The Decline of USPS in the Age of Online Shopping: Causes and Consequences

One topic that is often overlooked in discussions about the state of the United States Postal Service (USPS) is the strategic brilliance of Jeff Bezos and his team at Amazon. Amazon has significantly supplemented its delivery prowess by acquiring 70,000 delivery trucks. With these trucks, Amazon delivers around 150 packages per day, totaling 10.5 million packages across the country, which used to be handled mostly by USPS and UPS/FedEx. If each package is valued at $5 in shipping costs, Amazon saves approximately $52.5 million daily. However, payroll is a significant factor, estimated at $10 million per day for 10,000 drivers working 10 hours each. Fuel expenditure is another substantial cost, which might add an additional $10 million per day. After accounting for these expenses, Amazon still realizes a net profit of $32 million per day from package deliveries, avoiding paying shipping fees to traditional carriers.

Causes of USPS Decline

From a customer-centric viewpoint, the decline of USPS has two primary facets: reduced service and blunted customer contribution. Service cuts, as seen during the pandemic, have been considerable. USPS no longer makes the multiple daily pickup stops at UPS stores, FedEx locations, and other retail package centers. Instead, the number of delivery stops has been significantly reduced. In my community, for example, only one out of several post offices accepts packages for drop-offs. This functional reduction has left many postal clerks idle, prompting the question of why they can't step in to assist with the burgeoning package volumes.

Service Cuts and Inefficiencies

To address the decline, USPS has cut services, which means fewer post offices and stations are accepting packages. In my city, we've seen a drastic reduction to a single post office for package acceptance, which underscores the need for USPS to adapt to the modern wave of online shopping.

If the customers are doing less work, why aren't USPS employees stepping up to the plate? The answer lies in inefficiency, poor management, and a lack of motivation. The service provided is often subpar, which is alarming given USPS's critical role in the supply chain of online businesses. I, as an online seller, rely heavily on USPS to ensure the swift delivery of my products. However, my trust in "priority mail" is severely tested when my packages take nearly a week to reach customers after shipping on a Monday.

Case Studies of USPS Inefficiency

For instance, I mailed three packages from the main PO on Monday. By Monday night, they were all at the regional PO. By Wednesday, two of them were still sitting at the regional PO, far from their destinations. The third package, which should have been delivered halfway across the country by then, was still making its rounds. To add insult to injury, a package that left Miami for Virginia on July 27 had an unnecessary journey to Minneapolis, St. Paul, and back to Miami. By August 5, it was still in Miami while USPS sorted out the issue, rendering the "two-day service" a joke. The irony is not limited to these individual cases; the basic premise of Amazon's success rests on efficient delivery, which USPS struggles to match.

Conclusion

The decline of USPS in the face of the surging online shopping market is a multifaceted issue. While Jeff Bezos's strategic moves have bolstered Amazon's delivery prowess, USPS remains mired in a cycle of inefficiency. Poor management, lack of motivation, and a strained workforce contribute to the ongoing problems. To rectify these issues, USPS needs to innovate, improve its service, and address the underlying causes. The future of postal services, especially in the digital age, depends on these changes.