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USPS: A Package Delivery Powerhouse for Small Businesses

 

The USPS is a Package Delivery Powerhouse for Small Businesses.

 

When it comes to choosing the best shipping service for small businesses, you cannot afford to ignore the United States Postal Service (USPS), which delivered a record 524 million packages in December 2014.

In 2013, the USPS had shipped 18 percent less packages. Surprisingly, on December 22, 2014, the shipping service broke all previous records to deliver 28 million in a single day, ensuring timely delivery of packages arriving for Christmas. But most times, the USPS is considered as an afterthought when people talk about shipping services.

However, the fact is that the postal service is no less than package delivery associated with UPS and FedEx. From a humble mail carrier, the USPS has transformed itself into a shipping powerhouse, offering small businesses a reliable yet cost-effective shipping service. Any business deciding to close eyes on this transformation risks losing money in the long run. The need of the hour is to adopt a shopping mix, so that you don’t have to depend on just one package delivery service, especially during the holidays.

 

2015: Year of Innovation For the United States Postal Service

This year is expected to be a ground-breaking year for the postal service, with strong competition both from other package delivery services and tech disruptors. Google and Amazon have already entered the delivery market in 2014, with their own delivery fleets. This certainly pushes the postal service to be more innovative.

The advent of Google Express has raised the competition in the shipping market, allowing people to make a purchase from local retailers and receive the product on the same day. Google Express has expanded to five new regions and seven metropolitan markets.

In this package delivery market, Amazon is not to be left behind. The eCommerce giant was in the news in 2014 for testing its own last mile delivery service, giving the company greater control over the shopping experience.

Thus the entry of Google and Amazon in the shipping service market makes it even more challenging for the US Postal Service to enhance its resources and stay competitive. The USPS is doing all the right things to stay in the package delivery market. It has introduced GPS-enabled scan guns in its vehicles to provide real-time updates on the status of shipment in the cloud. This technology enables the postal service to locate a carrier’s location. Not only this, with GPS tracking, the shipper can decide whether the vehicle would be available for further pickups and drop-offs.

  • The USPS has started employing dynamic routing to decide the most efficient route for package deliveries. This innovative technology will help in better package tracking and enable it to provide improved grocery delivery too.
  • The USPS is also changing its focus to become competitive in services and pricing. In September 2014, the postal service reduced its price for Priority Mail in order to extend the benefits of affordable pricing to shipments weighing 40 pounds.
  • Further, the USPS is likely to be seen as a cost-effective alternative to UPS and FedEx for large, lightweight packages, which have expanded into dimensional weight pricing.

According to a survey conducted by Endicia.com in December 2014, 80 percent of the surveyed businesses showed preference for USPS for larger, lightweight shipments after the introduction of dimensional weight pricing by UPS and FedEx.

 

Bottom Line

The U.S. Postal Service delivery services seem like a low-cost alternative that promises to provide competitive advantage to businesses. Savvy businesses will want to keep an eye on the USPS as it is as capable as FedEx and UPS when it comes to package delivery and it has a proven track record.

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