UPS shifts focus to returns and bulky shipments to expand market

It is learned that on April 23, according to foreign media reports, due to the continuous decline in freight volume, UPS plans to focus on developing return business and large cargo delivery services to expand its potential market.

It is understood that UPS's latest financial report shows that in the first quarter of 2024, the average daily transaction volume of UPS's US business decreased by 3.2% year-on-year, and the average daily transaction volume of UPS's international business decreased by 5.8% year-on-year. However, the rate of decline has slowed down, which is an improvement from the previous quarter, and has decreased by less than 1% as of March.

UPS CEO Carol B. Tomé said that the improvement in the international market was due to the growth of export business in some markets, but UPS's business demand was still relatively weak. In order to expand the market, UPS will focus on returns and large goods in the future.

Previously, UPS acquired Happy Returns in October last year to provide label-free return services. This business effectively increased UPS's pickup and delivery density and accumulated repeat customers. In the first quarter of 2024, UPS's return business volume in the United States increased by 1.4%, and Happy Returns' average daily transaction volume increased by more than four times.

At the same time, Tomé said that through UPS's logistics company Roadie , UPS will be able to expand its large-item transportation services that are not suitable for its small package delivery network. The new business plan will enable UPS to seize additional revenue opportunities in the huge US$60 billion market to improve its current operating situation.

Editor ✎Rayna/

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