The Highly Competitive Courier And Logistics Marketplace In The UK

When people and businesses want their parcels to be delivered to a specific destination, it is very likely that they will choose cheap courier international to save on costs. However, cost must not always be the deciding factor that will affect choice, because the safety and security of the parcel is more critical.

The dramatic explosion in ecommerce has presented an opportunity for courier companies because of the millions of parcels that have to be delivered to customers. However, the courier industry in the United Kingdom is highly competitive because of the presence of cheap courier international services competing with large foreign logistics companies like Hermes, DHL, UPS and FedEx. UK’s dominant Royal Mail has also prioritized the expansion of parcel delivery.

Parcel delivery is a typical low margin business because retailers try to attract more customers by offering low prices and free and faster delivery. In some instances, they encourage their customers to pick up the goods they ordered online through click and collect services.

Meanwhile, DX, a UK courier and logistics company that specializes in next day delivery of confidential mail, parcels and heavy items like sofas and beds is trying to reinvent itself and bolster business. However, DX’s secure document delivery service has become a victim of email. The introduction of technology like chip and pin has encouraged banks to send credit and debit cards through regular mail instead of the more expensive courier service like DX.

While the secure document delivery service of DX is obviously on a decline, their freight business is growing. DX has better performance in two-person delivery service of heavier items. However, DX also faces mounting competition because UK’s logistics market is heavily populated with large companies like Clipper and Wincanton that has gained a number of contracts in the retail market.

Through the internet, it has become rather easy and convenient for consumers to compare the quotes of cheap courier international services before they make a decision. The virtual environment also allows consumers to access the websites of online courier services at any time of the day. 24/7 availability allows consumers more time to compare options and make sound choices.

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