Australian Franchise News – 11-06-14
Australian couriering and logistics franchise, PACK & SEND, has credited the combination of the online shopping boom and its multi-channel business model for a significant growth in its international shipping business.
Statistics released today by the company reveal international shipping to and from Australia is up more than 39% on the financial year to date. By way of comparison, this contrasts to domestic shipment growth of 14%.
PACK & SEND CEO, Michael Paul, said “International shipping is dramatically increasing as online shopping becomes more accessible and cheaper – in January alone international shipping for PACK & SEND increased 34% year on year.”
The January peak correlates with a spike in online shopping as a result of post- Christmas online retail sales. January 2014 saw growth in online sales of 11.3% over the previous twelve months1, compared to an increase of 6.1% for traditional retail in Australia2,3.
“A key contributing factor to our growth is customer demand for convenience – we’re offering three sales channels via retail service centres, phone and online which no other logistics provider offers.” said Mr Paul.
Overall PACK & SEND shipment data – including both international and domestic freight – revealed a 18% year-to-date increase for 2013/14 and based on estimated industry growth, is expected to continue to rise.
IBISWorld forecasts the $6.9 billion revenue of the courier parcel industry to increase at a compound annual rate of 3.5% to be worth $8.2 billion in 2018-194.
“Online shopping is constantly boosting demand for innovative courier services, challenging businesses in the industry to develop sustainable alternatives to home delivery services and clever product return solutions.
Mr Paul also attributed PACK & SEND’s growth to offering retailers and consumers the option of using its national retail footprint as an alternative delivery point for parcel deliveries. “There is significant demand from customers for retailers to provide more parcel delivery options; missed home parcel deliveries have become the industry’s biggest challenge. “Repeated delivery attempts are a significant cost to the customer, the online retailing sector and courier companies. Our ‘Hold for Collection’ delivery service to any one of our 100+ retail service centres is a popular solution. It gives shoppers more control, convenience and a predictable delivery” said Mr Paul.
1National Australia Bank 2014 NAB Online Retail Sales Index: Indepth Report – January 2014, January
2Australian Bureau Statistics 2013 8501.0 – Retail Trade, Australia, March 2013
3Australian Bureau Statistics 2014 8501.0 – Retail Trade, Australia, March 2014
4IBISWorld 2013 IBISWorld Industry Report I5102: Courier Pick-up and Delivery Services in Australia, November 2013.