Product Delivery Or Mail Fulfillment And Maximising Profitability, When Courier Is Cheaper Than PostProduct Delivery Or Mail Fulfillment And Maximising Profitability, When Courier Is Cheaper Than Post

Living in Spain can have its ups and downs. Regular contact with the country you have come from eases the transition. In these days of email communication, ordinary letters are not so vital but some mail, like birthday cards or thank-you letters, is still important.

Then there are those documents you really can´t afford to loose, pension letters, title deeds, credit cards, contracts, educational certificates, hospital reports... the list goes on!

And what about people who make their living from sending things through the post? Thousands of people rely on getting their product to their customer through the postal delivery monopolies. Everybody that lives in Spain knows that the postal service here is less than optimal, to understate the case. However, premium rate courier services are not affordable... or were not until the first discount cheap courier parcel services to and from Spain opened.

eBayers who have moved to Spain can now send their goods back to the UK with companies that send by Courier to the Royal Mail sorting office where they blend seamlessly with UK domestic first class mail. Many of their customers don´t even know that they are not in the UK! eBay feedback awards points for speed of delivery and delivery cost. Many people buying on eBay look at the delivery costs before they even consider bidding and eBay itself recommends free delivery.

In order to understand how this works you need to know that courier companies are preparing for postal liberalisation within the EU so prices have been dropping like a stone. Although published prices from FedEx or UPS seem way above those of the Correos, there are companies which receive huge discounts and so can pass these onto their customers making door-to-door courier cheaper that the postal service for heavier items. A door-to-door service can never deliver a postcard cheaper than the mail (and isn't the point of a postcard that it has the stamp?) but even letters of 50g can now be sent cheaper and more efficiently than through the Spanish postal service and parcels of 1kg can be sent by courier for less than parcel post.

Who benefits from this? Individuals sending presents back to their families - if you buy a fine Manchego cheese to introduce a friend to some of the delights of Spanish cuisine it can cost more to post it home than the cheese cost in the first place! Businesses selling on eBay who want to keep their feedback ratings as high as possible. People sending post and parcels to British Commonwealth countries where Royal Mail arrives in a fraction of the time of the Correos post.

Above all, hundreds of individual businesses in Spain now benefit from going through the alternative route of discounted, cheaper courier parcel services and therefore save money and increase their efficiency. This goes as much for national, within Spain, deliveries as it does for international.

There are thousands of ex-pats with businesses in Spain from Estate Agents, to Flamenco Costumes, Guitars and Vintage Car Parts who all depend of the efficient and reliable transfer of physical goods from one place to another to fulfil their end of the commercial bargain. The sooner they learn how to adopt a competitive distribution strategy the quicker they will be maximising their profitablity and, increasingly, that means looking away from the established Postal Monopolies.
by Edmund Sykes
References and Bibliography
Citibox Cheap Post and Parcels from Spain. Citibox has been providing mail, parcel and courier services to and from Spain since 2001. The discounts received from the major courier companies are passed on to our customers so that clients pay a small proportion of the full cost, often less than half. This has been of immense help to companies, as well as individuals, in Spain. Pensions companies, eBay sellers, and all manner of businesses benefit.
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