With global e-commerce giants raising the bar, consumer expectations getting higher, and retailers looking to cross-border commerce to drive growth, investing in logistics and fulfilment is key.
New research has revealed that parcel volume in Australia grew eight percent last year to 841 million parcels, up from 778 million in 2016. The Pitney Bowes Parcel Shipping Index, released today, reports that parcel shipping generated AUD $9.2 billion in revenue last year, an increase of 6.2 percent compared to 2016.
The report shows that Aussies receive an average of 34 parcels each year (an increase of 6.4 percent year on year) and that e-commerce growth in the last year has led to the increase in parcel shipping and volume.
“The parcel shipping market remains strong, with growth across all regions. Global e-commerce giants continue to raise the bar, resetting customer expectations when it comes to shipping,” said Stephen Darracott, ANZ Country Manager and Director, Pitney Bowes. “As retailers and marketplaces look to cross-border commerce to drive growth, carriers must create efficient, seamless routes to market. They’re doing this by turning to technology, investing in commerce platforms, logistics hubs and fulfilment centres. Over the next year, we expect businesses will be undergoing a digital transformation of their mailing and shipping workflow, improving their efficiency and inbound and outbound tracking capabilities.”
It is expected that Australia’s parcel market will grow to more than 1 billion parcels a year by 2021, with global shipping volume to surpass 100 billion parcels by the year 2020, according to the Index.
“The Australiana and New Zealand market is gearing for an exponential growth as we’re also seeing more and more ecommerce companies looking to the shipping industry with a value proposition,” said Darracott. “As the competition heats up, simplified and reliable service, accelerated delivery times, and transparent and accurate tracking will be the key to success.”
The top three countries for parcel shipping volume in 2017 were China (40.1 billion) followed by the US (11.9 billion) and Japan (9.6 billion). The US ranks number one for parcel shipping revenue ($107 billion) with Japanese residents topping per capita shipping (76 parcels per person).
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