The value of express delivery services for cross-border e-commerce in European Union markets

Thai Young Kim, Rommert Dekker and Christiaan Heij

No EI2016-12, Econometric Institute Research Papers from Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute

Abstract: Further growth of cross-border e-commerce in the European Union markets requires improved express delivery services. The framework presented in this paper identifies relevant contextual factors that affect express delivery adoption rates in European cross-border e-commerce. This framework leads to a set of hypotheses, both on the effects of express deliveries on financial performance indicators (order incidence, order size, and repurchase rate) and on the factors that drive demand for express deliveries (consumer income, logistic costs, and lead-time benefits). A case study provides empirical tests of the hypotheses, using data on about forty thousand sales transactions from a consumer electronics manufacturer’s cross-border online shop. The findings are that express delivery has positive effects on financial performance, as it leads to higher order incidence, larger order size, and higher repurchase rates in cross-border transactions. Demand for express delivery services increases with higher income, larger lead-time benefits, and lower logistic costs. Managers can employ the presented framework to formulate and analyse their own targets for performance and express delivery services.

Keywords: e-commerce; express delivery; cross-border; lead-time; logistic cost; centralized distribution centre; order incidence; order size (search for similar items in EconPapers)
Pages: 35
Date: 2016-02-28
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Citations: View citations in EconPapers (3)

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