Success in e-commerce delivery drives profitable 2017 for Canada Post
Canada Post is the country’s No. 1 parcel company – and its important role in e-commerce was a key driver of its 2017 profit before tax of $74 million.
Canada Post has grown annual Parcels revenue by more than $900 million since 2011, the year it pivoted to focus on e-commerce. By delivering for online shoppers and retailers across the country, Canada Post is meeting the needs of Canadians – and outpacing the decline in mail revenue.
In 2017, revenue from Transaction Mail – letters, bills and statements – declined $124 million, while Parcels revenue grew $393 million compared to 2016.
Parcels revenue and volumes grew at an incredible rate in 2017 compared to the year before. We’re seeing the impact day after day, too. We delivered one million parcels in a single day for the first time ever in December 2012. Now they happen throughout the year.
Snapshots of e-commerce growth
Why marketing mail works for senders and receivers
Canadians love a bargain, and to shop and eat out. They want and need coupons during the back-to-school season, for example, and during and after Christmas – when they’re stretching their dollars.
Marketing mail helps by making them aware of sales and discounts and of new stores or eateries in a way that is tangible and personal. For many small, owner-operated or family-run businesses, mailing a flyer is not only the best way to reach nearby consumers, but also the only advertising they can afford. Larger businesses also appreciate the personal touch that marketing mail brings to their campaigns, and often combine it with digital advertising.
In 2017, Neighbourhood Mail, the largest product category by volume, saw both revenue and volumes increase compared to 2016:
Fewer letters, more addresses
Transaction Mail is what Canada Post calls the billions of letters, bills and statements we deliver to Canadians. This kind of mail peaked in 2006 – and there’s been less of it every year since, due to digital technology. Yet as the country grows, there are more addresses to serve. This ongoing growth in addresses to serve, coupled with less Transaction Mail to deliver, remains a significant challenge for Canada Post.
Canada Post plays a vital role in the digital age for several reasons, including its ability to adapt and innovate. But at the core of its service and its success is the hard work, dedication and pride of its more than 50,000 employees. Those qualities and their contributions are essential for an iconic national brand like Canada Post.
They are also a source of the deep bond Canadians have with an institution older than the country itself.