Mail profitability in international posts
The U.S. Postal Service Office of Inspector General (OIG) analyzed the mail profitability of international posts in collaboration with WIK-Consult. The study provides insights to the importance of mail to the overall financial results of postal operators, the main drivers of mail profitability, and lessons that can be learned from international posts for the USA.
Compared to a booming package delivery industry that is being driven by e-commerce, mail is often viewed as a dying legacy business for posts around the world. But the financial results of many posts tell a different, more optimistic story: Despite declining letter mail volumes, letter mail remains the largest source of profits a in a majority of the posts we surveyed. Most posts have succeeded in keeping their letter mail business profitable and have maintained, or even increased, EBIT margin from their mail business by introducing efficient technologies, cost-cutting measures, and price increases. Mail therefore remains, for the foreseeable future, a key component of their product portfolios and profitability.
The study is available for download.