Parcel delivery firms Evri and Yodel have both reported record volumes in 2023, driven by changing consumer behaviour.
Both companies highlighted the increasing use of online marketplaces for a surge in the number of parcels they delivered. Evri suggested consumers looking for bargains on Chinese ecommerce fashion sites and marketplaces helped to push up volumes. While, Yodel recorded more shoppers turning to second-hand marketplaces which increased consumer to consumer (C2C) parcel numbers.
Delivery network Evri, formerly Hermes, delivered a record performance of more than 150 million parcels over its peak festive period, driven by a 21% surge in deliveries in the final Christmas week as consumers left their shopping late.
Evri said customers appeared open to shopping around in the search for value, holding out for bargains with traditional retailers, but also expanding the use of new brands and the increased use of marketplaces. Evri saw continued strong demand from China’s ecommerce fashion and online marketplace new entrants over the festive season.
Evri grew parcel volumes to more than 154 million over the nine weeks to 30 December 2023, including a delivery push in the final seven days – in contrast to lower volumes around Black Friday in November.
The company said its best-ever peak season was supported by the £32mn service investment plan into its operations and customer service teams with service levels consistently at or above 99% for standard deliveries – up several percentage points on last year. The business hired over 6,500 colleagues to fulfil orders and handle customer queries during the period between Black Friday and Christmas.
Chris Ashworth, Evri’s chief customer officer, said: “Evri delivered a Christmas cracker – with record parcel volumes – driven by its strategic investments made throughout the year and colleagues pulling out all the stops to deliver the best possible festive period for customers. Last year’s performance was hindered by strikes by the major carrier but this much-improved peak season capped off an incredible 2023 for Evri in which it served over 12 million customers a week and delivered more than 720 million parcels.
“Evri has deep and long-lasting relationships with more than 80% of the UK’s leading retailers. We were pleased that our service performance across the year and particularly across the peak weeks has been acknowledged across our client base with very positive feedback from brands, including M&S. Every parcel matters – and that is why Evri is committed to continually improving its services by investing in its people, infrastructure and processes.”
2023 was also a record year for Yodel with full-year volumes up 3% to 191m parcels, and revenues up 3.4%.
The independent parcel carrier credited its customer app for helping to deliver the “best peak” since the pandemic. It reported customer satisfaction ratings were up 6% year-on-year, and it now has a Trustpilot score of 4.1.
Furthermore, its sustainable Out of Home network has seen volumes double. This is in part due to consumers choosing pre-loved items. It hopes there will be more growth in 2024, as its expands a multi-year partnership with second-hand marketplace Vinted and PayPoint.
Mike Hancox, CEO of Yodel, commented: “I’m delighted that Yodel has successfully navigated the challenges of rising labour costs and high inflation in 2023 whilst continuing to support our retail clients and their customers with outstanding levels of service and re-shaping our business to perform strongly in growing categories.
“In the coming year, our focus will be to consolidate on our recent investments in technology and to grow our Out of Home network, in response to the huge increase in customer demand for pre-loved products. Thanks to the convenience, personal service, security, and greater sustainability that this channel offers, growing numbers of customers are seeing the benefits of using this service.”
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