Procurement Market Intelligence Report
Letter & Parcel Delivery Services
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Letter & Parcel Delivery Services Global Overview
Definition
Summary
Suppliers, also called carriers or couriers in this report, transport mail and small packages domestically and internationally. This report includes carriers that operate internationally, nationally, regionally, and locally. Key buyers are retail stores and e-commerce stores. Key suppliers are the carrier companies, including the US Postal Service (USPS). This report excludes general freight and logistics services for bulk items and heavy shipments (i.e., shipments weighing more than 150 pounds).
This Report Includes:
- Mail Transport
- Package Transport
Not in this Report:
- Logistics Services
- Consulting Services
Global Letter & Parcel Delivery Services Procurement Trends
Discover the top international trends affecting procurement in the global Letter & Parcel Delivery Services market.
Neutral
Crude oil prices dip, but natural gas and fuel prices remain volatile in 2025
- Oil prices have been falling with the introduction of higher tariffs and the predicted decline in global demand. The OPEC+ group of countries also announced they would be unwinding production cuts and increasing their collective output target for May by 411,000 barrels per day.
- Trade wars, ongoing conflict between Hamas and Israel, and general unrest in the Middle East are causing uncertainty surrounding oil prices, which has led to volatility in prices. In the third week of May 2025, crude oil prices hit $63.67 per barrel, but volatility remains as geopolitical concerns remain.
- Natural gas prices rallied early in 2025 with colder-than-usual temperatures in the United States and high demand, topping out at $4.68/MMBtu in March. Prices have since fallen with the onset of trade wars and weakening demand projections to $3.64/MMBtu in the third week of May 2025.
- The national average of gasoline prices has been rising slightly due to refinery maintenance/outages and blending issues, hitting a national average of $3.15 per gallon in the third week of May 2025. However, gasoline futures have been volatile, falling due to fears of oversupply and deepening concerns about weakening demand with tariffs, but rising after trade deals.
Global Letter & Parcel Delivery Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 United States | 9,700 |
| #2 China | 7,965 |
| #3 Europe | 5,955 |
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Geography Drilldown - US, Canada & Europe
Average Cost of Letter & Parcel Delivery Services
United States
2026 Market Pricing$0.45 to $XXX.XX
per deliveryCanada
Europe
Average Price
Prices in the Letter & Parcel Delivery Services market range from $0.45 to $XXX.XX, depending on Delivery Destination, Package Weight & Size, Delivery Speed and Handling requirements. For example, lower prices are associated with Domestic ($4.00 to $28.00 per delivery), Local deliveries and Publicly accessible locations, whereas higher prices are associated with International deliveries ($60.00 to $350 per delivery), Hard-to-reach locations and Special secure locations (military, government buildings).
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Letter & Parcel Delivery Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Letter & Parcel Delivery Services market, prices in the US have grown 2.6% from 2022 to 2025. and +0.4% in Europe.
United States (2022-2025)
Canada (2019-2022)
Compound Annual Growth Rate
Europe (2022-2025)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Letter & Parcel Delivery Services
Total cost of ownership is Low in the Letter & Parcel Delivery Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Cancellations may raise the total cost of ownership unexpectedly.
Negotiated Before
Customization
Pre-evaluation
Billed During
Upgrades
Additional Fees
Unforeseen
Cancellations
Delays
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -2.4 in the United States. Buyer power is most positively impacted by Forecast Price Trend. It is most negatively impacted by Product Specialization. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Canada
Europe
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Long Distance Freight Truckers
- Local Freight Truckers
- Gasoline & Diesel Wholesalers
2nd
Tier Suppliers
- Freight Packing & Logistics Service Providers
- Freight Packing & Logistics Service Providers
- Gasoline & Diesel Bulk Stations
Biggest Letter & Parcel Delivery Services Suppliers in the US by Revenue
The largest Letter & Parcel Delivery Services vendors by revenue in the US are A-1 Express Delivery Service, Inc., Blue Streak Couriers and Directlink Logistics Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| United States Postal Service | National | Washington, US | >10,000 | 15-20 | ||||
| FedEx Corporation | International | MEMPHIS, TN | >10,000 | 20-25 | ||||
| United Parcel Service, Inc. | International | ATLANTA, GA | >10,000 | 25+ | ||||
| Deutsche Post Ag | Global | Bonn, DE | >10,001 | < 5 | ||||
| International Distributions Services plc | Global | London, UK | >10,001 | < 5 | ||||
| A-1 Express Delivery Service, Inc. | National | Atlanta, GA | 101-250 | < 5 | ||||
| Blue Streak Couriers | Regional | Holly Hill, FL | 101-250 | < 5 | ||||
| Directlink Logistics Inc. | Regional | Greensboro, NC | 1,001-10,000 | < 5 | ||||
| LSO Inc. | Regional | Austin, TX | 1,001-10,000 | < 5 | ||||
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Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Letter & Parcel Delivery Services market is 7.3% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is rising, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Market share concentration is high in the market due to the top four carriers, USPS, UPS, FedEx, and DHL, together generating more than 50.0% of market revenue. As a result, buyers are harmed by the lack of ability to leverage alternative vendors during the negotiation process.
