Demand and Regulation for e-Commerce in Goods

Heikki Nikali (), Juri Mattila (), Ilona Rintanen () and Ville Huuhtanen ()
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Heikki Nikali: Posti Ltd.
Juri Mattila: The Research Institute of the Finnish Economy (ETLA)
Ilona Rintanen: Posti Ltd.
Ville Huuhtanen: Posti Ltd.

A chapter in The Future of the Postal Sector in a Digital World, 2016, pp 247-260 from Springer

Abstract: Abstract As paper communication volumes decline, postal operators (POs) are developing parcel delivery-based growth in e-commerce to compensate for revenue lost due to lower letter demand. Optimistic forecasts suggest that e-commerce will grow at an exponential rate. Such projections, however, often overlook the fact that goods only account for 40 % of the total value of e-commerce (Statistics Finland 2014a). Furthermore, the high growth figures for e-commerce are also attributable to higher value purchases than to higher quantity of purchases. Since 2000, the volume of B2C e-commerce in goods has grown by 30 % in Finland, while the monetary value has tripled. There is also a growing trend of online shopping that involves the consumer picking up the goods themselves from a physical store. It would appear that the revenue accrued from these services will only compensate for a small proportion of the revenue lost as a result of the decline in paper communication.

Keywords: Transportation Cost; Online Shopping; Postal Regulation; Online Store; Online Retailer (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1007/978-3-319-24454-9_16

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