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Internet Usage Boosts Post Office Revenue

setirw writes "Contrary to popular belief, the New York Times reports that Internet usage has actually boosted the USPS's revenue, instead of decreasing it. It is commonly believed that the rise of the Internet has negatively affected the Postal Service's revenue, since e-mail usage is rapidly superseding snail-mail usage. 'Six years ago, people were pointing at the Internet as the doom and gloom of the Postal Service,' said James Cochrane, manager of USPS package services. However, the widespread usage of e-commerce sites has boosted USPS revenue, since millions of packages are shipped from such sites daily."

9 of 140 comments (clear)

  1. So?.. by Klaidas · · Score: 5, Insightful

    I think this is obvious without any researches - if we buy stuff on the internet, they ship that stuff.
    What would be interesting is how much less *letters* are now being sent via snail mail

    1. Re:So?.. by Aladrin · · Score: 4, Insightful

      I don't think this is obvious at all. In the last 5 years, I believe I have shipped maybe 2 things from online retailers to myself with USPS. Everything else (and I'm talking dozens of packages) went Fedex or UPS. How many sites even -offer- USPS as a shipping option?

      The only 'obvious' thing that would show an increase would be Netflix/Gamefly/etc. There's a LOT of shipping going on there.

      --
      "If you make people think they're thinking, they'll love you; But if you really make them think, they'll hate you." - DM
    2. Re:So?.. by sangreal66 · · Score: 4, Informative

      USPS Priority Mail is pretty common on eBay and smaller retailers

  2. Phishing will push it even further by arivanov · · Score: 4, Insightful

    I have an extremely entertaining conversation with one UK bank at the moment.

    The clowns insist on using snail mail to reply to mails sent using their "secure" webmail. They have stated that they do not send emails to customers as a matter of policy and they are forced to stick to it even if this means filling Royal Mail coffers.

    As e-commerce grows there will be more and more cases like this until the end-users start to actively use encrypted/signed email and banks start to require this for communicating with them.

    --
    Baker's Law: Misery no longer loves company. Nowadays it insists on it
    http://www.sigsegv.cx/
  3. duh! by Shivetya · · Score: 4, Informative

    First class mail isn't where the money is, especially home delivery.

    If they could they would not even deliver on weekends. Hell they could save money by delivering fewer days. My Aunt and cousin are Postmasters. Home delivery is the big expense.

    If it wasn't for filler (all that junk mail) first class postage would be even higher. Its still the best deal for getting something to someone.

    --
    * Winners compare their achievements to their goals, losers compare theirs to that of others.
  4. The Royal Mail knows this by Don_dumb · · Score: 5, Interesting

    That is why they are just about to change the postal charges for packages to include the size of the object as well as the weight. http://news.bbc.co.uk/1/hi/business/5231576.stm Previously they only charged based on weight.

    --
    If this were really happening, what would you think?
  5. Sounds like a similar story to the UK... by Xest · · Score: 5, Interesting

    The story on the old rumour mill over here was that Amazon was almost single handedly responsible for saving the royal mail in the UK due to the massive increase in revenue it brought with postage of larger packages.

    Personally, I don't beleive Amazon would've single handedly saved it, but no doubt it contributed alongside all the other online retailers. I think it'll only get better for postal services and couriers too, it's the high street that should be (Well, "is" rather than "should be" in most cases) worrying as people shift from a culture of high street shopping to having everything delivered by mail.

  6. Re:Who cares? by Jack+Action · · Score: 4, Insightful

    I highly doubt they were scared - considering the quality of service I receive in downtown Philly - job security is not an issue.

    Unlike the quality of service one receives when dealing with ecommerce sites on the internet.

    If I had to chose between script-reading or even non-existent ecommerce help, or a surly postal clerk -- bring on the surly 45 year old with the beer gut.

  7. To quote a famous man... by MWelchUK · · Score: 5, Insightful

    "When one door closes another door opens; but we so often look so long and so regretfully upon the closed door, that we do not see the ones which open for us."
    - Alexander Graham Bell

    It seems the post office are one of the few places that have found another open door rather than litigating to have the closed door forced open.