Mail revenue falls behind non-mail revenue for postal agencies, more ecommerce plans needed - study

Mail volume keeps on a decreasing trend, falling from 78.5 billion pieces, or 21% since 2007, the study in question points out. As a result of this trend, mail companies should embrace ecommerce opportunities and diversify their products and services to increase business. The need for digital and mobile channels, the diversification of services and parcel growth are the three dominant trends in the industry, according to “Accenture Research and Insights 2014.”

The research indicates that non-mail revenue, including parcels, which accounts for 52% of postal organizations total revenues, brings more revenues than mail. Mail is still a salient part of the business, but most postal organizations are turning their businesses into hybrid organizations with a diversified portfolio of products and services -- parcels, logistics, banking, insurance, ecommerce and digital activities.

The top five postal organizations, Singapore Post, Australia Post, Poste Italiane, bpost (Belgium) and Austrian Post Group, summed up more than 3% revenue growth over the past 5 years by diversifying products and services, according to the same research findings.

Parcel revenues jumped by 4.8% between 2011 and 2012, slightly faster than volume growth and continue to benefit from the growth in ecommerce, typically growing in double digits in most countries. India Post realized a 42% parcel volume growth and Singapore Post has become an active player in the region through recent acquisitions of Quantium Solutions, Famous Holdings and Indo Trans Logistics Corp.

Digital channels are salient for ecommerce business and postal agencies are developing digital solutions that enable payment, provide access to small business and give consumers control over the delivery of their online purchases.