Why your coins shipped via FedEx and UPS get delivered by USPS
derryb
Posts: 37,672 ✭✭✭✭✭
"An April analysis from Citigroup estimates that if costs were fairly allocated, on average parcels would cost $1.46 more to deliver." Amazon appears to be the biggest benefactor.
No Way Out: Stimulus and Money Printing Are the Only Path Left
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It's all about contracts...and them (FedEx, UPS, DHL, etc...) not wanting to go down to the lowest level of delivery when the USPS does it every day...IMO.
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SmartPost..lol ..The US Post office money earned to deliver a box ...little over a dollar ....FedEx,UPS keeps the rest ...
Shipper saves
If I ran the PO, I would immediately raise first class stall to $1.00 and renegotiate contracts with UPS and FedEx. Increase rates by 50% across the board. If they don't like it, fine, build your OWN last mile infrastructure.
And I would build a lot more PO boxes and lower the rent on them to encourage more folks to use them.
PO is already coming to your house. Cost them next to nothing to throw in a box. Does, however, delay you getting the box.
No Way Out: Stimulus and Money Printing Are the Only Path Left
" I just shipped my pants ". My favorite K-mart commercial.
``https://ebay.us/m/KxolR5
I had to look that one up...we don't have Kmart in OK.
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We may not have K-Mart in the rest of the country the way it's going...
I rarely order from Amazon these days (maybe a single order every other month), but I'd guess 3 of 4 packages are delivered by Amazon themselves (many times on a Sunday).
Amazon delivery, by whatever service, is hard to beat.... fast, very fast. Cheers, RickO
I still scratch my head wondering how the postal circus can deliver items from China to me that cost less than the minimal amount of postage that I have to buy when sending a 1oz package w/tracking down the street.
unless you live in Alaska!
I did not know that.... they are super fast in the mountains of NYS....Cheers, RickO
When I was a manager with Amazon, I shipped 4000 +/- packages per day, and a lot of them went Smart Post, where FedEx picked them up, shipped them across them country, or even the world, and let the post office have the last piece of the delivery.
Focus on who does what the best. The post office NEVER handled packages in bulk for long distances well, and FedEx was not built to go door to door.
I am sure the incremental cost for the post office, delivering presorted packages, is minor, so it is almost all "free" revenue, whereas FedEx saves a bundle.
What amazes me is that BOTH together are CHEAPER than either one. For example, I was shipping a package today, from Texas to Washington. FedEx was $17+, post office was $19, but Smart Post was $12.
Someday, the post office is going to need to relook at their model. I'm sure that it is built on tons of 1st class stamped letters, with some packages, and junk mail was a virtual freebie, plus who decided books, etc. (heavy dudes) deserved cheap rates. However, with 1st class almost gone, most of the mail I receive is junk.
I rarely order from Amazon these days (maybe a single order every other month), but I'd guess 3 of 4 packages are delivered by Amazon themselves (many times on a Sunday).
Amazon uses contractors to deliver their packages.
Amazon uses contractors to deliver their packages.
Probably not for too long.........Amazon Airlines? Prime Air? I wonder when they will place their 777F order?
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That's why I think they just need to raise the first class letter to $1.00 (still a bargain) and renegotiate all the final mile rates. Raise them 50% and USPS could be solvent in a short time. It would still be cheaper than building another final mile system.
USPS would be solvent now if they weren't required by law to pre-fund retirements 50 years in advance. No other company does this.
AS far as "the last mile", the USPS is required by law to serve every street, every resident, six days a week. It's a win-win for the USPS, FedEx, UPS, and DHL.
Amazon has warehouses all over the US. They themselves deliver packages every day to local post offices for delivery that day and by agreement, the USPS also delivers Amazon packages on Sunday.
Nope. The last mile mandate is important to the US. Look at a map and figure out how much of the country (not population) is say 2 hours outside of a major city. It's a different world out there and enough senators have parts of their state that qualifies to keep the USPS in some kind of role.
Could it get very expensive? Sure... the USPS as a quasi-private company is also supposed to break even.
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