The Postal Service – Amazon – Trump Events, Explained

There has been a lot of news regarding the U.S. Postal Service, Amazon, and Trump in the past couple of weeks. Today we’re breaking down exactly what is going on.

Amazon

The Postal Service has more than one company that it gives deep discounts to when it comes to shipping prices, but it is true that Amazon has an agreement with the Postal Service. Under this agreement Amazon delivers many packages to the USPS, and the USPS delivers the packages on the last leg of their journey.

These contracts must cover all of the costs of the Postal Service. Regulators have approved the contract with Amazon, which means the Postal Service is not losing money by working with Amazon in this way.

Amazon handles a large portion of the delivery of its packages itself. Packages are sorted by zip code and carrier route before being dropped off, so the USPS is only handling a small portion of the work when it comes to these deliveries, making it more cost efficient than it may at first appear.

The Postal Service

Trump’s claims that the Postal Service is losing a lot of money are not incorrect. They reported a loss of 1.8 billion in 2017 compared to 2016. This is due to a number of factors, including the decline in First-Class and Marketing mail volumes. The obligation to pre-fund retirement benefits has also had a huge impact in the USPS’ revenue.

The Postal Service was losing money before Amazon became such a big contender in the packaging business. While there certainly has to be an overhaul in postal reform, Amazon is far from the only contributing factor in the loss of USPS profits.

Trump

Trump claims that the USPS should be making more money off Amazon, and they certainly could. USPS is charging below market rate for parcel delivery, not even accounting for whatever discounts they give to Amazon. With how much business the USPS garners from Amazon, surely they could be making more money with a shallower discount.

But Trump is incorrect in saying that the Postal Service is losing money because of this deal with Amazon, simply because the law states that any contracts with the USPS must at least break even. Beyond that, Amazon brings in a lot of consistent business for the USPS.

Trump’s Task Force

Trump has issued an order demanding that the Postal Service’s finances be evaluated, following his many tweets regarding the USPS and Amazon. This task force will be used to examine the USPS’ finances, including the Postal Service’s operations.

Investigations by this task force will include many parts of the USPS business model, including parts of their business plans that involve companies such as Amazon.

Trump insists that there needs to be action to make the USPS profitable again. There have been no details about when this task force will be created or when changes may be implemented.

So What Does It All Mean?

While all this finger pointing may seem childish, this task force could actually be great for the Post Office. Studying the USPS financial situation can bring about great solutions that can help the USPS.

Technology simply means there is less first-class mail, and with the requirement to pre-fund benefits the USPS is going to struggle to operate in the black. The rise in e-commerce has helped some, but not fully. Hopefully this task force can find problems that can be solved down the line.

In the short term, however, very little, if anything, is likely to change when it comes to day-to-day operations.

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Postal Services From Around The World

Who has the best Postal service in the world? There are plenty of studies out there about this, but there really is no easy answer. Today we want to share some insights into a few of the different Postal services from around the world to give you a chance to see what we do differently.

Japan

Japan is a relatively small country with around 24,000 post offices. Japanese Post Offices handle letters and parcels, but in addition also offer banking and insurance. Japanese mailboxes are red and pickup times are listed on the box.

Only the city’s central Post Office is open on weekends, but they do offer a 24/7 counter. This may be only one nighttime counter, but this does mean citizens always have access to a Post Office if they look. Several years ago Japan became an IPO, essentially privatizing their Postal service.

In Japan you can send and receive parcels and mail any time of day (or night). This means that a parcel delivery at 9:00 PM on a Sunday may not even be an unusual occurrence. The Japanese Postal Service is very efficient and is considered to be one of the best in the world.

Australia

Australia faces many of the same issues as the United States when it comes to the large distance that needs to be covered when it comes to mail delivery. It is self-funding and committed to providing services to all citizens.

The Postal Service operates in three markets; letters & associated services, agency services & retail merchandise, and parcels + logistics. This covers mail delivery, insurance, currency conversion, parcel delivery, banking services, and more.

Australia is always looking for innovative ways to improve their Postal program. The mail service in Australia almost always makes a yearly profit, so they’re doing something right.

United Kingdom

In 2015 the Postal Service became privatized. Even so, it maintains Universal Service, meaning items of a certain size can be sent anywhere in the UK at a fixed price. They offer expedited mail delivery, business mail, and promotional mail.

