The strength of Amazon's end, especially its own logistics, cannot be underestimated. Today, the news that Amazon will lay out Poland's end market will affect Poland? Recently, Marek Roz, an end-analyst expert at Last Mile Experts Research Institute, shared his views.
Poland's economics growth has been strong over the past few years and is expected to continue to grow. The scale of Poland's e-commerce market is expected to exceed 9.9 billion US dollars by the end of 2019, and it will show double-digit growth by 2023. Poland is therefore considered to be one of the fastest-growing e-commerce countries. E-commerce now accounts for about 7 percent of its total retail sales.
There are not too many e-commerce market players in Poland. The main e-commerce platform Allegro.pl occupies 40% of the market share. This platform started with auctions like eBay at first. In recent years, it has expanded its diversified business, provided its own retail products, and provided a platform for third-party sellers. Fifteen years ago, Allegro won the competition with eBay, compressing eBay to the edge of e-commerce. Interestingly, a few years ago, Allegro was sold to private equity firms for only $ 3.24 billion.
Amazon's entry into Poland did not confront Allegro like eBay, but instead operated several sorting centers, mainly serving German customers and serving as Amazon's R & D center in Poland. After several years of exploration, Amazon has also launched a Polish website on its German platform, which has gradually grown in a "snowball" manner.
AliExpress has already entered Europe, but in Poland it is slower than Allegro and Amazon due to limited delivery options. However, it is operating its Polish website platform through Facebook and is very popular.
There are rumors that Amazon will launch Poland's terminal delivery market within 12 months.
Marek Roz pointed out that Poland's terminal delivery market is also highly competitive. Except for Hermes in Europe, almost all major express delivery companies are involved. Its CEP market size is close to US $ 2.2 billion and it is expected to exceed 500 million parcels. The COD delivery mode in Poland accounts for over 40% of the delivery method, and the market is more complicated.
In Poland, delivery methods are more diverse. The Polish company InPost initially set foot in express cabinets, and currently has about 5,000 express cabinets (including pick-up points). Poland Post is strengthening its cooperation with third-party express cabinet companies such as SwipBox and Bieeronka (Poland's largest discount chain retail store) to expand postal service points with express cabinets. Recently, InPost's express counter business has also caused a great impact on France Post's DPDgroup brand DPD Polska, mainly because InPost has achieved in-depth cooperation with Allegro and other major e-commerce companies.
The development space left by Poland to Amazon is not small. It can use the existing influence and sorting center facilities in Poland to gradually advance or enter the new "greenfield" market. It can become a shareholder or buy Allegro Empik, a traditional physical store competitor, strengthens its strength. Either way will have a greater impact on the "last mile", depending on whether Amazon builds its own logistics or uses third-party logistics. But Amazon's entry to end market is for sure.
At present, InPost's sense of crisis is not obvious. Because Allegro has insufficient capabilities in the "last mile" delivery field, most of its cooperation with its express service company Sendit also relies on Sendit's express cabinets and door-to-door services. And SwipBox's network is still small compared to InPost's network, which means that unless Amazon acquires Allegro, it is possible to expand enough power, which will have a big impact on InPost.
Although Poland Post has also made a lot of efforts to improve customer service, the gap with independent express delivery companies is still large. Poland Post has done a lot in recent years to improve its customer experience, but it is still far from the services offered by other private express delivery companies. The B2C customer experience provided by UPS, FedEx, and GLS has a gap compared to InPost or DPD.
However, DPD also lost its end advantage in the Polish market, which is inferior to InPost's network development capabilities. But with the entry of Amazon, DPD needs to better improve on-site services if it wants to perform well, study from its DPD in the UK, otherwise it will fall behind in the long run.