Imagine you found a nice second-hand television online, but the seller lives in Groningen and you live in Rotterdam. Driving back and forth is not easy for everyone, but transferring money in advance and waiting to get your product delivered perhaps does not feel good either. How do you really know if someone does as he or she promised? And whether the product meets the expectations? This is where Pakkie comes in: a safe transaction platform arranging both payment and shipping.
The startup, launched one month ago (January ’18), combines payment via a third-party account (Pay.nl) and sending from one of the 5,500 connected parcel points of PostNL, DHL and DPD. This way, you can safely buy second-hand items via Facebook Marketplace or ‘Marktplaats.nl’, because the money is only transferred from the third-party account once the package has arrived at the recipient. As both payment and shipment are arranged via one party, there is control over every step of the transaction. Hence, Pakkie makes selling and buying online much easier (Pakkie, 2018).
How does it work?
Within a transaction, there are always two parties involved: a seller and a receiver. The transaction works differently for both. When a seller has made a deal online, the other party can pay via Pakkie. At this moment the seller will receive a shipping label. Afterwards, the seller can drop his or her package at PostNL, DHL or DPD and once the package is delivered the seller will receive his or her money. The shipment can be followed via the Pakkie app. On the other hand, Pakkie keeps the receiver informed about the shipping process and after the package is received, the seller gets paid (Pakkie, 2018).
Sending a large package (larger than standard letter post) with Pakkie costs 6,95 euros and you have to pay 4,25 euros for a small-volume order (standard letter post, shipped in an envelope). Sending a Pakkie costs as much as sending a package from a store, without additional service costs (Pakkie, 2018).
Pakkie fulfils several efficiency criteria. Sellers can safely sell their goods online via Pakkie, without having to pay additional costs. Moreover, buyers can buy everything they like online in a safe manner. This way Pakkie removes the distrust of buyers and sellers and encourages people to buy and sell more second-hand instead of new products. In addition, Pakkie makes online trading easier, because it takes less time and effort to sell and buy second-hand products. Parcel deliverers could also benefit from Pakkie. With every distance of more than 30 kilometers, it is cheaper and more sustainable to send the purchase instead of picking it up yourself. On the other hand, users provide value for Pakkie as well by creating a bigger user base. Besides, Pakkie works with a commission business model: they charge a commission from each transaction. For every parcel that is traded via the service, the startup receives a fixed amount from the relevant parcel delivery service. This commission is below 1,00 euro per product sent, hence it is very important for Pakkie that more people will use this service. Furthermore, users are an essential part of Pakkie’s business model because without users the company would not even exist. This is the principle of value co-creation, where value is created in a multi directional way (Saarijärvi et al., 2013). Thus, the joint profitability criteria are met as both company (Pakkie) and users can benefit from the app (Carson et al., 1999).
Pakkie is feasible and takes care of several institutional arrangements. The company is fair, since it stimulates people to treat others the way they want to be treated as well. In addition, the platform takes care of several concerns regarding security, fraud and scams, which no other marketplace platform has succeeded to do. Finally, the platform is transparent in a way that users can see where their parcel is and have full control in the transaction.
Pakkie offers a solution to many people who want to buy and sell second-hand items online, but are reluctant towards the transaction process. The platform could lead to a more sustainable world with more second-hand trading. However, in a world where globalization is becoming increasingly important, especially within the European market, Pakkie should also start focusing on expanding abroad. Only if Pakkie gains enough users, the platform could expand all over the world.
Carson, S. J., Devinney, T. M., Dowling, G. R., & John, G. (1999). Understanding institutional designs within marketing value systems. Journal of Marketing, 115-130.
Pakkie. (2018). Retrieved from https://pakkie.nu
Saarijärvi, H., Kannan, P. K., & Kuusela, H. (2013). Value co-creation: theoretical approaches and practical implications. European Business Review, 25(1), 6-19.