Amazon Looks to USPS to Deliver the Goods

Beginning in October of 2014, the Postal Service has been successfully delivering groceries for Amazon customers in certain cities including San Francisco and New York. And, similar delivery services could expand. Postmaster General Megan Brennan told Bloomberg Business that the USPS is seeking more customers who are interested in customized delivery of their products.

Amazon owns a network of at least 15 facilities that transports packages to nearby post offices for delivery by mail carriers.

According to Bloomberg, the Postal Service handled about 40% of Amazon’s packages or about 150 million items last year. Moreover, the USPS offers Amazon a discounted rate of about $2 per package because the retailer does most of its own processing, including computerized address lists. The Postal Service handled more Amazon deliveries than either UPS or FedEx.

To meet the demand of online shoppers, the Postal Service has invested funds in new equipment. For example, the USPS spent $200 million in 2014 on 270,000 handheld scanners connected to the Internet. This allows mail carriers to provide customers with real time tracking of their packages.
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