The increase in online shopping has meant an explosion in the courier business volume.

The percentage of overseas purchasing imported through courier companies continues to rise, as the total retail imports have mushroomed. The growth has already been substantial.

Government figures show there was a jump in annual overseas purchasing between 2018 and 2022 — including goods declared to customs officials arriving collectively by courier, by residents at the airport, by households via sea and through the Bermuda Post Office.

In that four-year period, the combined total rose by more than $124 million — up by nearly 60 per cent.

The value of cargo imported by couriers alone, which includes purchases by residents, jumped 9.3 per cent, or by $15.5 million, last year, and is up more than 36 per cent, or nearly $50 million, between 2018 and 2022, government figures show.

The business for courier companies has been growing all along, in line with the rise in global online shopping.

But the lack of mobility occasioned by lockdowns and other issues derived from the pandemic, heightened the desire for online ordering amid a global e-commerce boom.

Kevin Smith, managing director of IBC Bermuda Ltd, agrees that the increase in courier shipments is because of the jump in online shopping.

He said: “Since the pandemic, people have become more accustomed to ordering online. With the ease of use, the variety of goods available and our delivery service, shipping with ZipX has become convenient, fast and cost-effective."

Their competitors, Mailboxes, have been active in advertising, also seeking to take advantage of the growth in demand.

The size of the global courier, express and parcel market was estimated at more than $413 billion this year and is anticipated to register a compound annual growth rate of more than 10 per cent, going forward.

Kenny Thompson, the president of Mailboxes, said their courier business growth has tracked in alignment with global e-commerce. “We have a service that people like and it helps save them money, helps expand their options.”

There is no doubt that the world has fallen in love with online shopping, but if there was an inflection point for a marked increase in overseas shopping online for locals, the pandemic was it.

Mark Simons, Mailboxes head of business development, remarked: “Once the Government allowed us to move around again during Covid, people began bringing in everything. It was unbelievable.”

It is fed by a global e-commerce market of $13 trillion in 2021. Rapid urbanisation across the globe is one of the key factors driving the growth of the market. Furthermore, increasing internet penetration and usage of devices, such as smartphones, laptops and tablets to access e-commerce portals, is also providing a boost to the market.

Back here at home, the Retail Sales Index figures include an indication that through direct purchases by Bermuda residents and businesses, couriers transported to the island a record $182 million worth of goods last year.

It represents a large chunk of imports officials reflect monthly in Retail Sales Figures as “Selected Overseas Declarations”.

Overseas declarations reflect the value of goods declared, whether for personal or business use, by returning residents via the airport, imports via couriers, imports via the Bermuda Post Office and the value of non-commercial imports by households via sea.

The RSI government report compared December 2022 with the December the year before, and noted that overseas declarations had decreased 1.5 per cent compared with December 2021.

But the report continued: “Overseas declarations were 35.4 per cent higher when compared to the pre-pandemic period of 2019. Imports via courier decreased $1.7 million to $16.2 million due to the lower importations of pharmaceutical and chemical products. Imports by households via sea decreased $0.2 million to $10.4 million as a result of decreased imports of beverages, spirits, vinegar, machinery, mechanical appliances and electrical equipment.

Declarations at the airport by returning residents increased $1.4 million to $5.7 million. Imports via the Bermuda Post Office remained the same at $0.6 million.

But the couriers made up the difference on a month-by-month basis.