An Post Parcel Deliveries Up 40% in Q1 2026; EU Legislation Update Needed

Ecommerce is rapidly transforming the €20 trillion retail industry, shifting from physical stores to online channels. An Post, Ireland's postal service, delivered 75 million parcels last year and expects over 100 million this year. In Q1 2026, An Post parcel deliveries increased by 40% compared to Q1 2025, driven by exponential market growth and the closure of Fastway couriers. Despite this, ecommerce accounts for only 20% of retail sales in Ireland, matching the EU average but significantly lower than the UK (38%) and South Korea (over 50%).

Legacy postal services are evolving into technology-driven networks crucial for ecommerce. An Post, now a leading indigenous technology company, has become essential trade infrastructure. However, existing EU legislation, including the cross-border and postal directives, is outdated. EU Commissioner Stephane Sejourne recently met with EU postal chief executives to discuss new legislation, the delivery Act, aimed at reducing regulation and ensuring consistency in cross-border ecommerce trade.

This new legislation is vital for distinguishing postal companies from platforms like Amazon and TikTokShop, especially for SMEs. If postal networks cannot support SMEs, these businesses are forced onto platforms, incurring high costs (up to 50% margins). Postal companies offer lower costs, retaining SME independence. The delivery Act seeks to strengthen the postal industry by preventing over-regulation compared to private platforms, liberalizing costly universal service obligations for letter delivery, and facilitating cross-border transactions.

Ireland's government has underestimated ecommerce's impact, despite An Post's strong growth and earnings post-pandemic. An Post is recruiting 330 additional workers to increase capacity. However, slow decision-making and bureaucracy hinder its ability to meet new growth challenges. The government could assist by liberating semi-State companies like An Post, which receive no State funding, from unnecessary approval processes for non-expenditure decisions.

The ecommerce revolution also brings challenges like the loss of city and town retail presence, a top issue in recent UK local elections. Dublin and other Irish towns need to rethink their commercial mix and streetscapes. Globally, ecommerce contributes to a reglobalization of the economy, making trade wars inevitable. The EU plans to remove a de minimis tax exemption on non-EU goods to curb Chinese imports, but postal chief executives warn this misdirected move targets the postal ecosystem, while 95% of Chinese imports arrive via bulk commercial channels. The delivery Act, under the Irish presidency, must preserve the postal ecosystem as a democratic alternative to private global platforms.