They have a network of 38 mail centers which serve specific areas. Mail is transferred from these mail centers to delivery offices, from which mail is delivered to recipients. There are occasionally reports of mail going missing and not arriving at the final destination.

Privatization has led to a huge loss of jobs and of delivery offices. This means the workload on the Postal employees remaining has increased. The privatization of the UK Postal Service is still controversial in the country.

Singapore

Singapore has only 62 post offices, but it is one of the more innovative Postal services in the world. They provide mail service, self-service automated machines, and several years ago tested droid delivery.

Drones arriving with mail or parcels would make the delivery only if it received an authentication signal within three minutes. Otherwise it would return to the base.

While drones are not being used for day-to-day operations, officials are discussing how to use this new technology. Drones may be used in the future for reaching remote locations. Testing is still being done to determine if drone delivery will ever go mainstream.

South Africa

Many homes in South Africa do not have individual mailboxes. Instead, citizens may opt to pay for a PO box. These PO boxes can be located almost anywhere, such as in shopping centers. There is often a waiting list to be assigned a PO box close to the individual’s home.

Many financial transactions are handled electronically, which cuts down on the amount of mail being delivered at all. The sending and receiving of mail is simply not a large part of people’s lives.

If you do want to send mail quickly, you can go through a private parcel and letter service that can ship quickly both domestically and internationally.

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Featured Product: Stamps

Here at MyPostalUniforms.com, it is obvious that we sell USPS uniform items. But did you know that we also sell stamps?

We have four main categories to choose from, with different options within each one! A lot of people don’t know that we sell stamps, so this week we’re going to feature each category and give you a breakdown of the type of stuff we carry!

 

Best Selling Pre-Inked Counter Stamps

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These stamps all come pre-inked and are made for counter use. Our stamps feature a retractable frame, which eliminates a need for stamp pads. The stamps can create up to 100,000 impressions before they need to be refilled. These stamps are commonly used in post offices across the country and are sure to come in handy while you are working.

Some examples of stamps that we carry include Air Mail, Do Not Bend, First Class Mail, and much more. Click the link above to browse all of our counter stamp options.

 

Best Selling Pre-Inked Carrier Stamps

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Our carrier stamps are small and pre-inked to make them easy to carry while on a route. The ink is easily refilled so they can be used again and again. The top of the stamps come with bold labels to make them easy to identify.

Some examples of stamp options include Insufficient Address, Returned For Postage, and Vacant. Always have the stamps you need with you to get the job done. Check out all of our stamps today by following the link above.

 

 

Dater Stamps

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Our dater stamps are sure to fit all of your needs. Print your month, date, and year as needed with different colors of inks.

We have several stamp options, including a Twist Dater Stamp which comes with a 6-year date band and a 10-Year Custom Circular Dater Stamp which comes with a 10-year date kit. Follow the link to check out the products for the full details.

 

 

 

 

Custom Ink Stamps

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So, maybe you’ve browsed our stamps and we just don’t have what you’re looking for. Well you’re in luck! You can design your own stamp to meet your specific needs, and we’ll make it for you!

Our custom stamps come with a retractable frame to help fight smudging. We offer custom stamps in red, blue, black, green, and purple ink. For more details about how to order, simply follow the link.

 

 

 

 

And that’s it for our stamps! As you can see we have tons to choose from, and we want you to know all of your options. We hope you had a lovely Labor Day weekend!

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Update Regarding CCA Uniforms

There are some new changes to how ordering letter carrier uniforms works, and due to that, there will also be some changes to how MyPostalUniforms.com operates. A new order form is being implemented instead of CCA’s being provided with a debit card.

The local Postmaster will pay for a purchase either by check or credit card. Following this, PPU will invoice the Postmaster. Due to this new format PPU will only be able to accept orders on the Official USPS CCA order form.

You can find a sample of the new form here.

If you have any questions, feel free to give us a call at 1-800-229-4500 for further assistance. In the meantime, it seems that winter has finally ended and spring is here, which means our spring items are sure to come in handy. You can browse our selection of postal shirts and shoes. Or, to make it easier for you, we’ve created an entire section specifically for spring uniforms.

Enjoy the weather and be sure to keep an eye on this blog for deals and updates every week!

 

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