Parcel and Postal Technology International
  • News
    • A-E
      • Automation
      • Business Diversification
      • Construction / Development
      • Cross-border
      • Delivery
      • E-commerce
      • Expo
    • F-O
      • Freight
      • IT & Systems
      • Last Mile
      • Lockers / PUDO
      • Logistics
      • Mail
      • Operations
    • P-R
      • Packets
      • Parcels
      • Peak
      • Retail
      • Returns
    • S-Z
      • Sorting Systems
      • Staff / Personnel
      • Sustainability
      • Technology
      • Vehicles / Fleet
  • Features
  • Online Magazines
    • March 2025
    • September 2023
    • June 2023
    • March 2023
    • December 2022
    • SHOWCASE 2019
    • Archive Issues
    • Subscribe Free!
  • Opinion
  • Videos
  • Analysis
  • Awards
    • 2025 Awards
    • Previous Winners
  • Supplier Spotlight
  • Parcel + Post Expo
LinkedIn YouTube Twitter
  • Sign-up for Breaking News Emails
  • Meet the Editors
  • Contact Us
  • Media Pack
Subscribe
LinkedIn Facebook
Parcel and Postal Technology International
  • News
      • Automation
      • Business Diversification
      • Construction / Development
      • Cross-border
      • Delivery
      • E-commerce
      • Expo
      • Freight
      • IT & Systems
      • Last Mile
      • Lockers / PUDO
      • Logistics
      • Mail
      • Operations
      • Packets
      • Parcels
      • Peak
      • Retail
      • Returns
      • Sorting Systems
      • Staff / Personnel
      • Sustainability
      • Technology
      • Vehicles / Fleet
  • Features
  • Online Magazines
    1. December 2024
    2. September 2024
    3. June 2024
    4. March 2024
    5. SHOWCASE 2019
    6. Subscribe Free!
    Featured
    April 2, 2025

    In this Issue – March 2025

    Online Magazines By Web Team
    Recent

    In this Issue – March 2025

    April 2, 2025

    In this Issue – December 2024

    December 5, 2024

    In this Issue – September 2024

    September 19, 2024
  • Opinion
  • Videos
  • Analysis
  • Awards
    • 2025 Awards
    • 2024 Award Winners
    • 2023 Award Winners
    • 2022 Award Winners
    • 2021 Award Winners
    • 2020 Award Winners
    • 2019 Award Winners
    • Previous Winners
  • Supplier Spotlight
  • Parcel + Post Expo
LinkedIn Facebook
Subscribe
Parcel and Postal Technology International
Opinion

Five ways postal operators can profit from e-commerce

Opinion WritersBy Opinion WritersJanuary 12, 20164 Mins Read
Share LinkedIn Twitter Facebook Email

Postal operators were in the right place at the right time when e-commerce started to take off earlier this century. Posts dominated the B2C parcel market in many countries, so it was natural that postal operators would benefit from e-commerce growth.

In recent times, growth in e-commerce has outstripped growth in posts’ parcel volumes, indicating that their market share is slipping. Is it wise for posts to heavily rely on parcel delivery for future revenues?

Delivery is only one part of the e-commerce chain, and in the face of growing competition in the delivery sector posts must find other ways to profit from e-commerce.

1. Online advertising and marketing

Many postal operators have or are building customer databases containing individuals’ and businesses’s delivery data, along with other demographic and sales information. How powerful could that data be when it comes to online advertising and marketing?

The challenge for postal operators here is how to leverage that information without violating the public’s trust in the post.

2. Helping small retailers sell online

Postal operators can help small producers and retailers to start selling online, and in the process make commissions on sales while growing parcel volumes.

Australia Post’s Farmhouse Direct platform is aimed at farmers and primary producers, helping them to sell homegrown produce and handmade products. Australia Post provides the producers with an online presence through the farmhousedirect.com.au website.

Farmhouse Direct automatically bills the seller a commission of 7.5% on sales. Australia Post ships all products sold on Farmhouse Direct. Australia Post doesn’t act as a warehouse for sellers who list products on Farmhouse Direct – the products are shipped directly from the farm to the customer.

More recently, Australia Post has started a trial whereby small, local producers can sell products online via a website branded with their local post office. These locally branded websites use the Farmhouse Direct platform. Both Australia Post and the local post office owner make a commission on online sales.

3. Selling into overseas markets

Growing numbers of postal operators have signed deals with JD.com and Alibaba to help local producers and retailers sell into China via local e-commerce platforms. Agreements that focus on increasing international outbound parcels are a good start, but La Poste has developed a value-add solution for prestige and luxury producers selling into China.

La Poste is using technology to counter fake French wines and other counterfeit luxury goods that are being sold in Southeast Asia. With this service, La Poste handles the international outbound shipments and also provides an IT solution, whereby Asian consumers can use their smartphones to check the provenance of luxury French goods.

4. Payment services

The banks and PayPal are the major players in e-commerce payment services. Can postal operators compete in this sector?

A few years ago Australia Post acquired online payment service SecurePay, which provides internet merchant services and a payment gateway.

If the post has set up an e-commerce platform, and handles the shipping for sales made through that platform, then it may make commercial sense to also provide merchant services for that platform.

