E-commerce is growing dramatically. Competition is increasing among package delivery companies as customers increasingly favor online retailers over brick and mortar stores. Online shoppers want their purchases delivered quickly, reliably and affordably. Hence, the USPS must optimize its parcel delivery service to meet demand and increase revenue.
The USPS Office of Inspector General (OIG) noted in its July 8, 2015 report, “Package Services Forum Recap,” that the Postal Service has the advantage of a nationwide, last-mile delivery network that can handle small and large packages, at affordable prices. Customers and shippers depend on the network. According to the OIG report, it’s time for the USPS to improve its package delivery network, including same day delivery, use of drones, parcel lockers, local distribution and crowdsource delivery.
The Postal Service has increasingly used revenues from parcel delivery to help offset revenues lost due to declines in the volume of First Class Mail which have occurred as would-be mailers have resorted to electronic communication methods. In the USPS 2014 Annual Report to Congress (see pages 46-55), stamps.com conducted an independent study of shipping trends. The study, “Who’s Winning the Shipping War?” reveals the Postal Service is meeting the needs of e-retailers for fast, dependable parcel delivery. USPS is effectively vying for package business by introducing flat rate Priority Mail Boxes, complimentary insurance and tracking, improved scanning at additional checkpoints, day-certain delivery, free Saturday delivery and Sunday delivery in 20+ major metropolitan areas.
Additionally, the USPS is testing “gopost,” which is an easy way for customers to ship and receive parcels 24/7, using an ID card and PIN number. The gopost units are automated, self-service parcel lockers in convenient locations.
While the Postal Service and other shippers can all benefit from the growth in online shopping, the USPS is able to capitalize on its unique strengths to become the “carrier of choice” for last-mile delivery to consumers, even for parcels originated by competitive shippers.
To read the OIG report click here
To read the USPS 2014 Annual Report to Congress click here (note: see pages 46-55)