Two main models dominate cross-border e-commerce: direct shipping and the B2B2C model. In the direct shipping model, goods are sent directly from the country of origin, typically China. This is generally more cost-effective for local sellers due to varying cost structures but involves longer delivery times. In the B2B2C model, goods are transported in containers to the destination region, where they are stored. Orders are then fulfilled from these warehouses, enabling faster delivery times but at higher costs for the sellers. A well-known example of this model in use is Fulfilment by Amazon (FBA). In the direct shipping model, the range of services offered by international consolidators specializing in e-commerce shipments has expanded, evolving from postal-oriented consolidators to logistics-focused ones. Platforms like Shein and Temu, which are vertically integrated and technologically advanced, handle not only sales but also cross-border shipping for their sellers. These developments have led to shorter delivery times in direct shipping and reduced average transport prices due to significant economies of scale and the bargaining power of these platforms with transport and delivery companies.
Until 2020, cross-border shipping was traditionally dominated by postal channels (for low-value goods) and international express delivery services (for high-value goods). However, reforms by the Universal Postal Union (UPU), particularly the introduction of so-called self-declared rates, have led to substantial price increases to better reflect the delivery costs in industrialized countries. At the same time, the quality of international postal services deteriorated during the COVID-19 pandemic, resulting in longer and less reliable delivery times.
The decline in the importance of postal channels has generally intensified competition among delivery service providers. International consolidators are free to choose which service providers they work with in target regions. Nonetheless, the impact on delivery competition in Germany remains limited, as Deutsche Post successfully operates as international consolidator. This success is attributed to its strong market position as a delivery service provider in the German letter and parcel market, as well as its subsidiaries like DHL eCommerce and DHL Global Forwarding.
