With Amazon planning to start Sunday deliveries with the U.S. Postal Service, the future of the postal service is starting to look more promising. The announcement came on Monday on behalf of Amazon that the company is planning to make deliveries with government truck drivers and office workers.
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The U.S. Postal Service has been experiencing severe losses in the past few years and Internet is said to be the root cause of this limbo. In September 2013, there were discussions about the increase in mailing charges without any successful consensus. One of the outcomes of the meeting was to promote business mailing to recoup the huge losses of the organization. With Amazon’s announcement, it is definitely a relief for the postal department.
Sunday deliveries without any extra charges
The postal service will deliver Sunday packages at regular charges for the first time. Prior to this announcement, a shipper would need to choose Express Mail service and pay additional charges for delivery on Sunday. This initiative will start with immediate effect in New York and Los Angeles. The Postal Service is planning to cover Washington and rest of the nation within the next year. This move is expected to help the postal service in its financial recovery.
How it will help the U.S. Postal Service?
According to the statement of Postmaster General, Patrick R. Donahoe, the postal department is happy to offer shipping services to shippers like Amazon on Sundays considering the increase in online shopping. As per the records, USPS has lost its mail volume by 50 percent in the last decade because of the increasing use of internet for bill payments and communication purposes.
The arrangement with Amazon can help USPS in becoming a competitive business mailer. With an army of 500,000 employees and 31,000 post offices throughout the country, every shipper would be looking forward to choose USPS after Amazon. The USPS department has suffered a loss of $21 billion in the past two years and this is expected to come down with similar alliances.
The Postal department is planning to use city carrier assistants and rural carrier associates for Sunday deliveries. The department is willing to increase the staff provided a high mail volume is received in future.
How Amazon will benefit with the alliance?
For years, Amazon has been trying to create an online shopping experience similar to the bricks-and-mortar stores. Until now, the additional charges for Sunday deliveries by all major postal services including FedEx, United Parcel Services, and USPS made it difficult for the online store to deliver goods in a cost-efficient manner.
Other major rivals such as eBay, Google, and Wal-Mart are trying to implement the same-day delivery model in major cities. The Amazon Fresh project, which makes same day delivery in Seattle and Los Angeles, is expected to expand nationwide within a few years.
This alliance is expected to help both the partners in improving their revenue reports in the upcoming years!