The USPS published a plan on Tuesday to cope with a declining volume of mail, and it could have a significant impact on ecommerce. The USPS projected a $238 billion shortfall in 2020 due to "unprecedented" volume declines. A possible move to a 5-day delivery schedule and likely fee changes could mean that online sellers who currently use the U.S. Postal Service might have to change the way they do business to satisfy consumer expectations.
Postmaster General John E. Potter's plan, called "Ensuring a Viable Postal Service for America," includes cost cutting, increased productivity, and an array of legislative and regulatory changes that he said were necessary to maintain a viable United States Postal Service.
The self-supporting government enterprise said it projects mail volume to fall from 177 billion in 2009 to 150 billion in 2020. According to the report, "That represents a 37 percent decline in First-Class Mail alone. Revenue contributed by First-Class Mail will plummet from 51 percent today to about 35 percent in 2020."
The new plan calls for adjusting delivery days "to better reflect current mail volumes and customer habits." The USPS said survey data shows the public favors 5-day deliver over using taxpayer funds and other alternatives. The plan also calls for providing services at locations that are more convenient to customers, such as grocery stores, pharmacies, retail centers, and office supply stores: "Increase and enhance customer access through partnerships, self-service kiosks and a world-class Website."
The President of the 300,000-member National Association of Letter Carriers (NALC) opposed the proposal in a statement on Tuesday. Fredric Rolando said, "I do not believe that weakening our commitment of six-day service to the public will enhance the long-term position of the Postal Service as a critical element in our nation's economic infrastructure. In view of the January report released by the postal Inspector General that showed that the USPS was overcharged by $75 billion for postal pension costs, Congress instead should take immediate steps to correct the error."
You may quote up to 50 words of any article on the condition that you attribute the article to
EcommerceBytes.com and either link to the original article or to www.EcommerceBytes.com. All other use is prohibited.
Have a question about buying or selling online? Want to get marketing or technical advice? AuctionBytes Discussion Forums are the place to come to get answers to your questions and get advice! Great tips - a refreshing change!
The USPS published a plan on Tuesday to cope with a declining volume of mail, and it could have a significant impact on ecommerce. The USPS projected a $238 billion shortfall in 2020 due to "unprecedented" volume declines. A possible move to a 5-day delivery schedule and likely fee changes could mean that online sellers who currently use the U.S. Postal Service might have to change the way they do business to satisfy consumer expectations.