Post & Parcel: E-Commerce Sustained Growth in 2021, Says IPC
As the world enters the post-pandemic era, the postal industry has shown strong growth with revenues increasing by 3.8% on average in 2021 up from 1.4% in 2020. This is driven by strong demand for B2C e-commerce logistics as more consumers continue to shop online. Holger Winklbauer, CEO of International Post Corporation (IPC), commented on the results: “The 2021 results show the resilience of the postal sector and its capacity to build on the e-commerce surge. However, cost pressure in the parcel delivery market remains high, in part due to rising fuel prices and labor shortages.”
Some posts now report that parcels account for more than half of their total revenue. To meet this growing e-commerce volume and improve delivery times, postal firms have been investing in sorting capacity enhancements and automation capabilities. Additionally, competition remains very strong in the dynamic B2C parcel market. Delivery companies continue to increase their competitive advantage with new contracts, as well as investments in logistics network upgrades. New players in the industry explore ways to grow their share in the last-mile delivery market.
Meanwhile, in the mail segment, e-substitution remains the key driver of the structural decline in traditional letter volumes since the pandemic. However, a partial recovery in the mail industry can be observed due to the easing of Covid-19 restrictions and the election period. Nonetheless, the post industry is set to restructure in order to meet the ever-evolving needs of consumers through providing fast, reliable, convenient, and competitively priced delivery services.
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