Package delivery is the primary way for e-commerce businesses to get their products to your doorstep, and it is done by various shipping companies, with UPS being the main one. Some other notable shipping companies are Amazon’s two-day/same-day shipping and FedEx, which both serve their own purposes.
UPS is preferred for packages being shipped within the United States (that are not ordered through Amazon) as they are much faster and larger than FedEx. FedEx, on the other hand, is perfect for international packages, as they have a farther reach around the world than UPS, which primarily operates within the US.
The Large Players in the Package Delivery World
- China Post
- Yamato Holdings
- YRC Worldwide
- La Poste Group
- Deutsche Post
- Royal Mail
- SG Holdings
- Japan Post Group
Package Delivery: Fast Facts About the Industry
- Package delivery made up 5% of the total postal volume in 2020 and has skyrocketed to 70% during the pandemic.
- Only 21% of consumers are willing to forgive late packages as the pandemic has begun to wear off. Most consumers are no longer accepting shipping delays from the pandemic to be a reasonable excuse for late packages.
- 68% of online shoppers do not make purchases from companies if they do not offer free home delivery.
- Most consumers expect companies to offer a return policy that is easy to use, and 79% of consumers expect free shipping to return products.
- Revenue has continued to increase in the global carrier business, even with Covid-19 slowing things down with restrictions.
- 56% of shoppers expect same-day delivery on their packages, mainly amongst shoppers aged 18-34.
- 61% of consumers are willing to pay extra to have their packages delivered on the same day instead of waiting two days to have their product delivered.
Fast Shipping is Highly Important to Consumers
When it comes to package delivery, fast delivery and good return policies are some of the most important things to consumers. 41% of consumers consider fast delivery, including same-day delivery, as the most important thing they consider when placing an online order. 46% considered reliability the main aspect of a shipping company when ordering online.
31% of consumers ranked good return policies as their highest consideration when shopping online, showing why companies should invest in good return policies to bring in customers. This is why most people choose Amazon for their online shopping needs, as Amazon’s return policy is incredibly easy to use.
Shipping Volume Continues to Increase
With Covid-19 causing people to stay home more often and send more businesses online, package delivery services have noted a huge spike in shipping volume. To deal with the increase in shipping volume, UPS is increasing its total storage space by 2 million sq feet around the country to prevent disruptions to the postal service, as they are set to exceed capacity by 5 million pieces a day.
It is still uncertain if shipping needs will continue to rise or will finally begin to slow down as Covid-19 has stopped causing massive disruptions to every aspect of life. Even if it does slow down, the peak season for shipping companies has already started sooner than in previous years.
Technology is Playing A Huge Role
Technology has played a large role in 2022 for package delivery companies. As shipping needs continue to grow, so does the need for new technology to help keep shipping companies from becoming too swamped with packages. This includes software and algorithms being used to create the most efficient routes and workflow, drone delivery, and even AI in some cases.
Delivery Notifications are Being Used More Often
When it comes to being notified about your delivery, shipping companies use email, push notifications, and SMS texts. 1 in 3 people regularly use their email address, making it effective for notifications, but it normally takes 6.5 hours before an email is opened and read.
Push notifications are sent out when the package has shipped and been delivered, making it an easy and quick way for shipping companies to alert consumers about their packages. Finally, 90% of SMS texts are read fairly quickly, but they can be extremely inefficient as they can be lost or ineffective if sent out at the wrong time.