5. In-store

Post office networks are extensive, with post offices located in metropolitan, regional, rural and remote areas. Already, many postal operators have implemented a ‘click-and-collect’ solution for e-commerce, where customers can send their purchases directly to the post office to await collection. This gives certainty to the customer and removes the risk of a failed first-time delivery.

But a click-and-collect offering is just another form of delivery. More interesting is the concept of pop-up shops or sharing retail space.

Many e-commerce customers still like to see and touch products before they buy. Internet sellers often don’t have their own bricks-and-mortar retail network, or may only have a small number of flagship stores. By renting out space in post offices, the post can offer these retailers a physical presence.

Conclusion

As parcel delivery becomes increasingly competitive, postal operators need to earn more from other parts of the e-commerce chain. The post has the reputation and the assets to be able to deliver e-commerce services to sellers and buyers.

Ian Kerr is the founder and host of the Postal Hub Podcast. Ian has a deep knowledge of the Australian postal network, both in retail and delivery, through his many years working for the Post Office Agents Association Limited (POAAL), the national association for small business owners in the Australian postal sector.

To read more from the Postal Hub Podcast, click here.

Share. Twitter LinkedIn Facebook Email
Previous ArticleEuropean Commission approves FedEx acquisition of TNT Express
Next Article UPS improves USA-Mexico cross-border delivery services

Related Posts

Opinion

OPINION: The evolution of the postal industry over the past 25 years

June 17, 20254 Mins Read
Opinion

OPINION: How Chinese CEP giants are shaping the future of Europe’s last-mile logistics

May 14, 20255 Mins Read
Opinion

OPINION: The impact of open smart locker networks on the future of parcel logistics

April 23, 20254 Mins Read

Receive breaking stories and features in your inbox each week, for free


Enter your email address:


Latest News

UPS Healthcare expands Asia-Pacific services with Singapore logistics facility

June 23, 2025

Burgoynes joins The APC network to offer next-day parcel delivery

June 23, 2025

DPD Switzerland launches intelligent EV charging project with autoSense

June 20, 2025
Getting in Touch
  • Contact Us / Advertiser
  • Meet the Editors
  • Download Media Pack
  • Breaking News Emails
Our Social Channels
  • Facebook
  • LinkedIn
Supplier Spotlights
  • BOWE INTRALOGISTICS
  • Cookie Policy
  • Privacy Policy
  • Terms & Conditions
  • Notice & Takedown Policy
  • Site FAQs
© 2025 UKi Media & Events a division of UKIP Media & Events Ltd

Type above and press Enter to search. Press Esc to cancel.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.

CookieDurationDescription
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie records the user consent for the cookies in the "Advertisement" category.
cookielawinfo-checkbox-analytics1 yearSet by the GDPR Cookie Consent plugin, this cookie records the user consent for the cookies in the "Analytics" category.
cookielawinfo-checkbox-functional1 yearThe GDPR Cookie Consent plugin sets the cookie to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary1 yearSet by the GDPR Cookie Consent plugin, this cookie records the user consent for the cookies in the "Necessary" category.
cookielawinfo-checkbox-others1 yearSet by the GDPR Cookie Consent plugin, this cookie stores user consent for cookies in the category "Others".
cookielawinfo-checkbox-performance1 yearSet by the GDPR Cookie Consent plugin, this cookie stores the user consent for cookies in the category "Performance".
elementorneverThe website's WordPress theme uses this cookie. It allows the website owner to implement or change the website's content in real-time.
JSESSIONIDsessionNew Relic uses this cookie to store a session identifier so that New Relic can monitor session counts for an application.

Functional

Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.

CookieDurationDescription
__cf_bm30 minutesCloudflare set the cookie to support Cloudflare Bot Management.

Analytics

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.

CookieDurationDescription
CONSENT2 yearsYouTube sets this cookie via embedded YouTube videos and registers anonymous statistical data.
uidsessionThis is a Google UserID cookie that tracks users across various website segments.
vuid1 year 1 month 4 daysVimeo installs this cookie to collect tracking information by setting a unique ID to embed videos on the website.
_ga1 year 1 month 4 daysGoogle Analytics sets this cookie to calculate visitor, session and campaign data and track site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognise unique visitors.
_ga_*1 year 1 month 4 daysGoogle Analytics sets this cookie to store and count page views.

Advertisement

Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.

CookieDurationDescription
OAGEOsessionOpenX sets this cookie to avoid the repeated display of the same ad.
OAID1 yearCookie set to record whether the user has opted out of the collection of information by the AdsWizz Service Cookies.
VISITOR_INFO1_LIVE5 months 27 daysYouTube sets this cookie to measure bandwidth, determining whether the user gets the new or old player interface.
YSCsessionYoutube sets this cookie to track the views of embedded videos on Youtube pages.
yt-remote-connected-devicesneverYouTube sets this cookie to store the user's video preferences using embedded YouTube videos.
yt-remote-device-idneverYouTube sets this cookie to store the user's video preferences using embedded YouTube videos.
yt.innertube::nextIdneverYouTube sets this cookie to register a unique ID to store data on what videos from YouTube the user has seen.
yt.innertube::requestsneverYouTube sets this cookie to register a unique ID to store data on what videos from YouTube the user has seen.

Others

Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.

CookieDurationDescription
VISITOR_PRIVACY_METADATA5 months 27 daysDescription is currently not available.

SAVE & ACCEPT
Powered by