The Midwest is the nation’s “breadbasket.” New England has its Patriots. Appalachia loves its bluegrass music. And it never rains in Southern California. We all associate certain things with different regions of the country. Now, it seems, one of those things is mail volume.
Are all mailboxes equal? Not when it comes to advertising mail, which seems to invoke three critical factors normally associated with real estate – location, location, location.
It costs the U.S. Postal Service less to deliver mail to curbside mailboxes or neighborhood cluster boxes than to your door. That’s why there’s been talk of possibly eliminating door-to-door delivery as Canada Post has recently announced. But the move could cut more than costs; it could also cut the effectiveness of ad mail, which provides about $16 billion of revenue annually to the Postal Service.
Most people probably don’t know what a universal service obligation is, much less that the Postal Service is bound by one. But a USO, as it’s commonly called, is essential to ensuring that everyone receives the mail service they need. And the Postal Service’s USO is long overdue for updating and clarification, as you can see in our new white paper, Guiding Principles for a New Universal Service Obligation.
As we celebrate our sixth year of blogging, you might think we’ve covered it all. Surely we’ve hit on every postal topic and angle there is, right? Well apparently not. We have a backlog of issues we want to share and people keep giving us excellent insights and feedback.
Pretty soon, Americans will have no reason to leave their homes. We can order everything online and have it delivered to our doors – even groceries. That’s good news for package delivery companies, if not for Americans’ Vitamin D intake.
What should the postal vehicle of the future look like? The U.S. Postal Service recently put that question to its carriers and vehicle maintenance personnel and is currently reviewing the feedback. It’s an important question because the delivery fleet is aging and the Postal Service needs to quickly replace it. In fact, our recent audit on the topic found the current fleet can only meet delivery needs through fiscal year 2017 – and that assumes no unexpected decrease in vehicle inventory or increase in the number of motorized routes.
The 2013 holiday season turned out to be a particularly eventful one for e-tailers and the shippers that deliver all those packages to your door.
Factors like fewer than average shopping days between Thanksgiving and Christmas and an increasing comfort level with online buying helped push holiday e-commerce up significantly. In fact, demand exceeded expectations and stressed shippers’ capacity, causing some late deliveries of their goods.
Today’s consumers are a demanding bunch – expecting to get what they want precisely when and where they want it.
These changing expectations are putting the pressure on both brick and mortar retailers as well as online retailers. Pressure grows to deliver goods faster, cheaper, and with more flexibility. Now, customers expect free shipping and overnight delivery or, in some cities, same-day delivery.
It seems same-day delivery might not be fast enough for some. Amazon.com is toying with the idea of delivering packages within 30 minutes – via drone.
Imitation is the sincerest form of flattery, they say. Maybe so. It’s just not usually FedEx that is doing the imitating or the flattering. But with its new “simple and predictable” flat rate shipping option, FedEx seems to be trying to look like the U.S. Postal Service in one particular way.
The FedEx One Rate bears more than passing resemblance to the popular Priority Mail Flat Rate, suggesting FedEx is shifting strategy to become more aggressive in the light-weight retail package segment it once largely ceded to the Postal Service.