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Over one billion parcels sent in Australia annually by 2021

By 2021, more than a billion parcels will be sent in Australia per year, according to the second annual Parcel Shipping Index from global technology company Pitney Bowes. The Index measures volume and spend for business-to-business (B2B), business-to-consumer (B2C), consumer-to-business and consumer consigned shipments in 13 major markets including Australia, Germany, China, the UK and the US.
This year’s Index projects that the Australian parcel market will grow 9 to 12 per cent from 2017 to 2021 (CAGR), with more than a billion parcels sent per year in Australia by 2021.
It also shows that Australia experienced double-digit growth in parcel volume from 2015 to 2016, year on year, increasing by 13 per cent to 794 million.
The Index found that parcel spend in Australia grew by four per cent to reach $9 billion in 2016 – but while parcel volume and spend are rising, start-ups are disrupting the parcel market, increasing competition and driving down revenue per parcel – with an eight per cent yield per parcel drop attributed to the entrance of more non-traditional carriers into the market.
“The Australian parcel landscape is in the midst of great growth and disruption,” said Stephen Darracott, Country Manager and Director, Pitney Bowes ANZ. “We anticipate even more parcel volume growth with the e-commerce revolution taking hold in Australia. Individuals will have more choice about delivery times and service options over the next year. Meanwhile, businesses should be undergoing a digital transformation of their mailing and shipping workflow to focus on more efficiency and inbound and outbound tracking capabilities.”
On average, the other 12 major markets studied have grown 4.3 per cent annually since 2012 and are projected to grow 4.5 per cent to 5.4 per cent annually through 2021.
“The continued rise of e-commerce globally is keeping the parcel shipping market strong through 2021 as consumers are increasingly looking to online shopping for convenience, price and availability of products from around the world,” said Lila Snyder, Executive Vice President and President – Global E-commerce, Pitney Bowes. “As consumer expectations continue to rise, shipping technology and service providers will need to help retailers and marketplaces meet those demands.”
Globally, the Parcel Shipping Index predicted rapid growth and last-mile delivery challenges will drive innovation across markets, and the rise of parcel lockers and new delivery models like crowd-shipping, on-demand delivery services, evening and weekend delivery and drones.

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