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EcommerceBytes-NewsFlash, Number 2507 - March 25, 2011 - ISSN 1539-5065    2 of 3

PRC Issues Opinion on USPS Request to Move to 5-Day Delivery

By Ina Steiner
EcommerceBytes.com
March 25, 2011




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The Postal Regulatory Commission (PRC) disagrees over how much the USPS could save by reducing its delivery schedule down from its current Monday through Saturday schedule. The agency issued its advisory opinion Thursday on the U.S. Postal Service's proposal to move to a five-day delivery schedule.

The PRC estimated the annual net savings from moving to a 5-day delivery scehdule at $1.7 billion, below the Postal Service's estimate of $3.1 billion. The commission also said that full savings in either case would likely not be achieved until year three after implementation.

The planned changes would cause an average of 25 percent of First-Class and Priority mail to be delayed by two days, and customers in rural, remote, and non-contiguous areas could be particularly affected by the Postal Service's plans. The Commission said it received significant input from rural America and traveled to South Dakota and Wyoming to meet directly with rural customers and community leaders.

In a press statement about the report, the USPS stated, "The Commission's opinion is advisory only and therefore, is not a final determination on the merits of our proposal. We remain convinced of our findings. As such, we will also continue to press our case with the Congress on this matter."

The USPS also issued a press release on Thursday announcing "a newly redesigned Postal Service," describing it as one that is "better positioned for growth, reflects further alignment within the organization to achieve core business strategies and, when fully implemented, will help realize approximately $750 million of annual cost savings."

About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

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