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A courier service is a service that allows someone to send a parcel or consignment from one location to another. They can be booked and paid for online. Senders have the option to have their parcels collected by a courier or drop their parcel off at a nearby location to be picked up later by the courier.
Courier services are known for their superior speed and tracking capabilities when compared with national mailing services. Courier services are particularly useful for people that sell products online and need a shipping solution for sending multiple parcels. This can range from online marketplace sellers, such as eBay, Etsy and Amazon, to established national and international online businesses. Many large-scale ecommerce businesses will arrange to have a dedicated courier for their deliveries. By arranging a contract with a courier, businesses can get bulk discounts.
The global courier service market is expected to reach USD 464376 million by 2025, growing at a CAGR of about 6.48% from 299143 million in 2018; The courier service market is very concentrated market; key players include UPS, FedEx, DHL, China Post, Japan Post Group, Royal Mail, SF Express, Poste Italiane, YTO Expess, ZTO Express, STO Express, Yunda Express, Aramex the revenue of top ten manufacturers accounts more than 80% of the total revenue in 2018. The high-end products mainly come from USA, Germany, Japan, China.
The North America ranks highest in courier service revenue at $101.87 billion, generating 34% of the total revenue in global. China ($77.53 billion) and Japan ($23.45 billion) follow in second and third place. The average shipping price of a parcel is $8.95 in the US, compared to $1.83 in China and $2.64 in Japan.
Market growth will also be driven by the continued outsourcing of supply chain activity to third-party logistics providers. This includes increase in the scope of contracts when they are renewed. However, a key factor which will offset the impact of this on market growth is the efficiency savings made by logistics providers which are passed back to clients. Further consolidation is expected as logistics providers seek to add new service capabilities and geographical scope to enable them to support global clients and hence, build their position in the competitive global market.
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