Vendor risk is moderate in the letter and parcel delivery services market. The high level of competition among market suppliers introduces greater risk, but strong market demand and social trends mitigate risk to a degree, ensuring stability and reliability in vendor performance.
Although the supply chain risk posed by gasoline and diesel wholesalers is high, other upstream suppliers present less risk. For instance, long-distance freight truckers and local freight truckers are only moderately risky.
The United States is a net exporter of trailers and semi-trailers, indicating that domestic suppliers may have a greater ability to meet demands.
Supplier Information
United States Postal Service
United States Postal Service is a private company operating nationally in the information and professional, scientific & technical services sectors. The company's offerings include mailing software, letter & parcel delivery services, same-day last-mile delivery services, direct mail advertising services and... Subscribe to learn more
FedEx Corporation
FedEx Corporation is a public company operating internationally in the manufacturing, manufacturing, professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include business card printing, banners, letter & parcel Subscribe to learn more
United Parcel Service, Inc.
United Parcel Service, Inc. is a public company operating internationally in the manufacturing, information and professional, scientific and technical services sectors. The company's offerings include business card printing, mailing software, 3d printing & rapid prototyping services, letter & parcel delivery... Subscribe to learn more
A-1 Express Delivery Service, Inc.
A-1 Express Delivery Service, Inc. is a private company operating nationally. The company's offerings include letter & parcel delivery services. Founded in 1997, the company is currently headquartered in Atlanta, Georgia, United States of America with an estimated 175 employees. Subscribe to learn more
Blue Streak Couriers
Blue Streak Couriers is a private company operating regionally. The company's offerings include letter & parcel delivery services and same-day last-mile delivery services. Founded in 1984, the company is currently headquartered in Jacksonville, Florida, United States of America with an estimated 175 employees.... Subscribe to learn more
Deutsche Post Ag
Deutsche Post AG is a global logistics company operating under the DHL and Deutsche Post brands. It organizes its business into five divisions: the Express division, which transports urgent documents and goods on time from door to door, with Time Definite International (TDI) as its primary product; the Global... Subscribe to learn more
Directlink Logistics Inc.
Directlink Logistics Inc. is a private company operating regionally. The company's offerings include letter & parcel delivery services. Founded in 1974, the company is currently headquartered in Greensboro, North Carolina, United States of America with an estimated 5500 employees. Subscribe to learn more
International Distributions Services plc
International Distributions Services plc is a public company operating globally. The company's offerings include letter & parcel delivery services. Founded in 2013, the company is currently headquartered in London, United Kingdom with an estimated employee count of over 10,000. Subscribe to learn more
LSO Inc.
LSO Inc. is a private company operating regionally. The company's offerings include letter & parcel delivery services. Founded in 1990, the company is currently headquartered in Austin, Texas, United States of America with an estimated 5500 employees. Subscribe to learn more
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Procurement Management KPIs for the Letter & Parcel Delivery Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Employee Training Rate and Net Promoter Score (NPS). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Response time and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Employee Training Rate |
|
Number of employees that undergo evaluation Number of employees that pass evaluation |
The employee training rate represents the share of employees a company is able to successfully train. Buyers shipping high-value goods should place greater importance on this metric, as they will have a greater need for training and proper handling of these goods to minimize damages and losses. |
| Net Promoter Score (NPS) |
|
Number of promoters Number of detractors Number of passives |
The NPS determines how likely a customer is to recommend a vendor to another customer. Customers are classified as promoters, passives, and detractors through surveys that ask them to rate how likely they would be to recommend the vendor to another customer on a scale of 1 to 10. The NPS allows buyers to compare a numerical value between vendors directly to determine which vendors are looked at more favorably by their customer base. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Workforce
How many years of experience will the staff members transporting my goods possess?
What regular evaluations or screenings do your employees receive once hired?
Customer Service
What is the average wait time to talk to a customer service representative?
How many customer service representatives are on call during business hours to help resolve potential issues as they arise? How many are available outside of business hours?
Timeliness
What is your on-time delivery rate?
What percentage of your late trucks are more than one hour late?
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Letter & Parcel Delivery Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should briefly describe their organizations and include information such as their size and geographic location.
Buyers should include a description of their primary business operations and briefly explain why they require letter and parcel delivery services.
Statement Of Need
Buyers should describe their required services, including detailed specifications and desired rates.
Buyers should include details about their regular delivery needs, such as the volume of letters or the size, weight, quantity, and frequency of package shipments.
Project Budget
Buyers should disclose the full value of the contract, if available.
Buyers should indicate their expectations for prices based on the information in the Market Pricing section of this report.
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- Opportunity assessment
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- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
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