Growing Revenue In Parcels Resulted To Stiffer Competition
In the recent update made by Of com regarding the parcels market in the United Kingdom, the sector is growing steadily but the average revenue for every unit is starting to go down because of the stiff competition among different carriers. This is the very reason why courier quote is starting to lower in order to stay in the business.
Report published by Ofcom revealed that between 2015 and 2016, £3.39 is the average revenue for every unit of a domestic parcel. For the period between 2016 and 2017, the average revenue for every domestic parcel went down to £3.21 which means that the number decreased by 5 per cent. This is the second year in a row when the average revenue per unit of parcel has decreased. This is also a contributing factor why many of the parcel carriers are competing against each other when it comes to prices.
In the case of parcels intended for international shipping, the average revenue for every unit has go down by 1 per cent. Between 2015 and 2016, the number is £11.77 while the number for the period of 2016 to 2017 declined to £11.62.
In a recent event conducted by Triangle Management Services 2017, the stiff competitions between carriers have caused the price to suffer as a result.
According to the director of research and consultancy of the company, Saeed Mumtaz, the survey conducted by Ofcom was only a proof that the market prices have really changed and it is also evident that the trend they expected was correct.
In the UK, competition remains to be high thus, the unit prices of both domestic and international parcels are suffering. The market is now coming to a slow growth and everyone is seeing the effect of Brexit. One can only predict as to what will happen to the parcel market in the future. The industry might make some changes in order to compensate for the low courier quote such as providing a better service, searching for new services to offer or look for a new venture partnership.
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