Amazon Vs Correos: How logistic are changing in Spain

Amazon is known worldwide for the speed and efficiency of its deliveries. Since it started selling books online, it has been adding divisions to its business and has experienced tremendous growth. In 2019 it is one of the most valuable brands along with apple and google. This great economic power has allowed it to make large investments in maximizing the efficiency of its logistics network. Currently it is possible to buy thousands of products from their website and receive them in less than 24 hours at home, but amazon does not make any of these deliveries personally, they always subcontract this part of the service to companies specializing in deliveries such as Seur, Correos, MRW.

Correos is a public company that was born in Spain in 1716 dedicated according to themselves to “being a provider of physical, digital and parcel communications”. This company, unlike amazon is a company dedicated exclusively to logistics. Correos has not been able to integrate new technologies as quickly as amazon and we can see how little by little is including new features.

I would like to give you two examples of how such different companies try to innovate in order to become as competitive as possible.

Amazon Lockers Vs Citypaq

Amazon Locker

This solution has been implemented by both companies. It consists of lockers to which the customer can send their packages and pick them up during 24 hours (depending on the location of the lockers). This shipping method allows both companies to reduce their logistics costs since it is the customer who moves to the collection point, consolidating many deliveries in one.

Citypaq

Both amazon and Correos, offer discounts on shipping costs and faster delivery if we choose this option. In Valencia, amazon lockers are located in repsol and GALP stations and in shopping malls such as CC el Saler or Gran turia. Citypaq are located in repsol and GALP, also in many supermarkets as Consum, Vidal or El Corte inglés, also there is one in UPV.

Correos Market, The “Amazon” of Correos

Correos has launched an online sales channel called “Correos Market”. In this Marketplace, Correos wants to sell local products, made in Spain.

Through this channel, Correos will sell products of food, drink, textiles and handicrafts of Spanish producers. In other words, Correos will be the intermediary between suppliers and customers. With this proposal, Correos wants to attack a new market taking advantage of its extensive logistics network. Correos Market will charge a commission to suppliers for each product they sell on their website. Customers will be offered free shipping costs, the possibility of consolidating different shipments and a delivery within 24-72h.

The great advantage for Correos is that it will offer a new service without any added cost to those it already has. That is to say, mail will only be an intermediary between supplier and customer, the storage of the products will be done by the supplier, the supplier will make the shipment as any shipment managed by mail and the customer will receive your order as any order managed by mail. We will see how many suppliers are able to attract mail and how this new service works

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