A hedge fund which made millions with its stake in GameStop before the struggling retailer became a Reddit-fueled stock phenomenon has invested in Pitney Bowes, believing its assets are undervalued, and suggesting its ecommerce unit could be sold. Hestia Capital may put forward a former Stamps.com executive as a director.
The situation in the parcel industry — high shipping rates, increased surcharges and shipping delays — is a convergence of many complex issues, including supply/demand imbalance, a rough economy and geopolitical woes. Let’s take a closer look at how ecommerce and government laws have disrupted supply chains.
While U.S. parcel volume rose nearly 6% to 21.5B pieces in 2021, it was the slowest growth in five years, and considerably less than the massive 31.5% gain in a pandemic-driven 2020, according to Pitney Bowes’ annual index. It also showed smaller carriers growing rapidly but still holding a tiny percentage of the overall pie.
Adding a cubic pricing option for users of USPS Parcel Select Ground product will be a boon for shippers with small, dense and heavy packages but not so much for others, experts said ahead of the July 10 live date for the change. In general, packages must be under 20 lbs. and there’s a 50,000 package a year minimum.
As much as ecommerce sellers want every shopper that loads up their cart to complete a purchase, the reality is that some simply won’t. However, many shoppers that vanish at the sight of added shipping fees will in fact hit the “buy” button IF they are given more shipping options and control over how they receive their order.