Adding Value to Parcel Delivery

Digitally connected consumers, looking for lower prices, greater convenience and a seamless experience when buying, receiving and returning products, are forcing post and parcel companies to rethink traditional parcel delivery.

In our latest research “Adding Value to Parcel Delivery” we identified more than a dozen trends impacting parcel delivery service, an industry that is projected to grow 9 percent annually to more than $343 billion globally by 2020.

As postal organizations around the world continue to face revenue challenges created by dramatically reduced mail volumes, focusing on competitive parcel delivery products, services and supply chains can help close the revenue gap.

Our research shows that firms around the world are scaling up to meet future consumer demand, expanding capacity and modernizing networks. In the next five years, the parcel delivery business will:

• Business to Consumer (B2C) will continue to grow in significance around the world.
• B2C will surpass Business to Business (B2B) in terms of parcel volumes in Asia and in North America.
• B2C will continue to grow revenue at an estimated 6 percent per year in North America, 5 percent per year in Western Europe and nearly 14 percent per year in Asia-Pacific.
• Eighty percent of retailers see a positive and measurable impact on customer satisfaction by offering multiple delivery options to shoppers.
• Seventy-seven percent of retailers aim to increase investment in delivery over the next two years.

Consumers now have many more choices and options for delivery services. Successful postal and parcel companies will focus on the recipient and deliver on consumers’ wish lists:

Delivery control: Consumers are demanding a better last mile service that keeps them in control of how, when and where their parcels are delivered.

Delivery locations: As choices broaden, consumers want new delivery options such as lockers or pickup locations that enable a secure, 24x7 and sometimes anonymous delivery option.

Delivery timing: While there is significant investment in speed, CEP companies should focus on giving consumers a range of delivery times (often at different price points) that provides flexibility.

This study examined the global Courier, Express and Parcel (CEP) market size and growth, including B2B and B2C segments, domestic versus international shipping as well as overnight and on-day, and time definite products segments under 150 pounds or 70 kilograms.

We looked at current and new players in this market, including global integrators, postal organizations, regional, shared economy and crowdsourcing players as well as retailers moving downstream. Sources included public information, paid and proprietary primary and secondary research, internal and external subject matter specialist interviews and extensive market and financial analysis.