Pack it up: The rising prevalence of online services will likely continue to restrain revenue and profit growth
Packing & Shipping Service Franchises Although the Packing and Shipping Service Franchises industry has experienced a decline in its traditional mailbox services as electronic communication has increased, e-commerce has conversely boosted demand for packaging and shipping from small businesses that have increasingly begun to sell their products to faraway customers. Additionally, although competition in business services has been on the rise, leading to a net drop in the number of franchises, strong national brands have helped grow average sales for remaining franchisees. As a result, industry revenue has increased over the five years to 2018. Over the five years to 2023, industry revenue is expected to continue growing, albeit at a slower rate. Successful franchises will need to branch out into value-adding services that draw small businesses into their stores, as businesses and consumers will continue to seek more economical options to ship domestic and international packages.
Establishments in this industry provide parcel packing and shipping, mailbox rental, other mail services and office support services. Reports in our Business Franchise collection focus solely on the operation of franchised outlets and exclude nonfranchise data. They show the total number of franchise outlets, total franchise revenue and the average profit margin earned by franchisees. Our reports also highlight the largest franchisors by market share.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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