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Friday, 11/07/2025, 13:09 (GMT +7)
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E-commerce parcels to boost global postal revenue by 2.1%
Growth from e-commerce parcels has helped global postal revenue grow by 2.1% in 2024, offsetting a decline in traditional letters.
Global postal revenue is set to grow by an average of 2.1% in 2024, driven by strong growth in parcel delivery, according to preliminary results released by the Universal Postal Union (IPC) on Thursday.
"Posts’ efforts to increase efficiency while at the same time capture e-commerce growth, paid off. The overall economic uncertainty continues, however, to put pressure on posts who must continue to pursue transformation," Holger Winkbauer, CEO of IPC, said in a press release.
The report covers postal operators in 49 countries.
While global letter volumes are falling, reflecting continued digital displacement, parcel volumes are recovering, driven by online shopping and cross-border e-commerce flows. Postal operators are expanding e-commerce services to capture this trend. In Asia-Pacific, a growing middle class and urbanisation are driving demand for parcels.
Regulatory obligations such as universal service requirements and certain price caps continue to limit pricing flexibility, particularly for traditional mail networks and in rural areas, the IPC report says.
Despite wage and fuel price pressures, parcel unit prices remain under competitive pressure. The postal industry is responding to the difficult operating environment by optimizing its network, diversifying into areas such as financial services and logistics, and investing in automation and digital platforms to increase efficiency and improve service.
Managing costs and maintaining growth in the parcel business are key to maintaining the financial viability of postal agencies, the IPC said.
The United States Postal Service (USPS), for example, is implementing a restructuring plan called “Delivering for America,” which includes streamlining its ground, air, and distribution centers. But the Office of Inspector General found earlier this year that the agency has less flexibility to address financial shortfalls than postal systems in other countries.
In 2023, postal operators saw an overall revenue increase of 1.5%.
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