The Rise of the Parcel Delivery Sector

Trading among people all around the world is fundamental to the way we live our lives and where there is trade, there will always be a need for goods and items to be delivered to those who have purchased them.

So, is the parcel delivery sector recession proof and able to remain unaffected by the performance of the global economy?

To answer this question, there are several factors that need to be considered and the first of these is supply and demand.

Supply and Demand

It is clear that the nature of the modern economic model has increased demand for parcel delivery services. One doesn’t have to look much further than the ecommerce sector, where behemoths such as Amazon and eBay have enjoyed incredible growth and success and who conduct the majority of their business using parcel delivery services.

Hardly surprising then, that since the rise of ecommerce, Amazon and eBay were launched in 1994 and 1995 respectively, there has been a flurry of activity in the parcel delivery and logistics sector.

There are now many parcel delivery companies offering premium services. Demand from the market has grown and so of course has supply. The service offered is also much quicker, as companies have embraced technology such as GPS to help them navigate the seemingly ever busy roads and motorways.

This in itself, however, doesn’t answer the question, it only proves that demand for such services continues to grow.

Competition and Innovation

Perhaps the answer to the question lies in how well parcel delivery companies are able to compete and innovate. After all, it makes sense that the companies offering the best service are the ones who will win the most customers.

Moreover, companies who are willing to spend money on developing new ways to meet customer demands or to improve existing services will also have an edge when it comes to competing – many are excited about the prospect of parcel delivery by drone and this is an area that has taken time and money to develop.

So, yes some companies will flounder in the face of increased competition and innovation, but others will thrive and to that affect, the sector will remain strong.

Consumer Trends

Is it possible that consumer trends could see an end to the, or the diminishing of the parcel delivery sector?

This is highly unlikely. The recent trend for sourcing and using local food and materials is an example of how consumer trends change. There are however many items that we as consumers want or need that simply cannot be sourced locally. Not everyone lives close to a computer manufacturing facility for example.

Consumer trends may affect the way parcel delivery services operate, but will not negate our enduring need for them.

The rise of the parcel delivery sector looks to continue, innovate and prosper. And for the question, is the parcel delivery sector recession proof and able to remain unaffected by the performance of the global economy?

The answer, for those companies who provide value, who compete and innovate, is to a large degree, most certainly yes.