Post - eCommerce - Parcel

The postal service for Germany

We deliver around 59 million letters every working day in Germany, making us Europe’s largest postal company. Our products and services are targeted towards both private and business customers and range from physical, hybrid and electronic letters to merchandise delivery and include additional services such as cash on delivery, registered mail and insured items.

In the year under review, the German market for business communications was around €4.5 billion (previous year: around €4.5 billion). Here we look at the business customer market in which we compete, including the companies that operate as service providers in this market – i.e., both competitors offering end-to-end services and consolidators providing partial services. Our market share increased slightly to 61.7 % compared with the prior year (61.3 %).

German mail communication market, business customers, 2017

Market volume: €4.5 billion           
Deutsche Post 61.7 %  
Competition 38.3 %  
Source: company estimates.

Targeted and cross-channel advertising

On request, our dialogue marketing unit offers end-to-end solutions to advertisers – from address services and tools for design and creation all the way to printing, delivery and evaluation. This supports cross-channel, personalised and automated customer dialogue so that digital and physical items with inter-related content reach recipients according to a co-ordinated timetable and without any coverage waste. Our digital solutions allow companies to open a cross-channel dialogue with their customers.

The advertising market in Germany gained 1.3 % in 2017 to reach a volume of €27.1 billion, primarily because companies increased their advertising expenditures. Our share of the highly fragmented media market rose slightly to 8.2 %. As a result of a more accurate enquiry method in the digital media segment, the previous year’s total market volume increased arithmetically by €2.4 billion to €26.8 billion. As a result, our market share for the previous year decreased arithmetically to 7.9 %.

German advertising market1, 2017

Market volume: €27.1 billion           
Competition 91.8 %  
Deutsche Post 8.2 %  
1 Includes all advertising media with external distribution costs; the placement costs are shown as ratios to each other. Source: company estimates.

Sending mail and merchandise internationally

We carry mail and light-weight merchandise shipments across borders and provide international dialogue marketing services. For business customers in key European mail markets, we offer international shipping services. For the growing e-commerce sector, we develop solutions for international shipments to consumers (B2C). Our portfolio also comprises consulting and services to meet all physical and digital dialogue marketing needs. Furthermore, we offer physical, hybrid and electronic written communications for international business customers.

The global market volume for outbound international mail amounted to around €5.9 billion in 2017 (previous year: around €5.8 billion). Our market share was slightly above the prior-year level at 16.4 %.

International mail market (outbound), 2017

Market volume: €5.9 billion
          
Competition 83.6 %  
Deutsche Post 16.4 %  
Source: company estimates.

Worldwide portfolio of parcel and e-commerce services

We maintain a dense network of parcel acceptance and drop-off points in Germany. Our portfolio of products and services allows recipients to choose whether they wish to receive their parcels during a specific delivery window, on the same day or as quickly as possible. They can also decide at short notice whether their parcels should be delivered to an alternative address, a specific retail outlet or a Paketshop. We offer support to business customers to grow their online retail businesses. We are able to cover the entire logistics chain through to returns management on request.

The German parcel market had a volume of around €10.8 billion in 2017 (previous year: around €10.1 billion). We succeeded in increasing our market share to 45.4 % (previous year: 45.1 %).

German parcel market, 2017

Market volume: €10.8 billion
          
Competition 54.6 %  
Deutsche Post 45.4 %  
Source: company estimates.

We expanded our cross-border portfolio of e-commerce services during the year under review. We grew our B2C network in Europe thanks to our entry into the UK market through the takeover of UK Mail at the end of 2016. At the beginning of 2017, we added the Spanish and Portuguese markets by reassigning companies from the Express division. Moreover, we expanded our European parcel business to include a total of 26 countries (including the German domestic market) via co-operation agreements in Ireland, Romania, Croatia and Bulgaria. There are more than 60,000 acceptance and drop-off points available to our customers in Europe.

Outside of Europe, we provide Domestic Delivery, Cross Border Delivery, and Fulfillment services in selected markets in the Americas, Asia Pacific and Middle East/Africa. Since 2016 domestic operations have been launched in Thailand, Malaysia, Vietnam and Chile in addition to the established domestic networks in the U.S. and India. Cross Border services are offered from the origin countries China, Hong Kong, Singapore, India, Australia, Thailand, Malaysia, Israel, the U.S. and Canada to more than 220 destination countries and territories worldwide. In cooperation with DHL Supply Chain we offer  a global network of e-commerce fulfillment centers.