“We are in the middle of a rethinking phase, to be the ‘marketplace’ of Spanish companies, which sell more in the digital ecosystem and in much fairer conditions”. Iván Maroto, director of Digital Business and Correos Market, explains to elDiario.es the moment of transformation in which one of the youngest businesses in the Correos group is undergoing. An e-commerce platform looking to achieve profitability in three years.
And the problem was wages? Amazon skyrockets its profits by raising salaries
“The project was born before the pandemic to help producers in rural Spain to take their products to the entire territory. So it was a project very focused on the primary sector in food producers; and in artisans”, he argues. “And it made special sense in the pandemic, because online went from being just another sales channel to being the main channel.”
Now, two years after confinement, that project broadens the focus. “We are in the repositioning phase, we seek to expand the portfolio of companies, to make it larger and more powerful, but always from Spanish companies and where all, whether large or small, have fair conditions,” says Maroto, who joined Correos a early this year.
To achieve this, “the first decision is to eliminate sales commissions for sellers. Other ‘marketplaces’ are devourers, they come to have commissions of between 15% and 18%”, says the person in charge of the project. In this case, there are no commissions for the seller, although the buyer does pay the shipping costs. “We have to be economically sustainable; the ‘core’ of our business is logistics, which is what generates income”.
That is to say, the project does not entail commissions for those who sell in the ‘marketplace’, except if they opt for the option that entails that Correos is in charge of the entire process. “There we do everything, we store, manage the stock and logistics,” he lists.
Only Spanish companies and internationalization
In this way, one of the axes with which Correos Market seeks to differentiate itself from other competitors is the absence of commissions and, also, an offer focused exclusively on Spanish companies.
“The purpose is for it to be a fair marketplace for everyone. Sustainability from the point of view of consumption, because we guarantee that the money, when you buy, goes to a company listed in Spain; and sustainability understood by the ecological impact, because we are talking about local products that generate less footprint”.
And, once the project expands its offer of vendors, which currently exceeds 1,300, it will seek to increase its customer base. “When we have a greater profile of companies, we will go out for the final consumer: ‘buy here because you are going to buy from Spanish companies, with fair and sustainable conditions and the guaranteed minimum online price”.
This minimum price, indicates Iván Maroto, does not mean that it is lower than the one that the companies that are on the platform propose in their own online sales channels. “We are never going to ask for it to be less, but it will not be higher than other ‘marketplaces’ that, on occasion, have conditions that are suffocating for sellers”.
Profitability in 2025
With these wickers, the Correos project expects to speed up its operations in the coming months. Looking ahead to the final stretch of the year or in the early stages of 2023, it plans to start selling outside of Spain, in its first international steps and in certain markets, which it does not reveal. Looking ahead to the next financial year, it plans to increase its operations by between 20% and 30%, which today reach 50,000. And in 2025, multiply these by five, up to 250,000 operations per year. Also that year, it expects to achieve profitability.
In fact, these new businesses – which also include Correos Cargo, an international air transport service – are key for the group controlled by the State through the State Industrial Participation Company (SEPI) to leave behind the losses of the last exercises.
“We have to be profitable and also maintain the essence of the Correos group. We are a public company committed to society, with brand values such as closeness and trust; and we have sustainability as a priority, also financial; and open new businesses like this, which allow the company to be profitable. The whole group is transforming”, indicates the head of Digital Business and Correos Market.
“We can take advantage of the capillarity that Correos has, because in all the offices it will be possible to make purchases and deliveries from the ‘marketplace’. We don’t have to think only of urban Spain, but also of rural Spain. 90 million people a year pass through our offices. Our expectations are very high”, summarizes Maroto.