Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Wed May 6 2020 21:27:04

USPS Could Hike Rates Under New Leadership

By: Ina Steiner

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The US Postal Service is "under new management," which could ultimately lead to higher postage costs for online sellers.

The Board of Governors "unanimously" named Louis DeJoy the 75th Postmaster General - a week after David C. Williams resigned from the Board.

The Washington Post (owned by Amazon CEO Jeff Bezos) has the gory details of recent political jockeying. The pandemic has taken a financial toll on the USPS, but President Trump threatened to block a $10 billion line of credit approved as part of coronavirus legislation in March unless officials dramatically raised shipping prices on online retailers. The President publicly called the Postal Service a "joke" last month.

Louis DeJoy is a stalwart ally of the President's and comes from the private sector. He's set to start on June 15, 2020, taking over from Megan Brennan, who had announced her retirement last year.

The Chair of the Board of Governors Robert Duncan said in the USPS announcement, "Louis DeJoy understands the critical public service role of the United States Postal Service, and the urgent need to strengthen it for future generations. The Board appreciated Louis' depth of knowledge on the important issues facing the Postal Service and his desire to work with all of our stakeholders on preserving and protecting this essential institution."

The Washington Post also said the President could consider forcing the Postal Service to renegotiate terms with companies and its own union workforce.



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Perminate Link for USPS Could Hike Rates Under New Leadership   USPS Could Hike Rates Under New Leadership

by: ShortSeller This user has validated their user name.

Thu May 7 00:39:16 2020

Sort out the criminal crippling of the organization via the pension prefunding requirements, withdraw from the UPU and tax the hell out of China. Problem solved. Cost? $0.

Perminate Link for USPS Could Hike Rates Under New Leadership   USPS Could Hike Rates Under New Leadership

by: gyanarthi This user has validated their user name.
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Thu May 7 00:41:41 2020

Another reason to get rid of this president...

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by: Moonwishes This user has validated their user name.
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Thu May 7 00:43:50 2020

I do not consider the USPS a joke as it is one of my biggest allies in running my small business. What the presidents needs to understand is that many of us smaller online sellers do this to provide for our families without going on the dole. I spend thousands of dollars yearly for postage which is a whole lot more than the ~$10/year that I used to. Maybe Amazon is getting deals that raises Trumps ire but that doesn't mean that he should be taking it out on the small businesses. We provide a vital need to the people of the USA and other countries. My sales have taken off like crazy during this pandemic as I sell something that is not consider essential so the stores that sell them are not open. Over the years we have had this store, we have paid taxes on the profits and rather than getting handouts from the states we pay for our own groceries, utilities and housing. Would the president prefer that we quit and start getting hand-outs? Seems like we are already paying way too much for postage already and every raise that the PO makes we have to charge our customers for and then they will stop buying on line.  

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by: MichaelP This user has validated their user name.

Thu May 7 01:27:03 2020

The USPS first needs to get their @$$ in gear by improving the reliability of their service. Way too many missed tracking scans and lost or extremely late packages. These problems existed before the pandemic but now they have been magnified.

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by: ox-mix This user has validated their user name.

Thu May 7 01:49:54 2020

@MichaelP

My observations as well. I could have told Megan Brennan before she did her audit that the USPS was skipping/missing MANY scans during the delivery process. Not only are delivery scans being missed but some parcels show as never having arrived at or left a local or destination distribution center. The second major problem: completely and blatantly ignoring large red "Do Not Bend" labels plastered all over parcels and folding them in half before sticking them in my box. Clean up those two problems and as far as I'm concerned there are no real issues with the USPS. The scanning issue has me using UPS Ground much more for pricey shipments.

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by: Garcia This user has validated their user name.

Thu May 7 02:20:38 2020

The Post Office is being run into the ground with its prepaid pension obligation.  It can't make money if it has to keep doing that.  Let's hope this will be one of the changes made to keep the PO afloat. Then take care of the mess the post office has in delivering packages.

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by: COVID-19 This user has validated their user name.

Thu May 7 02:39:52 2020

The USPS is having severe delays in shipments because too many postal workers are hiding at home PRETENDING they have corona when they are actually just abusing Sick Day Leaves.  But they are teamsters, so they can't be fired.  The private couriers like UPS, FedEx are doing fine because they let their workers know that they are not indispensable.

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by: lancecorp This user has validated their user name.

Thu May 7 05:04:50 2020

The USPS actually loses money on most packages due to their deal with Amazon and why small businesses are hit with increase after increase. This is why Fed Ex wouldn't sign a contract with them again because it was bad for their business. I know several postal workers - and while many are hard working individuals - there are many that take advantage of the sick days. Every day I have to ask for tracking updates as at least 1/2 of my sales aren't moving. It took 10 days for a package to reach Canadian Customs - I'm only 20 minutes from the Canadian Border and could have driven it up there myself.  

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by: Chicago48 This user has validated their user name.

Thu May 7 06:08:15 2020

Small ecommerce sellers are screw*d.

Perminate Link for USPS Could Hike Rates Under New Leadership   USPS Could Hike Rates Under New Leadership

by: Chicago48 This user has validated their user name.

