Quick question: Which of the Big 3 U.S. parcel carriers delivers the most ecommerce packages? Surprise: It’s the United States Postal Service. So why are ecommerce merchants shifting their shipments to the USPS? Multichannel Merchant dove into this topic, and got some answers from some small- and medium-size merchants.
FedEx’s continued focus on ecommerce growth, reflected in its capital spending and recent spate of acquisitions, paid dividends in fiscal 2016, especially the 20% growth in ground revenue. Walmart’s recent addition of a subscription service in response to Amazon Prime, partially served by regional carriers, is not a concern, company executives said.
The U.S. Postal Service reported operating revenue of $17.7 billion in Q2, up $788 million or 4.7% from 2015. The increase was primarily due to an 11.4% gain in shipping and package volume and pricing changes. While the USPS keeps posting double-digit parcel gains, it continues to drown in pension-driven red ink, with a $2 billion quarterly net loss, up from $1.5 billion a year ago.