The USPS: Shipping “Powerhouse”

Until fairly recently, when thinking of small parcel shipping, only two companies came to mind: UPS and FedEx. Thanks to years of high-profile marketing efforts and organizations built to manage an expanding e-commerce market, the Big Two often found only themselves competing against each other. Now, with an increased emphasis on customer service and technology, the organization that traces its roots back to 1775 and operates the largest civilian vehicle fleet in the world, has earned a spot at the table.

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According to Harry Whitehouse, Co-Founder and CTO of Endicia, “…the U.S. Postal Service has transformed itself from a humble mail carrier to a package delivery powerhouse, and if businesses fail to notice this change and adopt it as a part of their shipping mix, they will lose money in the long run.”

As the most widely utilized platform for individuals and businesses to produce shipping labels, skeptics might say that it’s simply expected for Endicia to sing the praises of the USPS. That may be true, but it’s hard to argue the numbers.

According to data on the USPS website, in December of 2014, the Postal Service delivered a whopping 524 million packages, an 18% increase over 2013. UPS estimated 585 million packages while FedEx projected 290 million. (Neither has released final data).

Additionally, according to a Consumer Reports study in December of 2014, people favor the USPS for Convenience, Reliability and Overall Score when compared to the Big 2. An interesting turnaround as in recent years, the Postal Service has been widely disregarded as a major player in the world of small parcel shipping.

Once you consider the fact that delivery times range from 1-2 days throughout most of the U.S., there are no surcharges, free packaging, a product that allows consumers to take advantage of package dimensions rather than being penalized, and the USPS place in the market becomes more clear. Don’t forget, these guys hit 150,000,000 addresses each day! (No wonder the Big Two created services to partner with this unparalleled delivery network).

Although the USPS certainly isn’t the end-all-be-all of small parcel, it should be a top consideration. Improved pricing has made Priority Mail competitive up to 10 lbs. and, in a residential delivery scenario, almost always the right choice under 3 lbs. Incorporating the USPS into the shipping matrix not only makes sense, consumers are likely to find themselves utilizing the product with significant regularity.

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Move Method can show you how to effectively incorporate the USPS into your shipping matrix. Call or email today: 801-432-0022 or sales@movemethod.com