Thu May 7 06:10:08 2020

The USPS is having severe delays in shipments because too many postal workers are hiding at home PRETENDING they have corona when they are actually just abusing Sick Day Leaves.
^^
One thing I learned from talking to a postal worker is that they blow out their knees and have to go on disability - because ? - walking up and down steps of houses to put mail in the boxes.
I believe the newer homes built today cannot have boxes attached to the house above the steps and have to be street level.

Perminate Link for USPS Could Hike Rates Under New Leadership   USPS Could Hike Rates Under New Leadership

by: wrslss1222 This user has validated their user name.

Thu May 7 06:14:26 2020

From what i see at the Post Office that I am at everyday they are open is that there is a tremendous amount of waste.  Here are examples:  A TV was installed over 6 months ago which was supposed to advertise the Post Office products but they have not been able to get it to work.  6 Foot apart pins worn by the employees when signs could have been made on a computer.  The Post office advertising on TV.  Everyone knows the Post Office exists so the Post Office does not have to waste money advertising.  
A full audit of Post Office procedures and product/pricing needs to be done.

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by: eastwestphoto This user has validated their user name.

Thu May 7 06:20:43 2020

it took Fedex one week to transfer packages from Bethlehem,  to Allentown ,Pa. their 6 miles apart. USPS is far better!

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by: Chicago48 This user has validated their user name.

Thu May 7 07:21:56 2020

@eastwest, you must have shipped Fedex ground which is equal to USPS first class delivery.

Perminate Link for USPS Could Hike Rates Under New Leadership   USPS Could Hike Rates Under New Leadership

by: GotToGetOut This user has validated their user name.

Thu May 7 07:59:40 2020

I agree with President Trump.  It's absolutely ridiculous that the post office allows those small packets from China.  Someone can buy a $1 cable from China INCLUDING shipping when the lowest cost to ship an up to 4 oz. item in the U.S. is something like $2.70 plus the item!!  At one point, the post office raised their prices for these foreign packages but then shipments were doubled and each package was still a big loss so it actually made bigger losses!  The post office should be privatized.

As far as them increasing on-line prices, that would probably lead to a big drop in shipments and they would end up making even less.   Prices for my items from between 3 lbs. and 10 are often very close between USPS and Fedex and I would just compare and use Fedex most of the time.    

Perminate Link for USPS Could Hike Rates Under New Leadership   USPS Could Hike Rates Under New Leadership

by: FeelingFroggy This user has validated their user name.

Thu May 7 08:31:08 2020

HINT HINT Could lead to raising prices. HINT HINT
Sellers you have been warned. Hold on to your pants as the next increase is going to be the highest.
HINT HINT HINT
How stupid does the Post Office think the public is.
ANSWER. VERY

Perminate Link for USPS Could Hike Rates Under New Leadership   USPS Could Hike Rates Under New Leadership

by: spooky This user has validated their user name.

Thu May 7 10:08:18 2020

I worked at a main facility for 30 years most of that time as a front line supervisor. It is impossible to fire someone for non-performance of work. It is much worse that you could ever imagine  

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by: purpleiris This user has validated their user name.

Thu May 7 10:18:44 2020

What the heck is he thinking? Small businesses do NOT need to see an increase in shipping costs. They're excessive as is! What they need to do is quit robbing the American citizens' postal service!

Funding pensions 75 years in advance is criminal! No major corporation is required to do that.

Giving steep discounts to the rich while taking from the poor was NEVER a good plan! Amazon and other big companies should be paying the same rates we all do. Giving bulk discounts to those who can afford to pay just goes against fair trade. Those discounts could and should be given across the board via commercial rates we all pay.

China and other countries getting steep discounts is also criminal and goes against fair trade.

Giving postal workers too much power isn't a good idea, either, because there are always those who take advantage. They should worry about losing their job if they're not doing a good one...period. There should be no leeway for the lazy and wicked.

Nowhere in there does it suggest that the rates small businesses pay should be increased! There are SEVERAL reasons the USPS is bleeding and it's certainly not the fault of American small business.

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by: purpleiris This user has validated their user name.

Thu May 7 10:45:25 2020

One other thought...

Allowing big business to charge less for shipping makes it look like smaller merchants are gouging on shipping even when they're only charging the commercial rates they pay. That gives big business an undue advantage over small business in more ways than one.

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This user has validated their user name. by: iheartjacksparrow

Thu May 7 10:52:12 2020

wrslss1222 writes: "A TV was installed over 6 months ago which was supposed to advertise the Post Office products but they have not been able to get it to work."

At my post office they have a huge, flat-screen TV running ads for their services, which I don't have a problem with, except for the fact that it runs all the time. There's a Pokemon GO gym there, so I am there late at night, every night, to battle, and that TV is on, as well as all day and night Saturdays and Sundays when they aren't even open. How much in electricity are they paying when there's no one to watch?

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This user has validated their user name. by: Covid-20

Thu May 7 11:13:16 2020

@gyanarthi

FOUR MORE YEARS. Deal with it. Sorry you FAILED to be on the winning team.

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