When it comes to the shipping business, the phrase “slow and steady wins the race” couldn’t be more wrong (obviously). The fact of the matter is, all of the major carriers compete with each other all the time. However, in this particular race to capture market share, USPS is pulling ahead! According to the Postal Regulatory commission, USPS market share has steadily increased over main competitors UPS (NYSE:UPS) and FedEx (NYSE: FDX) since 2007. This is no doubt due to the eCommerce boom of the past several years, since most eCommerce businesses choose USPS for their shipping needs.
USPS Market Share Percentage Increases (As Measured by Revenue)
Here’s a quick list that shows how much market share USPS has captured since 2007, in percentages. Taken from the Postal Regulatory Commission’s report, these percentages reflect the Postal Service’s market share as measured by revenue. As you can see, the percentage increase first began rising drastically in 2009 and shows no sign of slowing down.
- 2007 – 9.22%
- 2008 – 9.92%
- 2009 – 11.18%
- 2010 – 12.05%
- 2011 – 11.85%
- 2012 – 14.16%
- 2013 – 16.22%
- 2014 – 17.24%
- 2015 – 17.41%
- 2016 – 18.49%
- 2017 – 19.36%
Why eCommerce Businesses Choose USPS over Other Carriers
Shipping with USPS is the best choice for eCommerce because of its mix of affordable rates and quick delivery times. However, that’s not the only reason they keep gaining market share. USPS also is the only carrier that can deliver mail and parcels to all United States residential addresses. Most eCommerce businesses ship to residential addresses, and USPS specializes in last mile delivery.
Lastly, USPS dominates eCommerce because shippers can buy discounted USPS postage with online shipping software. Most shipping software solutions offer postage at Commercial Pricing rates, which represents the deepest level of discounts USPS offers. Simply put, when eCommerce businesses ship with USPS, they are saving the most money and getting their packages delivered quickly at the same time.
Which shipping carrier do you use for your eCommerce business? Leave a comment and tell us about your experience!