Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sat May 7 2022 23:06:03

Six-day Delivery Pointless if Mailers Can't Afford It

By: Ina Steiner

Sponsored Link

What good is 6-day delivery of the mail if sellers can't afford it? USPS Postmaster General Louis DeJoy told the mailing industry to prepare for rate increases at an uncomfortable rate - and as far as online sellers are concerned, shipping costs are already uncomfortably high.

The Postmaster General (PMG) specifically referred to market dominant products (which includes First Class Mail, Media Mail, and the cost of a stamp) during his remarks at the Postal Service Board of Governors meeting on Thursday, and he called previous price caps that had been in place for 10 years a "defective pricing model."

Historically, the Postal Service was restricted to raising market-dominant rates tied to the rate of inflation. In 2020, the Postal Regulatory Commission (PRC) changed the rules, tying price caps to what the regulatory commission identified as USPS' two biggest cost drivers: fewer pieces of mail going to more addresses; and mandatory payments the agency must make toward benefits for future retirees, according to Government Executive

But the Postal Service Reform Act of 2022 eliminated the USPS' requirement to prefund retiree health benefits, yet PMG DeJoy made clear Thursday he's determined to keep raising rates at a rapid clip. (Paradoxically, that could accelerate mail volume declines, leading to ever higher postage rates.)

The Alliance of Nonprofit Mailers and Association for Postal Commerce filed a petition with the PRC last month, "urging the regulator to reconsider its rate system for USPS, given that Congress has passed the Postal Service Reform Act." In their filing, they said, "the problem has changed; so must the solution."

The filing was prescient when it said: "as long as the Postal Service has access to additional rate authority and maintains market power over its market dominant services, one can expect the Postal Service to use all the rate authority it has been provided."

"It falls to the Commission, as regulator, to reduce the available authority to reflect these changed conditions," they pleaded.

Bipartisan lawmakers were so concerned when passing this year's reform bill about 6-day mail delivery, they may have overlooked a bigger issue - the cost of mail for consumers and businesses.

Some reaction to the Postmaster General's remarks on Twitter:

postalnews (@postalnews): 
"USPS Is Promising More Severe Price Hikes Even As Revenues Grow by Nearly $1B"

Save the Post Office (@savethepo): 
"This article says parcel volumes fell from 1.87 billion to 1.77 billion "due to the impact of recently implemented shipping rate increases, the Postal Service said." But that's not in the USPS press release. USPS would never say that."

Comments (39) | Leave Comment | Permalink
Readers Comments

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

by: Mbrj201 This user has validated their user name.

Sat May 7 23:28:57 2022

DeJoy will ruin the USPS.

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

by: GetAGrip This user has validated their user name.

Sun May 8 05:59:38 2022

They will soon be unimportant for mailing.   They keep raising prices and the service keeps going down.  What used to take 3 days now takes 5 days and has a great chance of being delivered to the wrong address.  As far as I'm concerned they could stop delivery to my house forever.  I get nothing but junk mail.  Everything I do is on line like a lot of people.  I check the mail box when I think of it and the only thing in there is junk letters asking for donations to their scams.

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

This user has validated their user name. by: toolguy

Sun May 8 08:34:15 2022

A thing called "capitalism" will work everything out.

If shipping gets too expensive buyers will return to brick & mortar.

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

This user has validated their user name. by: The End

Sun May 8 09:03:41 2022

I SAID :
Looks like they've found a way to hobble America.
That's what this is.
Right in front of our eyes.

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

This user has validated their user name. by: The End

Sun May 8 09:08:54 2022

toolguy is absolutely correct.
Right 'Round 360 degrees.
Where I live, stores have been empty for so long they need to be torn down and replaced.
It's a graveyard of empty malls and strip malls.
It's all busy 6 lane highways with commercial graveyards as far as the eye can see....
Stores will have to be built on the outskirts of residential areas...then the kids can walk to work.....their learning curve will be tremendous....

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

This user has validated their user name. by: iheartjacksparrow

Sun May 8 10:12:18 2022

Online selling is keeping the USPS afloat, and that's the very segment that DeJoy wants to price out of business.  

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

by: terry55 This user has validated their user name.

Sun May 8 15:27:10 2022

WOW, this idiot just doesn't get it. Raising postage rates WILL NOT increase revenue. The higher it goes the less they get, my mail lady is already running 2 hrs earlier now because less packages.
Easy example which domestic packages will follow is international rates, 10 yrs ago I sold all over the world, almost every country, 1st class rates were around $3. International rate doubled to $6, a year or 2 later jumped to $12 for 4 oz and $18 for 8 oz. My international sales dropped 90%, I got alot of angry message about doubling my shipping which I let them know I had no choice.
 I ended international sales back in 2018, wasn't selling enough to cover any lost packages. This will happen with my items now, cost more to ship then the what a person can buy at the store, I've already sell half what I did 5 years ago.
I did ask my mail lady about going to 5 days a week, if it would be easier on her. She answered no, because Mondays would be a nightmare, she'd have Friday, Saturday and Sundays mail to deliver on Monday.
USPS is already losing a bunch of packages because of outrageous surcharges and amazon now doing more of their own deliveries.  

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

by: the decline of civilization This user has validated their user name.

Sun May 8 22:01:59 2022

The US Government punishes small business instead of enabling them. USPS is destroying American small business and placing the average citizen further into debt. Running one's own business should be encouraged and not left to the rich. Again, it's wage slavery at its finest. The USPS keeps proclaiming their deliveries are quicker yet fail to mention their mailpiece throughput has drastically declined, partially due to their exorbitant price changes. Of course your delivers are faster (no, they really aren't) when you're sending less mail. Doesn't take a rocket scientist.

