Package delivery or parcel delivery is the delivery of
shipping containers, parcels, or high value
mail
The mail or post is a system for physically transporting postcards, letter (message), letters, and parcel (package), parcels. A postal service can be private or public, though many governments place restrictions on private systems. Since the mid ...
as single shipments. The service is provided by most
postal system
The mail or post is a system for physically transporting postcards, letters, and parcels. A postal service can be private or public, though many governments place restrictions on private systems. Since the mid-19th century, national postal syst ...
s,
express mail
Express mail is an expedited mail delivery service for which the customer pays a premium for faster delivery. Express mail is a service for domestic and international mail, and is in most nations governed by the country's own postal administration ...
, private
courier companies, and
less than truckload shipping
Less-than-truckload shipping or less than load (LTL) is the transportation of an amount of freight sized between individual parcels and full truckloads. Parcel carriers handle small packages and freight that can be broken down into units less t ...
carriers.
Mail order and next-day delivery in the United Kingdom
Welsh entrepreneur
Pryce Pryce-Jones formed the first
mail order company in 1861.
He distributed catalogues of Welsh
flannel across the United Kingdom, with customers able to order by mail for the first time—this following the
Uniform Penny Post in 1840 and the invention of the
postage stamp
A postage stamp is a small piece of paper issued by a post office, postal administration, or other authorized vendors to customers who pay postage (the cost involved in moving, insuring, or registering mail), who then affix the stamp to the fa ...
(
Penny Black
The Penny Black was the world's first adhesive postage stamp used in a public postal system. It was first issued in the United Kingdom (referred to in philatelic circles as Great Britain), on 1 May 1840, but was not valid for use until 6 May. ...
) where there was a charge of one penny for carriage and delivery between any two places in the United Kingdom irrespective of distance—and the goods were delivered throughout the UK via the newly created
railway
Rail transport (also known as train transport) is a means of transport that transfers passengers and goods on wheeled vehicles running on rails, which are incorporated in tracks. In contrast to road transport, where the vehicles run on a pre ...
system.
[ Price-Jones promised next-day delivery throughout much of the country.]
Package delivery in the United States
In 1852 Wells Fargo
Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California; operational headquarters in Manhattan; and managerial offices throughout the United States and intern ...
, then just one of many such services, was formed to provide both banking and express services. These went hand-in-hand, as the handling of California gold and other financial matters required a secure method for transporting them across the country. This put Wells Fargo securely in the stagecoach
A stagecoach is a four-wheeled public transport coach used to carry paying passengers and light packages on journeys long enough to need a change of horses. It is strongly sprung and generally drawn by four horses although some versions are draw ...
business and prompted them to participate in the Pony Express
The Pony Express was an American express mail service that used relays of horse-mounted riders. It operated from April 3, 1860, to October 26, 1861, between Missouri and California. It was operated by the Central Overland California and Pik ...
venture. They were preceded, among others, by the Butterfield Overland Stage, but the failure of the latter put the business in Wells Fargo's hands and led to a monopoly on overland traffic that lasted until 1869 when the transcontinental rail line was completed. During this period they carried regular mail in addition to the package business, defying the post office monopoly; eventually, a compromise was worked out wherein Wells Fargo charged its own fee on top of federal postage, in recognition of the limitations of the post office reaching all areas easily.
From 1869 on, package services rapidly moved to the rail, which was faster and cheaper. The express office was a universal feature of the staffed railroad station. Packages travelled as "head-end" traffic in passenger trains. In 1918 the formation of the United States Railroad Administration resulted in a consolidation of all such services into a single agency, which after the war continued as the Railway Express Agency (REA).
On 1 January 1913, parcel post service began, providing rural postal customers with package service along with their regular mail and obviating a trip to a town substantial enough to support an express office. This, along with Rural Free Delivery, fueled a huge rise in catalogue sales. By this time the post office monopoly on mail was effectively enforced, and Wells Fargo had exited the business in favour of its banking enterprises.
