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Demand and Regulation for e-Commerce in Goods

In: The Future of the Postal Sector in a Digital World

Author

Listed:
  • Heikki Nikali

    (Posti Ltd.)

  • Juri Mattila

    (The Research Institute of the Finnish Economy (ETLA))

  • Ilona Rintanen

    (Posti Ltd.)

  • Ville Huuhtanen

    (Posti Ltd.)

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.

Suggested Citation

  • Heikki Nikali & Juri Mattila & Ilona Rintanen & Ville Huuhtanen, 2016. "Demand and Regulation for e-Commerce in Goods," Topics in Regulatory Economics and Policy, in: Michael Crew & Timothy J. Brennan (ed.), The Future of the Postal Sector in a Digital World, pages 247-260, Springer.
    • Handle: RePEc:spr:topchp:978-3-319-24454-9_16
    DOI: 10.1007/978-3-319-24454-9_16
    as

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