Poste Italiane Aims to Compete with Amazon’s Prime Delivery

Poste Italiane Aims to Compete with Amazon’s Prime Delivery

Howdy!

As companies continue to aim for a big slice of the eCommerce pie, online shopping becomes easier and faster for consumers.   

The tightening competition between retailers, suppliers, and logistics companies, who only have one goal in mind — to emerge as the best choice — has given online shoppers more options.

Even Italy’s leading postal provider, Poste Italiane, won’t allow others to gain an advantage over them. A year after launching their restructuring plan, they said that they’re going to more than double the volume of their parcel deliveries by 2022.

Although Poste had been suffering from low letter volumes since 2008, they said that this event was neutralised by a parcel volume boom in 2018. From there, they’ve been working to increase their market share for eCommerce delivery to 40% by 2022 from 33% in 2018.

According to Massimo Rosini, head of Poste’s M&P division:

“We aim to deliver 100 million parcels in 2022 compared with 45 million our staff delivered last year.”

Italy’s fast-growing eCommerce market

Poste Italiane are eyeing Italy’s growing eCommerce market, which currently has 19 million Italians shopping online mostly for clothes, fashion accessories, and electronics.

With Amazon’s Prime delivery service in control of the country’s largest cities, though, Poste are looking at fully implementing a joint delivery system that was introduced last year. They signed an agreement with labour unions to extend parcel delivery into the weekends.

They’re also setting up alternative delivery points and considering delivering parcels with drones and and driverless vehicles.   

Rosini said revenue from the M&P division is expected to remain stable at €3.5 billion this year, accounting for around one third of Poste’s total revenue of €11 billion expected for this year.

What are your thoughts on Poste Italiane’s eCommerce push in Italy? We hope to hear from you in the comments below.

As always, to your continued success,

Dave & Matt

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