Motor freight services arose quickly with the advent of gasoline and diesel-powered trucks. United Parcel Service
United Parcel Service (UPS, stylized as ups) is an American multinational corporation, multinational package delivery, shipping & receiving and supply chain management company founded in 1907. Originally known as the American Messenger Company ...
had its origins in this era, initially as a private courier service. The general improvement of the highway system following World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
prompted its expansion into a nationwide service, and other similar services arose. At the same time, the contraction of rail passenger service hurt rail-based package shipping; these contractions led to the cancellation of the mail contracts with the railroads, which in turn caused further passenger cuts. Eventually, REA was dissolved in bankruptcy in 1975.
Air mail was conceived of early, and scheduled service began in 1918. Scheduled airlines carried high valued and perishable goods from early on. The most important advance, however, came with the "hub and spoke" system pioneered by Federal Express (now known as FedEx
FedEx Corporation, formerly Federal Express Corporation and later FDX Corporation, is an American multinational conglomerate holding company focused on transportation, e-commerce and business services based in Memphis, Tennessee. The name "Fe ...
) in 1973. With deregulation in 1977, they were able to establish an air-based system capable of delivering small packages—including mail—overnight throughout most of the country. In response, the postal service initiated a comparable Express Mail
Express mail is an expedited mail delivery service for which the customer pays a premium for faster delivery. Express mail is a service for domestic and international mail, and is in most nations governed by the country's own postal administration ...
service. In the same period, they also began contracting with Amtrak
The National Railroad Passenger Corporation, Trade name, doing business as Amtrak () , is the national Passenger train, passenger railroad company of the United States. It operates inter-city rail service in 46 of the 48 contiguous United Stat ...
to carry mail by rail. Thus at the beginning of the 21st century, the U.S. consumer can choose from a variety of public and private services offering deliveries at various combinations of speed and cost.
By 2018, parcel carriers are hauling 14% of U.S. goods, up from 10% 25 years ago, and FedEx’s US domestic volume increased 4.9% in 2018, while UPS reported a 3.3% increase and a 5.6% increase in domestic next-day air package.
Same-day delivery
Same-day delivery for local parcels (such as documents) has long been available by local courier. Rail and air transport made same-day delivery feasible over longer distances; for example, packages shipped in the early morning can be delivered (at relatively high cost) anywhere in the mainland United States. Retail goods were seldom sold with shipping any faster than overnight.
Some online grocer
An online grocer is either a brick-and-mortar supermarket or grocery store that allows online ordering, or a standalone e-commerce service that includes grocery items. There is usually a delivery charge for this service. Brick-and-mortar supermark ...
s such as AmazonFresh
Amazon Fresh is a subsidiary of the American e-commerce company Amazon in Seattle, Washington. It is a grocery retailer with physical stores and delivery services in most major U.S. cities, as well as some international cities, such as Berlin, Ha ...
and Webvan, and delivery services operated by grocery stores like Peapod
Peapod Online Grocer (US), LLC is an American online grocery delivery service. By February 2022, it changed its name to Peapod Digital Labs.
The company is based in Chicago, IL and operated in several U.S. cities. It is owned by Netherlands-bas ...
and Safeway
Safeway is an American supermarket chain founded by Marion Barton Skaggs in April 1915 in American Falls, Idaho. The chain provides grocery items, food and general merchandise and features a variety of specialty departments, such as bakery, d ...
have had same-day or next-day delivery windows. Many restaurants have long delivered takeout locally on-demand, and online food ordering
Online food ordering is the process of ordering food, for Food delivery, delivery or pickup, from a website or other application. The product can be either ready-to-eat food (e.g., direct from a home-kitchen, restaurant, or a virtual restaurant) o ...
services have expanded this to many restaurants that would otherwise not deliver.
In the 2010s, various experimental services launched, using online shopping
Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the r ...
and retail warehouses or chain stores local to the ordering consumer for fulfillment at relatively low cost. The United States Postal Service
The United States Postal Service (USPS), also known as the Post Office, U.S. Mail, or Postal Service, is an independent agency of the executive branch of the United States federal government responsible for providing postal service in the U ...
