July 21, 2014 (RARC-WP-14-015)

The package delivery market has been growing considerably. Between 2008 and 2013, the U.S. Postal Service experienced a more than 20 percent increase in package volume. The main reason is the growing popularity of e-commerce, particularly online shopping. American businesses and consumers spent more than $68 billion to ship packages domestically in 2013. E-commerce sales in the U.S. alone this year will top $430 billion; global e-commerce will exceed $1.5 trillion.

There is no doubt that packages are growing in importance to the Postal Service’s future. To meet emerging customer demands, the Postal Service needs to position itself for long-term success and broaden its role across the package delivery value chain. The Postal Service has already taken some steps towards enhancing its ability to handle an increase in packages. However, it needs a strategy that includes expanding beyond the traditional postal expertise of last-mile delivery to offer one-stop, end-to-end solutions.

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