Postal Dilemmas

Key findings:

Most mail is sent by a small number of large businesses whose volumes are typically driven by price more than speed:

Most mail is sent by a small number of large businesses, namely large consumer facing businesses (e.g. utilities, financial services, State). In the main, most of these mailers do not require next day delivery and so prefer to use cheaper deferred delivery products, that is, the mail is sent for delivery by 2-3 working days.

Most of their mail is letters, largely transactional mail such as bills and statements.

In particular, it seems that large mailers are seeking the cheapest price for mail. This was confirmed through the research interviews and observed switching behaviour. For example, since 2014, a large volume of mail has moved from a two-working day delivery service (called

Bulk 6) to a three-working day delivery service (called Bulk 11) at a price that is 2 cents cheaper, currently 50 cents per letter1.

An Post’s ability to continue to deliver a sustainable and affordable universal postal service will be in large part determined by the future mailings of these large mailers.

Read the full results here