"Metro Post" started in 2012, which by 2014 was shipping Amazon orders to 15 cities. In 2013, Walmart
Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores from the United States, headquarter ...
was delivering same-day packages from its own stores in test cities via UPS.
Kozmo.com
Kozmo.com was a venture-capital-funded online company that promised free one-hour delivery of "videos, games, dvds, music, mags, books, food, basics & more" and Starbucks coffee in several major cities in the United States. It was founded by yo ...
started a general one-hour local delivery service for small items in 1998, but failed in 2001. Same-day retail service Postmates began in 2011, and Google Express
Google Express, formerly Google Shopping Express, was a service from Google.Sarah Perez"Google Shopping Express Expands To More Cities, Rebrands As Google Express", ''TechCrunch'', October 14, 2014
At Google Marketing Live in May 2019, Google an ...
began in 2013 with a limited number of vendors and cities. By September 2015, Amazon Prime Now
Prime Now, LLC is a subsidiary of Amazon that oversees its same-day grocery shopping and delivery service. The name also originated a brand, including a custom app, to distinguish the service from Amazon's other offerings, but both the branding a ...
(which includes selected goods including some groceries) offered 1-hour delivery in 13 cities,
and the company launched Amazon Flex, which is a service similar to Postmates using part-time workers to deliver Amazon Prime Now packages.
Some vehicle for hire companies offer courier service and delivery of items ordered online from local vendors. Startups with similar services include Doorman in San Francisco, Chicago, and New York City, Deliv in San Francisco, WeDeliver in Chicago, and Shutl in Manhattan and Chicago.
An alternative to same-day delivery is in-store pickup
Omnichannel retail strategy, originally also known in the U.K. as bricks and clicks, is a business model by which a company integrates both offline (''bricks'') and online (''clicks'') presences, sometimes with the third extra ''flips'' (physica ...
, which has been adopted even by previously online-only retailers like Amazon.
Regional parcel carriers
In addition, a number of regional parcel delivery companies have sprung up since the 1990s. They combine the track and trace capability of the national carriers with the ability to guarantee next day delivery at ground rates over a larger delivery footprint. Because they are regionally based, they are able to improve shipment time in transit and increase shippers productivity with later pick up times. The regional parcel carriers can be a cost-effective enhancement to UPS and FedEx because they do not charge the full array of accessorial charges mentioned in the section above.
Heavy goods delivery
Delivery of heavy goods, such as furniture
Furniture refers to movable objects intended to support various human activities such as seating (e.g., stools, chairs, and sofas), eating (tables), storing items, eating and/or working with an item, and sleeping (e.g., beds and hammocks). Fu ...
or large appliances, requires a different logistical process than most small parcel couriers. For example, the supply chain
In commerce, a supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products to customers through a distribution system. It refers to the network of organizations, people, acti ...
of shipping large household goods from their manufacturers, to residential or business locations throughout the country and world is more complex and carries with it a higher potential for damage and error than with smaller packages.
Specialized less than truckload shipping carriers handle shipping furniture and other heavy goods from the manufacturer to a last mile hub." The last mile problem can also include the challenge of making deliveries in urban areas. Deliveries to retail stores, restaurants, and other merchants in a central business district often contribute to congestion and safety problems. Once the goods arrive at the last mile hub, which is typically located less than 200 miles from the final delivery location, a dedicated last-mile carrier, also known as a white glove delivery company, will handle the final leg of the delivery.
White glove refers to the highest service level for last-mile delivery of heavy goods. It involves the delivery team bringing the item to the room of choice, unpacking and assembling it, and removing all packaging and debris from the customer's home. There are over 4,000 white glove delivery companies in the United States, most of which only perform local deliveries. Some large less-than-truckload shipping carriers also offer white glove delivery service, and in recent years start-ups have emerged that offer nationwide networks of white glove delivery coverage. With the growth of E-commerce
E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain manageme ...
websites that sell heavy goods throughout the country and world the white glove delivery marketplace is shifting from mostly regional carriers working with local brick and mortar stores to E-commerce websites working with national delivery networks.
