News

Changes in postal market afoot, claims new report

05 September 2017

The UK parcels market is due for ‘a huge shake up’ thanks to new technology, according to the new Pitney Bowes Parcel Shipping Index 2017, published this week.

Pitney Bowes said that this follows on from last year’s increase in parcel deliveries by 12% to 2.5 billion. Spending increased by 8% to £10bn.

“Market growth will give rise to new delivery models like crowd-shipping, on-demand delivery services, evening and weekend delivery and drones,” commented Pitney Bowes, “as companies focus on improving the customer shipping experience by shortening delivery times, lowering delivery costs and adding consumer choice.”

The Index also found that global parcel volumes increased by 48% the last two years, from 44 billion parcels in 2014 to 65bn in 2016. In addition, the Parcel Shipping Index forecasts a 20% increase in parcel volume every year from 2017-2021.

Commenting on the UK findings, Ryan Higginson, VP & UK Country Leader at Pitney Bowes, said: “As the UK sees a surge in parcel deliveries, consumers can expect a huge shake-up in last-mile delivery services. If parcel volumes continue to grow at this year’s rate, we could be sending 3.9 billion parcels by 2021.

“We are expecting to see companies meet growing demand with new delivery models, like crowd-shipping, on-demand delivery services, evening and weekend delivery and drones. All of this will help to shorten delivery times, lower delivery costs and increase consumer choice and flexibility.”

Focusing on the UK market, the Index found that Click & Collect has been growing in popularity and is expected to account for 35% of all physical deliveries by 2018.

More on this in the next issue of The SubPostmaster.