I don't know enough about the workings of the USPS Board of Governors and the processes, but removing DeJoy should've been prioritized and the proper people ousted in order to replace him. The fact he's allowed to continue especially after the fascist antics of removing mail sorting equipment shortly before the election leaves me with no hope for this country. At this point all "parties" are complicit in these actions because nobody is doing anything about it.

All this rambling aside, eBay, Mercari, Etsy and so on should be very concerned. WIth their plummeting customer bases (and stocks at an alltime low) this is only going to make matters worse. Their days are very numbered. Fact is, they're not concerned. eBay keeps implementing horrible design decisions (UI/UX and algorithmic wise) which are only hindering their services to buyers and sellers. It's the perfect storm and the ship is sinking,

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

by: Plain1 This user has validated their user name.

Sun May 8 23:17:54 2022

The postal service was created as a service to the citizens and was subsidized, never meant to be a for profit endeavor. It never should have been taken away from congress. It should have stayed where it was and been subsidized by the federal government.
I remember when shipping overseas was not that expensive at all, now it's crazy.

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

by: Bubbles This user has validated their user name.

Sun May 8 23:24:43 2022

The same thing is happening in Australia.......

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

by: Chicago48 This user has validated their user name.

Mon May 9 02:16:11 2022

I sell on AMZ and recently the UPS rates are about half the USPS rates, including the first class mail.  I don't know what AMZ did to get those rates, but other platforms need to do it.

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

by: JohnGermaine This user has validated their user name.

Mon May 9 07:04:14 2022

DeJoy totally get it - he's invested in a competing business (XPO Logistics) and was hired to take the USPS down. He should never been hired in the first place and he knows that.  As in all others placed in jobs by "the previous guy" he was another sent to destroy.  Why he is still there is a mystery to all of us.  Rates need to be slashed in half - at least - since the mandate was lifted.

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

by: billly This user has validated their user name.

Mon May 9 07:51:33 2022

The lasting affect of voting grifter ''businessmen'' into office because you think they serve as role models who actually give a rats a** about the citizens they are tasked to represent. The smoke and mirrors that comprise the real inner workings of the US government become more apparent with each passing day. ''Great Again'' is the gift that keeps on giving.

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

by: Sierra This user has validated their user name.

Mon May 9 10:02:07 2022

@Mbrj201 - DeJoy HAS ruined the USPS!

@toolguy - If buyers return to brick & mortar stores, that will really suck for millions of online sellers! E-commerce is such a big business that USPS shouldn't be allowed to ruin it!

@terry55 - That was my experience too. I've been selling online since 1998 however, when USPS international rates took off like a rocket, my international sales fell like the proverbial lead balloon. :-( I didn't receive angry messages about rate increases though, international shoppers simply stopped buying. There was a time when I could ship to Canada (First Class International, or whatever it was called at the time) for less than I could send the same item to the U.S. East Coast via Priority Mail (these packages were over 1 pound so HAD to ship Priority in the U.S., but could ship First Class International because that weight limit was 4 pounds at the time!).

@the decline of civilization - I thought the proper people HAVE been appointed to the PRC who would be able to get DeJoy's azz out of there??? If this is correct, WTF is taking so long???
https://www.prc.gov/leadership ... looks like 3 to 2 so they should be able to get the job done! Also, re: eBay design, etc. I haaaate the new listing format. I tried it and immediately went back! I've given eBay feedback about it several times. I especially love the CURRENT image editor, which wasn't the same in the new format. GRRR!!!!

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

by: NYSteve This user has validated their user name.

Mon May 9 10:12:58 2022

'a thing called capitalism' will work things out'

rotfl, if not crying, oh, so that explains the income 'equality' in this country, too

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

by: NYSteve This user has validated their user name.

Mon May 9 10:14:58 2022

@Mbrj201 - that is EXACTLY what he is there for, then the whole populace will deal directly with his delivery service , XPO logistics.

does that make any sense? then why hasnt anyone put a stop to that yet?

CONFLICT OF INTEREST- send the guy packing!

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

by: mazelgirl This user has validated their user name.

Mon May 9 10:16:23 2022

I just wrote to the White House after reading this.  President Biden is supposed to be appointing people to some postal commission who can delete DeJoy.  Not sure if writing will help but at least I feel I did something https://www.whitehouse.gov/get-involved/write-or-call/

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

by: NYSteve This user has validated their user name.

Mon May 9 10:19:27 2022

@mazelgirl

current update- the dems have a majority on that commission, now, but the 'D' chairmen is enamored (aka F'en blind dupe) with Duh Joy

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

by: Shanna This user has validated their user name.

Mon May 9 10:46:30 2022

The lasting affect of voting grifter ''career politician'' into office because you think they serve as role models who actually give a rats a** about the citizens they are tasked to represent. The smoke and mirrors that comprise the real inner workings of the US government become more apparent with each passing day. Remember, 10% for the Big Guy.

Perminate Link for Six-day Delivery Pointless if Mailers Can't Afford It   Six-day Delivery Pointless if Mailers Can't Afford It

by: NYSteve This user has validated their user name.

Mon May 9 10:50:36 2022

De  Joy is a direct product of pols trying to privatize gov't agencies in the guise of 'you know you hate red tape and govt inefficiency', we will replace it with capitalists who will make it an efficient money making machine (at higher costs to you though)
(drain the swamp!)

Click to view more comments
1 2  [Next Page]


Login is required to post comments.
To sign in to leave a comment, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.