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Ecommerce is growing and will continue to grow – so far, no surprise. Ecommerce as a part of global commerce is becoming increasingly important: in 2020, ecommerce already accounted for 22% of global retail, and the annual growth (further accelerated by the COVID-19 pandemic) was 26%.
Yet there is still a lot of potential upside. While ecommerce already accounts for 50% of retail in China, resulting in the largest ecommerce market in the world by far, the share in most Western countries is between 10-15% (with the exception of the UK at 23%).
Marketplaces with their associated platform economies are extremely successful and seemingly unstoppably expanding their dominance: in 2020, more than 75% of all ecommerce revenue was generated through marketplaces, more than 50% of which through Ali, Amazon and JD alone.
"Old”, traditional, store-based retailing has been largely written off, seen as having no chance against the highly efficient and digitalized ecommerce service providers.
This development is irreversible. Consumer needs and preferences, the ever-increasing opportunities offered by digitalization, and the cost and efficiency advantages of data-driven ecommerce service providers make it very likely that ecommerce will continue to grow at the expense of traditional, store-based retail.
While ecommerce is growing, fundamental business models and the market have also been changing since 2020, accelerated by the pandemic. The market and business models are developing rapidly and sustainably – often unnoticed by the general public.
In our new CLS series, the Future of (E)Commerce, we will be highlighting and examining several interesting developments in the market, starting with:
• How the rise of food delivery fundamentally changes business models, customer expectations and ecommerce logistics, even challenging the dominance of electronic interfaces as illustrated by current developments in the USA
• Why omnichannel is becoming a “must have”, and why suddenly traditional retail seems to be holding better cards than the online retailers and marketplaces which currently dominate.
• What Digitalization 2.0 really means, which business models are threatened by future developments, and which ones will benefit.
Watch this space!
Some postal operators are planning to charge postal fees for the Import One Stop Shop (IOSS). What are the options for a more expensive postal channel?
The OSS solution introduced by the EU VAT Ecommerce package is designed to facilitate cross border trade. We believe this will only be a transitional solution.
Austrian newspaper Der Standard talks with CLS experts Walter Trezek and Martin Füll about the impact of the IOSS (in German). Einfuhr-Umsatzsteuer wird ab dem ersten Cent verrechnet, die meisten Kunden dürften dank "Import One Stop Shop" aber von Formalitäten verschont bleiben: Author Georg Pichler, 29 June 2021.
Ecommerce Big Bang Series: The EU VAT e-commerce package and VAT for intra-EU ecommerce. A guide to the simplified VAT payment option, the One Stop Shop (OSS).
Ecommerce Big Bang Series: IOSS Import One Stop Shop – The simplified VAT payment model introduced on 1 July 2021 as part of the EU eCommerce VAT Package.
Ecommerce Big Bang Series: Our guide to the changes coming on 1 July 2021: Before & After – How the EU e-Commerce VAT package impacts B2C e commerce.
Discover the impact of COVID-19 on online sales of products and services, brick-and-mortar business and ecommerce trends 2020 in Ecommerce Europe member survey
Digitalized processes & harmonized labels enhance the security and transparency of global delivery, generating revenue by ending VAT and online retail fraud.
8 factors including mandatory EAD for commercial items and the One Stop Shop (OSS) system for fiscal representation will shape international ecommerce in 2021.
Harmonized UPU & CEN specifications for import customs clearance and presenting LVC creates level playing field for posts & CEP operators from July 2021
Oct 2020: UPU CC Chairman Walter Trezek moderates BNEW session One Stop Global on electronic advanced pre-declaration for cross-border ecommerce globally.