The South African express parcel industry is feeling the pressure as the South African Post Office (Sapo) renews its focus on e-commerce after promising to clear its massive backlog by the end of this month. But with customers burnt by so many unmet post office promises, is this a viable threat? A MyBroadband.com snap survey among several of South Africa’s leading online retail stores – including Superbalist, Takealot, Makro and Wootware – all said they did not currently use the post office for express parcel deliveries, and nor did they plan to do so in the future. A smaller, niche online retailer based in the Western Cape – selling bespoke décor, clothing and accessories – told FTW on condition of anonymity that she wanted to use the post office as an option as it would be cheaper. “The cost of express parcel delivery adds considerably to the cost of my products but I also can’t take a chance that my parcel doesn’t get delivered. It would mean customers lose trust in my service,” she said. Her sentiment is echoed by a Wootware spokesperson who said cost savings were often outweighed by the negatives – “accountability, service and delivery times”. However, while local e-commerce retailers may be aware of the current SA Post Office realities, international ones are not. Sapo CEO Mark Barnes himself has blamed the massive backlog on international mail, pointing to a 400% rise in internet-based international mail as local consumers increasingly turn to cheaper online imports. According to him, domestic mail parcels are already back to the “no later than five-day delivery standard”. “We started off in April with a 46-million item backlog and we are now down to 7.8 million, mostly international mail which we are hoping to have cleared by month-end,” said Barnes. But business is sceptical about this promise with CEO of the South African Express Parcel Association (Saepa), Garry Marshall, saying it was “unimaginable” what might happen to the time-sensitive, important and high-value parcels should they become part of this current post office backlog. “In contrast, our up-todate and high-tech express parcel industry, with its timeguaranteed deliveries, moves express parcels routinely, same day, overnight and next day and has zero backlog,” said Marshall, noting that this was why the express parcel industry was the fastestgrowing segment of the transport sector. “Yet we are constantly under attack from the postal authorities who covet our volumes. One can only shudder at the thought of the economic carnage that would ensue should these time-sensitive, important, secure and valuable parcels be consigned to the backlog,” he commented. Barnes on the other hand is pulling out all the stops to address the international backlog. This includes working with the Universal Postal Union (UPU) and the World Customs Organisation (WCO) to put “procedures and systems in place” to cut red tape and ease the flow of parcels across borders. “We are also working with international tax authorities on a pre-clearing and predeclaration process,” he added. Furthermore, some international mail – which previously only entered South Africa via OR Tambo International Airport – has been re-directed to Durban and Cape Town where international sorting centres have been established.
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We started off in April with a 46- million item backlog and we are now down to 7.8 million. – Mark Barnes
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