Companies in this industry collect, transport, and deliver mail and small parcels. Major companies include the US Postal Service (USPS), Deutsche Post DHL (Germany), La Poste (France), and Japan Post.
The global postal industry generates annual revenue of about $450 billion, according to International Post Corporation. Major markets include the US, France, Germany, and Italy. High-growth markets include Canada, India, Portugal, and Singapore.
The US Postal Service includes about 35,000 post offices with combined annual revenue of about $70 billion.
Providers of express delivery services are covered in a separate industry profile.
Demand depends on transaction volume and corporate spending on direct marketing. The profitability of individual companies depends on the efficiency of their operations. Large companies have advantages in widespread infrastructure and diversity of services. Small companies compete by specializing.
Government-owned postal agencies typically have a monopoly on mail delivery, but face heavy competition from private package delivery companies. The competing entities can form partnerships to capitalize on each other's strengths; for instance major express delivery companies Federal Express (FedEx) and United Parcel Service (UPS) contract certain residential deliveries to the US Postal Service (USPS), while the USPS contracts air transportation out to FedEx and UPS. In countries where mail delivery has undergone privatization, former postal monopolies are better able to compete in ancillary fields such as logistics and freight services.
All types of mail and parcel delivery providers experience increasing competition from email and secure document transmission providers.
Products, Operations & Technology
Major sources of revenue for the US Postal Service (USPS) include first-class mail (about 35%), shipping and package services (30%), and standard/advertising
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms