Last year Australians received an average of 34 parcels each, with growth in volume and revenue driven by strong ecommerce sales.

According to The Pitney Bowes Parcel Shipping Index released today, parcel shipping generated AU$9.2 billion in revenue last year, an increase of 6.2 per cent over 2016. While parcel volume in Australia grew eight per cent last year to 841 million parcels, up from 778 million the year before.

That’s the equivalent to 34 parcels per person, a 6.4 per cent increase year-on-year. Australia’s annual parcel volume is expected to grow to more than 1 billion parcels by 2021.

The third annual report examines the volume and spend across B2B, B2C, C2B (returns) and C2C parcels in 13 markets around the world.

“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,” Stephen Darracott, ANZ Country Manager and Director, Pitney Bowes.

Global Outlook

Across the 13 global markets included in the Index, parcel shipping revenue grew from $250 billion in 2016 to $279 billion last year, increasing 11 per cent from 2016.

Parcel volume grew from 64 billion to 74 billion in 2017, a 17 per cent increase. That figure is predicted to grow to surpass 100 billion parcels by the year 2020.

Key take outs

  • China’s parcel volume is triple the US. China (40.1 billion), the United States (11.9 billion), and Japan (9.6 billion) represented the top three countries for parcel shipping volume in 2017. China’s parcel shipments represent 53 per cent of the total shipments in the Pitney Bowes Parcel Shipping Index.
  • Shipping revenue is highest in the US at $107 billion, followed by China ($73 billion) and Japan ($25 billion). The average shipping price of a parcel is US$8.95 in the US, compared to US$1.83 in China and US$2.64 in Japan. In Australia average parcel cost is around US$7.98 (AU$10.90).
  • China’s Parcel Growth Continued to Soar: Despite slower parcel volume growth from the previous four years, China represents the largest market in parcel volume growth at 28 percent YOY. India (11 percent) and Sweden (9 percent) followed.
  • Japanese residents receive the most packages: Japan tops per capita shipping with 76 parcels shipped per person in 2017. The UK follows at 48 parcels shipped per person, and then Germany at 41 parcels.

The report tracks carriers such as FedEx, UPS, Australia Post and Toll, retailer owned delivery networks such as Amazon Logistics, and startups and crowdshippers such as Sendle, Deliv, and Sherpa.

“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,” Darracott said.

“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.”

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