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2nd biggest UK courier – Amazon Logistics

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Pitney Bowes have announced data on UK carrier market share as an update to its latest Parcel Shipping Index, in which Amazon Logistics is now revealed to be the 2nd biggest UK courier .

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The updated Index now charts parcel volumes, revenue and market share by carrier for the UK, as well as for 12 other major markets. It reveals that, as a highly consolidated market, the top five carriers in the UK account for 75% of UK parcel shipments by volume. These are Royal Mail (35%), Amazon Logistics (15%), Hermes (10%), UPS (8%) and DHL (7%) Amazon Logistics generated significant growth of 72% compound annual growth rate (CAGR) in volume from 2013-19 and 80% CAGR in revenue growth during the same timeframe.

The Pitney Bowes Parcel Shipping Index measures parcel volume and spend for business-to-business, business-to-consumer, consumer-to-business and consumer consigned shipments with weight up to 31.5kg (70 pounds) across Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Norway, Sweden, the United Kingdom and the United States. Population data points were sourced from the International Monetary Fund, World Economic Outlook Database published in October 2018. The Pitney Bowes Parcel Shipping Index spans 13 countries and represents the parcel shipping activity of 3.7 billion people.

To become the 2nd biggest UK courier represents massive growth for Amazon, just three years ago they were the fourth biggest UK courier with a 7% market share so to have grown to be 2nd biggest UK courier with a 15% market share is explosive growth.

Also telling is that in the past three years, Royal Mail have remained by far the dominant courier, but according to the Pitney Bowes Parcel Shipping Index their market share has slipped from 47% to 35%. This is a significant drop in market share, but (as is also true for Amazon) this is against a back drop of a fast growing market as we all send and receive ever more parcels. Royal Mail’s volumes may have grown but Amazon’s have grown faster.

Pitney Bowes also found that the UK B2C ecommerce market is estimated to be the third largest in the world after China and the US respectively. 2021 could see carriers experience an increase in domestic shipments, while cross-border shipments could temporarily slow. Their BOXpoll™ data finds that one in four French and German online consumers currently plan to either stop purchasing or purchase less often from UK brands now that the UK is post-Brexit.

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