Postal Service Hits Gains Among Losses, Can Use Same-Day Delivery

The US Postal Service has had its’ share of challenges in the recent years. However, there are some positive signs in the midst of the heavy drought. This past Friday the agency reported a $740 million loss in the three months up to June 30. It is a large figure, yet it is far less than what it loss in 2012. The USPS reported an overwhelming $5.2 billion loss last year. What is being found is many customers are not using first-class mail like they use to. Many bills are being paid online and the increase in technology is creating more convenient ways to handle everyday business.

One of the issues fueling the fire is the Postal Service health care benefits for future retirees, which is a pre-fund requirement by the US Government. These are yearly payments. The USPS currently owes $5.6 billion to fund these health care costs. This is actually only half of what the agency owed last year, which is due to the company withholding its’ 2011 payment. This year’s payment is due September 30th and the Postal Service is expected to default again. It has also depleted its’ $15 billion taxpayer loan that was given to assist with its’ debt.

The USPS needs some relief. It has attempted again and again for Congress to release the yearly health care benefit requirement to stop the losses. The agency also is requesting to end Saturday delivery of letters. Postal Service CFO Joe Corbett stated in the report, "Without comprehensive postal reform legislation signed into law, our hands are tied and we expect multi-billion dollar annual losses to continue". Without the pre-fund healthcare benefits, the USPS would have generated a $660 million profit in the third quarter this year. Not only is this looming, but its’ workers’ compensation benefits are due in October, which can affect its’ ability to pay its’ operational bills.

The pursuit for reform is not the only strategy the US Postal Service is engaging in to make a comeback. It knows it will require innovation and stepping into new business waters to really thrive again. The agency has launched a new service to compete will the demand for faster and more convenient mail deliveries. It has launched Metro Post, which offers same-day delivery. It is currently being tested in San Francisco. Online business is rises annually at 17% and many companies are aware this is a avenue for growth also. This is a great step for the Postal Service, following the likes of companies such as Wal-Mart, eBay, Google, Macy’s, and others seeking how to meet online demand via same-day delivery.

The USPS does appear to be going in the right direction, especially when it comes to same-day delivery. This is the future of any type of delivery that involves small packages and envelopes that customer need on a daily basis. Same-day couriers such as A-1 Express is able to assist any customers with a same-day delivery solution and deliver fast. The Postal Service can partner with the Portland Courier and become more competitive with all its’ deliveries.

Reference: 8.9.13, CNN Money, Jennifer Liberto, Postal Service loses less, but cash crunch looms

Amazon Offers Free Shipping Through Quidsi, Will Same-Day Delivery Become An Option?

There is no heavy-hitter so far that has come to match Amazon in the e-retail industry. They are the world's largest internet retailer and one reason is that they have an effective shipping program, namely Amazon Prime. Now, a company it owns, Quidsi Incorporated, is set to follow suit and implements its' own shipping program this year.

Quidsi Incorporated has just launched its' very own shipping program which offers its' customers the option of two-day deliveries reported Internet Retailer. The new shipping program is free, however, Quidsi will eventually charge an annual fee. Shoppers can sign up for a free three-month trial with a company code at checkout. More details about the Quidsi shipping program are not being disclosed, stated a spokeswoman for the company in the report, since it is described as being in pilot mode right now. The program applies to shopping across all of their 10 e-commerce sites, such as Diapers.com, Wag.com and Look.com.

“We will send you special insider deals every week,” Quidsi promises on its sites. There is no minimum purchase required to receive the free two-day shipping for the program. For shoppers not participated in the program, they can still receive free two-day shipping for a minimum purchase of $35. Amazon Prime has an annual membership fee of $79, for which customers receive two-day shipping on all orders and access to thousands of TV shows and films. With Quidsi, Amazon shows itself as on the cutting edge of e-retail and will continue to pursue major growth.

For the first quarter of 2013, growth did slow down for the online giant. Amazon experienced 22% growth in the first quarter, opposed to 36% growth in the first quarter last year. Inspite of the lower revenue, their profit margins did increase and one of the reasons was lower shipping expenses. Therefore, the shipping aspect of Amazon's business is a major factor in the outcome of its' future growth. It is clear with what the company is implementing with Quidsi, that a number of steps are being taken to make shipping their products efficient, easy and profitable.

Amazon continues to grow relative to their distribution centers as well, which helps their shipping strategy. Currently, Amazon has 46 warehouses in the US. They are reported to be building more and should have 54 distribution centers this year. With the number of distribution centers being built throughout the country, many experts believe Amazon is gearing up to move beyond 2-day shipping, to offering same-day delivery to its' customers. Same-day delivery is being testing by a number of retailers nationwide, such as Wal-Mart, eBay, Target, Macy's, and others. Online business has an opportunity to offer a faster delivery service than 2-day delivery and shoppers can have their products at their doorstep within hours. It could become a shipping offer by Amazon.

Same-day courier services like A-1 Express can assist e-retailers, such as Amazon, with shipping and delivery logistics solutions nationwide. This Portland Courier is able to perform same-day delivery to customers that are local to retail company distribution centers, stores, and warehouses. As e-commerce continues at develop, an optimal delivery system by a same-day courier will be just what e-retailers and online shoppers are looking for, especially for return shipments.

Reference: 5.9.13, Internet Retailer, Thad Reuter, More free shipping from Amazon