DPWN has released a study showing that online shopping is a hit in Germany.
German logistics giant Deutsche Post World Net (DPWN) has produced a study of German online shopping, in collaboration with market institute ComCult Research. The study, based on a representative survey of 1,250 Internet users, suggested that over half now use the Internet to shop regularly.
As the Internet becomes more widely used, and as at least some eBusiness retailers prove themselves to be reliable and reputable companies, people’s fear of buying goods over the net is diminishing. Online products are often cheaper than identical items found on high streets, and the current extensive use of the Internet in the workplace makes online shopping an easy choice.
Third party logistics providers such as DPWN’s Danzas subsidiary can manage the entire supply chain for eBusiness retailers. This might seem to provide a golden opportunity for smaller and medium-sized companies to expand and take on the big boys, since logistics providers can co-ordinate the warehousing and distribution of goods, services that include next day delivery throughout Europe and globally.
However, logistics services from operators with pan-European and global capabilities do not come cheap. This restricts smaller up-and-coming eBusinesses with smaller initial sales volumes. Logistics providers such as Danzas have the knowledge and capability to co-ordinate supply chains for all levels of companies, but smaller companies who rely on sales throughout Europe could be held back due to distribution costs.
The Internet is an amazing tool for companies of all sizes to provide information and sell their products to a global audience. Unfortunately distribution of physical goods is a lot harder and more expensive than distribution of information. Until companies can balance distribution costs and meet the challenge of the last mile, the scales won’t tip towards the SMEs.
