Pitney Bowes Inc., a global technology company that provides commerce solutions in the areas of eCommerce, shipping, mailing and data, has recently released its third annual Parcel Shipping Index, which revealed parcel volume in Australia grew eight per cent last year to 841 million parcels, up from 778 million in 2016. In addition, parcel shipping generated AUD $9.2 billion in revenue last year, an increase of 6.2 per cent over 2016.
The annual report, which measures both volume and spend for business-to-business, business-to-consumer, consumer-to-business and consumer consigned shipments, shows Australians receive an average of 34 parcels each year, driven by fast growth in eCommerce sales this past year.
The eCommerce revolution in Australia has contributed significantly to the strength of the parcel shipping market. The seamless experience provided by many online marketplaces has driven consumers’ expectations for convenience, price and availability of products from around the world, made possible through global eCommerce.
The omnipresence of eCommerce has spurred a global boom industry, with parcel shipping generating $279 billion in global revenue last year, increasing 11 per cent from 2016. In the 13 markets reviewed, the Shipping Index expects global shipping volume to surpass 100 billion parcels by the year 2020.
Stephen Darracott, ANZ Country Manager and Director, Pitney Bowes, said, “The parcel shipping market remains strong, with growth across all regions. Global eCommerce giants continue to raise the bar, resetting customer expectations when it comes to shipping.
“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 fulfillment centers. 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.”
Australia’s parcel market is expected to grow to more than one billion parcels a year by 2021. The parcel delivery market is seeing an exponential growth backed by ease of shipping, delivery and tracking parcels domestic and internationally.
“The Australian 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. As the competition heats up, simplified and reliable service, accelerated delivery times, and transparent and accurate tracking will be the key to success,” Darracott concluded.