It’s no secret what the advent of digital technology has done to mail volume, particularly First-Class Mail. But there’s an emerging digital technology catching hold that could be a boon to the U.S. Postal Service. It’s called 3D printing, and it’s expected to increase the number of lightweight parcels, a segment of the parcel market where the Postal Service excels.
Maybe this is the first time you’ve heard the term “collaborative consumption,” but even if it’s not, chances are you’ll be hearing it a lot more. It refers to an economic model based on renting, lending, and sharing goods instead of buying them. In fact, not long ago, Time magazine listed it as one of “10 Ideas That Will Change the World.”
Dim weight. Sounds like something you might call your not-so-smart cousin. It’s actually a way to price parcels based primarily on how much space they take up during transport and delivery.
FedEx is the first major carrier to announce plans to charge prices based on the dimensional weight of all its ground shipments. Retailers and other shippers are bracing for a nasty hike in shipping costs come January 2015, when the FedEx changes take effect.
Postal customers took fewer trips to the Post Office this past holiday season but that doesn’t mean they spent less on postal products. They just conducted more business through alternative channels, such as online at USPS.com and self-service kiosks. Over the 2013 holiday season, transactions at brick-and-mortar post offices were down 8 percent compared to last year, but transactions through alternative access were up 17 percent, postal officials reported.
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.
As online shopping has become the norm for many Americans, it has brought operational changes to both brick-and-mortar retailers and online retailers. Shipping costs are now a major consideration for companies. Retailers are working to control their shipping costs as their ebusiness grows, with the traditional retailers relying on their extensive network of stores to reduce shipping costs. Instead of shipping goods from centralized warehouses to far-flung customers, major retailers, such as Wal-Mart, Best Buy, and Gap Inc., deliver from stores close to their customers whenever possible.
Global e-commerce sales topped $1 trillion for the first time in 2012 and they are expected to grow another 19 percent this year, according to data from research firm eMarketer.com. While North America leads the world in online sales, Asia is expected to take the mantle by the end of this year. China drives Asia’s growth and this year it should surpass Japan as the world’s second largest e-commerce behind the United States and its $385 billion in online sales.
This holiday season many of us will find ourselves rushing from one errand to the next, often visiting a variety of stores to accomplish all of our tasks. Wouldn’t “one-stop shopping” be easier? Wouldn’t it be nice to get everything from shopping to wrapping to shipping taken care of in a single trip? Locations offering a multitude of services potentially increase foot traffic because of the convenience they offer. They also create opportunities for the company to sell more products and services to its customers.
A 100-year old temperance-era law prohibits the Postal Service from shipping alcohol and benefiting from the growth in online purchases of wine, beer, and other spirits. As states have loosened their restrictions on inter-state alcohol shipments, FedEx and UPS have seized this burgeoning opportunity. The Postal Service needs to secure new sources of revenue in an era of declining mail volume. Shipping of alcohol could create an additional revenue stream, while capitalizing on the Postal Service’s strength in last-mile delivery.