for consumer parcels and, where available, average revenues per unit. The paper covers Austria, Belgium, Czech Republic, Germany, Ireland, the Netherlands, Portugal, Spain, Sweden, and the United Kingdom. We ultimately conclude that there are weak indications that competition and economies of scale are putting downward pressure on prices for cross-border parcels, and are thus driving prices to the politically desired direction.
This paper presents the personal views of the authors only and should not be interpreted as the views of WIK or of any clients of WIK.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
- 2.
Council of the European Union (2017), Proposal for a Regulation of the European Parliament and of the Council on cross-border parcel delivery services - General approach, 31 May 2017.
- 3.
Based on E-commerce Europe (2016), European B2C E-commerce Report 2016.
- 4.
Based on Eurostat data for share of individuals buying online from other countries in 2011 and 2016.
- 5.
Hermes, the German-based delivery operator of e-commerce items (owned by retail company Otto Group), has tried market entry in Austria about a decade earlier and had likewise built up an extensive parcel shop network (known as ‘Hermes-shops’ in Austria). However, Hermes stopped own delivery operations in 2009 and now cooperates with Austrian Post for delivery of Hermes parcels.
- 6.
See e.g. Copenhagen Economics (2016).
- 7.
See research by Claes and Vergote (2015), Econometric study on parcel list prices.
- 8.
In addition to consumer parcel products, most universal service providers offer discounted parcel prices for large amounts of parcels with specific service features sent by business customers. The regulatory framework for business parcels differs significantly in all Member States. In some Member States, all or part of ‘bulk parcels’ offered to business customers are considered to be within the scope of the USO while they are outside the scope of USO in other Member States. See WIK-Consult (2013), Main Developments in the Postal Sector (2010–2013), Study for the European Commission, Directorate General for Internal Market and Services, p. 129.
- 9.
In Austria, the share of heavy parcels (above 10 kg) is about one quarter of all parcels according to market statistics of RTR. Combined with the high share of cross border parcels, this may explain high average revenues per unit in Austria.
- 10.
This refers to single-piece parcel products posted at the counter which fall under the scope of USO. However, universal service regulation is different in many Member States, as shown by WIK-Consult (2013), Main Developments in the Postal Sector (2010–2013), Study for the European Commission, Directorate General for Internal Market and Services, p. 129.
References
Claes, A and Wouter Vergote (2015), Econometric study on parcel list prices, Final Report for European Commission, DG GROW
Copenhagen Economics (2016), Principles of e-commerce delivery prices, 9 February 2016
Council of the European Union (2017), Proposal for a Regulation of the European Parliament and of the Council on cross-border parcel delivery services - General approach, 2016/0149 (COD) of 31 May 2017
DHL (2017), https://www.dhlpaket.at/de/privatkunden.html [4 May 2017]
DPD (2017), https://www.dpd.com/at_privatecustomers?mode=receive#!returns [4 May 2017]
E-commerce Europe (2016), European B2C E-commerce Report 2016
European Commission COM (2016) 285 final: Proposal for a Regulation of the European Parliament and of the Council on cross-border parcel delivery services, 25 May 2016.
European Commission SWD (2016) 166 final: Impact assessment accompanying the document COM (2016) 285 final (Proposal for a Regulation on cross-border parcel delivery services), 25 May 2016.
Ofcom (2016), The International Communications Market 2016, Post
RTR (2016), RTR Post Monitor, Jahresbericht 2015, Juni 2016.
WIK-Consult (2013), Main Developments in the Postal Sector (2010-2013), Study for the European Commission, Directorate General for Internal Market and Services, Bad Honnef, August 2013
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2018 Springer International Publishing AG
About this chapter
Cite this chapter
Thiele, S., Dieke, A.K. (2018). The Impact of Competition on Consumer Prices for Cross-Border Parcels. In: Parcu, P., Brennan, T., Glass, V. (eds) The Contribution of the Postal and Delivery Sector. Topics in Regulatory Economics and Policy. Springer, Cham. https://doi.org/10.1007/978-3-319-70672-6_18
Download citation
DOI: https://doi.org/10.1007/978-3-319-70672-6_18
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-70671-9
Online ISBN: 978-3-319-70672-6
eBook Packages: Economics and FinanceEconomics and Finance (R0)