Open Enrollment | Subscribe to Target Marketing HERE
Connect
Follow us on
Advertisement
 

Should USPS Be Charging More for Package Delivery?

August 6, 2014 By Heather Fletcher
Get the Flash Player to see this rotator.
 
It seems Amazon, FedEx and UPS get all the credit for zippy package delivery when it's really the oft-dubbed "lumbering" U.S. Postal Service that's likely responsible, according to the Wall Street Journal article "For FedEx and UPS, a Cheaper Route: the Post Office."

In the article updated on Aug. 4, Laura Stevens says the private companies' use of Parcel Select services "surged nearly 500 percent, to about 1.29 billion packages in 2013, from about 223 million in 2009." So USPS, in dire financial straits, is delivering more and more packages even as First Class mail volumes decrease. Stevens reports that the increase in package deliveries for private entities is raising the question of whether the USPS is charging enough for package delivery.

Direct mailers have long known companies including FedEx and UPS use the USPS for the last mile of package delivery. However, Stevens points out that the trip from the post office to the customer's door is the "most expensive last leg of the delivery."

Meanwhile, Parcel Select accounts for the plurality of the delivered mail pieces, but the less popular Priority Mail brought in triple the revenue, according to Q2 2014 figures (opens as a PDF).

"Both UPS and FedEx rely on the postal office for the back-end of their cheaper two- to seven-day delivery options, Smartpost for FedEx and Surepost for UPS," Stevens writes.

USPS averages $1.71 in revenue for Parcel Select packages, while FedEx brings in $1.78 for Surepost, she writes. "Analysts estimate Amazon pays about $2 to mail a package via the Postal Service versus $7 or $8 for UPS or FedEx ground," Stevens writes. So Amazon started taking packages to USPS.

So is USPS charging enough for package delivery? What can replace First Class mail as its primary revenue source? (opens as a PDF)

Please respond in the comments section below.
 

SPONSORED CONTENT

MORE ON DIRECT MAIL, PRINT AND POSTAL >>

FROM THE BOOKSTORE

Written by Millennials about Millennials, Cause for Change: Examines how Millennials communicate, volunteer, take action, influence their peers, and choose to give their time and moneyExplains how Millennials view their role in the workplace, and how their approach is re-shaping nonprofit culture from within Cause for Change: The Why and How of Nonprofit Millennial Engagement

Written by Millennials about Millennials, Cause for Change:
Examines how Millennials communicate, volunteer, take action, influence their peers, and choose to give their time and moneyExplains how Millennials view their role in the workplace, and how their approach is re-shaping nonprofit culture from within...

ORDER NOW

Reading The Ultimate  Insider’s Guide to Winning Foundation Grants is like peeking at someone’s  secret diary or personal email.  You feel  guilty.  This is privileged information.
Only in this case Martin Teitel WANTS to reveal everything  to you. A
 long-time foundation CEO, he’s fed up with the smoke and mirrors of  
grant seeking. Ultimate Insider's Guide to Winning Foundation Grants

Reading The Ultimate Insider’s Guide to Winning Foundation Grants is like peeking at someone’s secret diary or personal email. You feel guilty. This is privileged information. Only in this case Martin Teitel WANTS to reveal everything to you. A long-time foundation CEO, he’s fed up with the smoke and mirrors of...

ORDER NOW

 

SPONSORED CONTENT

MORE ON MARKETING STRATEGY >>

FROM THE BOOKSTORE

Written by Millennials about Millennials, Cause for Change: Examines how Millennials communicate, volunteer, take action, influence their peers, and choose to give their time and moneyExplains how Millennials view their role in the workplace, and how their approach is re-shaping nonprofit culture from within Cause for Change: The Why and How of Nonprofit Millennial Engagement

Written by Millennials about Millennials, Cause for Change:
Examines how Millennials communicate, volunteer, take action, influence their peers, and choose to give their time and moneyExplains how Millennials view their role in the workplace, and how their approach is re-shaping nonprofit culture from within...

ORDER NOW

Reading The Ultimate  Insider’s Guide to Winning Foundation Grants is like peeking at someone’s  secret diary or personal email.  You feel  guilty.  This is privileged information.
Only in this case Martin Teitel WANTS to reveal everything  to you. A
 long-time foundation CEO, he’s fed up with the smoke and mirrors of  
grant seeking. Ultimate Insider's Guide to Winning Foundation Grants

Reading The Ultimate Insider’s Guide to Winning Foundation Grants is like peeking at someone’s secret diary or personal email. You feel guilty. This is privileged information. Only in this case Martin Teitel WANTS to reveal everything to you. A long-time foundation CEO, he’s fed up with the smoke and mirrors of...

ORDER NOW

 

COMMENTS

Click here to leave a comment...
Comment *
Most Recent Comments: