Monday , January 25 2021

Croatian Post will ship Amazon goods to others in the region – from Slovenia to Cyprus?

By 2020, Croatian mail turnover grew by an average of 15 to 20 percent per year, and jumped by 30 percent due to the epidemic.


Photo: Depositphotos, wolterke

Photo: Depositphotos, wolterke

Similar trends are recorded by other public postal services in the European Union countries.

Although in the previous period it seemed that domestic post offices, including Croatian Post (HP), had become somewhat archaic organizations of a more social than market nature, on the one hand they looked after a large number of employees while maintaining unprofitable post offices in rural areas. countries and islands where a postal clerk can easily list all users and services – technology has actually saved such companies under bizarre circumstances, writes Poslovni dnevnik.

Namely, at the beginning of the first decade of the 21st century, as a result of liberalization, most postal services lost their importance, because the parcel delivery market, which consisted mainly of letter delivery, appeared new, innovative and well-organized smaller companies, some of which went to domestic market. or global framework. But then, in the late 2000s, the online store suddenly came to life, first in the US and Western Europe, and more and more customers started ordering goods online, which inherently means the supply chain.

While there have been trials, and some companies still do, in order to have orders, sales and delivery on their own, most of them have chosen to only go about ordering and selling or even just selling, leaving delivery to professionals. Amazon is certainly a pioneer in this segment, and today it will become a store with one million employees and an annual turnover of $ 280 billion.

Post offices divide the activities

While Amazon also has its own brands and services for sale, it offers around five million different stores through them. Although there are many other courier companies in the global market such as DHL, FedEx, UPS, GLS, DPD, and recently there are platforms such as Uber, Wolt, Glovo and others, in this situation domestic mail has regained its importance. While nearly all such post offices, including HP, have segregated their lucrative parcel delivery business from those in the PSM domain, the fact remains that with their size, venture capital, organization and usually facilities, they can be a reliable partner for big players such as Amazon.

This is evidenced by the Croatian Post, which officially became Amazon’s partner in this part of the world about 10 days ago. Nobody wants to talk about the details, the Croatian Post itself is bound by strict confidentiality agreements, and Amazon simply has such a shutdown policy, motivated by accusations of labor exploitation in the US and Europe.

But the fact is that from this month onwards, packages ordered by Amazon, and not just from Amazon, are processed at HP’s new variety center in Velika Gorica and delivered to customers from there. It is speculated that the Post Office’s new logistics center was the main magnet for Amazon’s entry into HP. The sorting facility opened last September and it is believed that the entire project was accelerated in six months because of Amazon’s interest. The total value of the entire project is approximately EUR 46 million, the complex employs over 1,500 employees – sorting, postal logistics, parcel logistics, transport and rolling stock, IT and data center, business support.

Amazon Founder: Jeff Bezos, Photo: EPA, ALESSANDRO DI MARCO

Amazon Founder: Jeff Bezos, Photo: EPA, ALESSANDRO DI MARCO

The high bay warehouse can accommodate 8,000 package places and has a total capacity of 6,400 tons. The capacity of the automatic parcel processing machine is 15,000 parcels per hour, the weight of the parcel ranges from 100 grams to 30 kilograms. In short, it is the largest investment in HP’s history and the complex has also become a new headquarters, so in the future, mail will be delivered from Veliki Gorica to all other parts of Croatia.

Connection to the railroad

In addition, although the official details are secret, the Poslovni dnevnik portal has learned that this HP distribution center will become Amazon’s supply center for a wider region – unofficially, there is talk of Bosnia and Herzegovina, Serbia, Montenegro, but also North Macedonia and Albania. and some sources say that this project is even about extending Croatian postal services to Slovenia, Greece and Cyprus.

Although Croats have been buying goods online for a long time, the real expansion took place with the country’s accession to the European Union, which meant that there were no longer any customs procedures and additional fees on the purchased goods. HP says it has experienced consistent double-digit sales growth in the package delivery segment since 2013. The online shopping landscape has further exploded this year with the advent of the kovida-19 pandemic, which has brought great problems to the entire global economy, but courier companies and online stores have seen significant growth.

For example, Amazon employed approximately 650,000 employees in the middle of last year, and over a million a year later. HP notes that until this year they grew by an average of 15 to 20% per year lokdaunom their turnover increased by 30% compared to the same period last year. Many other public postal services in the European Union follow similar trends, such as HP.

Interestingly, the business model for restoring public postal services in the EU is increasingly used by traditional, more or less publicly owned railway companies. Namely, in the EU’s Green Agenda, where the EU has occupied an important place for 10 years and will be even more in the coming period, more and more countries are joining projects heavily subsidized by European funds, such as the renewal of railway infrastructure and rolling stock. such traffic is better for the environment than road transport. Croatia is also on this track.

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