E-commerce and logistics company grew revenues to $1.7 billion last year
E-commerce and logistics company Mailpac has seen an expansion in business in 2020 despite the downturn in the Jamaican economy.
So prosperous was 2020 for Mailpac that the company grew its revenue to $1.7 billion, owing to the numerous strategic initiatives employed over the past few years, as well as the unique demand created from the pandemic. While the company does not have an annual comparative because it was formed in September 2019, revenues for the fourth quarter of 2020 were $518.9 million, which was 43.2 per cent higher than the $362.3 million achieved in the same quarter of the previous year.
Though it is difficult to differentiate the growth that came from the effect of the pandemic versus the organic growth experienced, the team at Mailpac has worked feverishly to continue to differentiate itself in the ever growing and highly competitive e-commerce market. In fact, in just the past 15 months of operation, Mailpac has enacted several initiatives to enhance and enable growth.
These include the expansion of its warehouse and processing facilities to increase throughput, the enhancement of its processing technology to reduce the number of touchpoints, the expansion of its customer service team and technology to increase responsiveness as well as the expansion of pickup locations across the island to deepen market reach.
In addition, Mailpac introduced online payments to make delivery faster and more seamless, implemented pickup lockers to enable alternative, self-service collection, developed the Mailpac MasterCard to create access for the underbanked and won a unique ‘free-zone’ licence in the US enabling tax-free shopping for its customers. During the period, Mailpac also upgraded its customer app for better tracking, pre-alerting and interfacing, introduced an exclusive API integration with Amazon and eBay to enhance customer experience and created an exclusive ‘Free Returns’ solution.
Mailpac is boasting about its enhanced local delivery capabilities and reach, expansion of its Mailpac Local platform to islandwide fulfillment, same-day grocery delivery with Mailpac Local and online payments.
Gross profit rising as a result of expansion initiatives
With these initiatives and enhancements to its business, Mailpac has seen its gross profit for 2020 amounting to $819.5 million, a strong 47 per cent growth of revenue generated in that year.
Conversely, 2020 was not without challenges and learnings.
While the move into the year prepared the company for volume growth and significantly enhanced its operating protocols, the unexpected spike in package volume from the impact of COVID adversely affected its gross margins.
As a result the company incurred extraordinary spending on charter flights and other freight solutions to offset the shortage of air cargo capacity due to the pandemic.
These challenges caused Mailpac to quickly and aggressively identify alternatives and long-term solutions to ensure that our airlift capacity and cost structure are flexible and scalable in the future. In the end, Mailpac’s net income for the year came in at a $443.1 million.
Mailpac said this performance significantly speaks volumes to the scope and opportunity of the business.