Package design for distribution
The individual sorting and handling systems of small parcel carriers can put severe stress on the packages and contents. Packaging
Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of designing, evaluating, and producing packages. Packaging can be described as a co ...
needs to be designed for the potential hazards which may be encountered in parcel delivery systems. The major carriers have a packaging engineering
Packaging engineering, also package engineering, packaging technology and packaging science, is a broad topic ranging from design conceptualization to product placement. All steps along the manufacturing process, and more, must be taken into ac ...
staff which provides packaging guidelines and sometimes package design and package testing
Package testing or packaging testing involves the measurement of a characteristic or property involved with packaging. This includes packaging materials, packaging components, primary packages, shipping containers, and unit loads, as well as the ...
services.
Many e-retailers have specific packaging requirements for their suppliers and also offer assistance in package design.
When shopping retail order from a warehouse, such as for online shopping
Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the r ...
, multiple items are often placed in a single box (secondary packaging) for cheaper and easier transportation and tracking. This creates waste when there is only a single item that could be transported without an outer box (for example something that already has durable retail primary packaging). To avoid this problem, some items are designated in the industry as ''ships in own container (SIOC)'' and will receive only a shipping label. Some products are specifically designed as SIOC for environmental or cost reasons.How COVID-19 might change packaging for good
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Package testing
Package testing or packaging testing involves the measurement of a characteristic or property involved with packaging. This includes packaging materials, packaging components, primary packages, shipping containers, and unit loads, as well as the ...
procedures include:
* ASTM International D7386- Standard Practice for Performance Testing of Packages for Single Parcel Delivery Systems.
*International Safe Transit Association
::Project 3K: Fast Moving Consumer Goods for the European Retail Supply Chain
::6-FEDEX-A: FedEx Procedures for Testing Packaged Products Weighing Up to 150 lbs
::6-FEDEX-B: FedEx Procedures for Testing Packaged Products Weighing Over 150 lbs
::6-SAMSCLUB, Packaged-Products for Sam’s Club® Distribution System Shipment
::Procedure 7D: Thermal Controlled Transport Packaging for Parcel Delivery System Shipment
Recipients
Recipients, if they are to receive packages in a timely and appropriate manner, must accommodate carriers. With the rise of the sharing economy
In capitalism, the sharing economy is a socio-economic system built around the sharing of resources. It often involves a way of purchasing goods and services that differs from the traditional business model of companies hiring employees to produce ...
multiple family dwelling with restricted access face difficulties due to increasing volume of deliveries, some of which, such as food, may be time-sensitive. Some have built storage rooms for packages and installed refrigerators.
Recipients often choose to use a high capacity “parcel box” which will store large numbers of items and mail at the same time. Deposited items are securely stored with the use of internal security baffles which allow parcels to drop down into the lower portions of the box whilst restricting the theft of items through the aperture opening.
See also
*Shipping list
Freight transport, also referred as ''Freight Forwarding'', is the physical process of transporting commodities and merchandise goods and cargo. The term shipping originally referred to transport by sea but in American English, it has been ext ...
* Document automation
*Mail carrier
A mail carrier, mailman, mailwoman, postal carrier, postman, postwoman, or letter carrier (in American English), sometimes colloquially known as a postie (in Australia, Canada, New Zealand, and the United Kingdom), is an employee of a post ...
*Last mile (transportation)
Last mile in supply chain management and transportation planning is the last leg of a journey comprising the movement of people and goods from a transportation hub to a final destination. "Last mile" was adopted from the telecommunications indust ...
* Parcel post
* Delivery drone
* Autonomous car
References
Further reading
A Brief History of the Package Delivery Industry
United States Treasury
The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and t ...
{{DEFAULTSORT:Package Delivery
Postal systems
Express mail
Packaging