New USPS Connect Next Day Service Made Just $191 in 3 Months
Earlier this year the Postal Service announced a new suite of services that they had titled USPS Connect. A new agency report has revealed how in the first 3 months of market testing, one next-day service product has made just $191 in revenue.
- Do you need a business bank account for your online business? Have a look at our review of the five best bank accounts for sellers, some of which are free with no minimum balance or deposits.
- AI can change your entire social media game today. Learn how you can save time writing engaging content faster. [sponsored]
- How to lower your taxable income and pay less in taxes. [sponsored]
- ‘My Community Made’ is a new marketplace to compete with Etsy and Amazon Handmade.
- EXCLUSIVE: Interview with Chris Prill, VP eBay Motors, discussing the new Guaranteed Fit program.
USPS became very aware of the competition they face from the likes of FedEx and UPS’s next-day services and aimed to close that gap with new services under the Connect umbrella.
The bad news for USPS is that in the 3 months from January to March of 2022 the USPS Connect Local Mail service handled just 65 parcels even though it was available in over 800 locations across Texas. For those interested the Local Mail report can be seen here.
USPS Committed To Longer Testing Period
Whilst the first 3 months of the service rollout have not been regarded as a success USPS is committed to its longer testing period. The postal service plans to run the Connect Local Mail market test for two years with a phased rollout nationwide. Since this initial report only focused on January to March, the Postal Service has been expanding Connect Local Mail’s coverage throughout the U.S., including Wisconsin in June and the Evansville, Indiana, area in July.
The Local Mail Connect service provides same-day or next-day delivery to addresses served by the local post office. It’s designed as an “economical alternative” for shippers regularly sending documents in their local area, rather than over the longer distances that many of USPS’ services are designed and priced for.
“While today Connect Local has not been price-competitive, they are very much in the drawing board stages,”
“They’re trying to figure out exactly where they fit in the marketplace, and we do expect them to get much more competitive as time goes on. Rolling out the service has come at a cost. The administrative and startup costs for Connect Local Mail between Jan. 9 and March 31 totaled $531,584,” said Gordon Glazer, Senior Consultant, and USPS Specialist at Shipware.
The postal service is hoping to see savings through a new operational model being used to fulfill Connect Local deliveries, with parcels staying at the local post office for processing and delivery rather than being moved into the agency’s plant network. This new model is part of the USPS Delivering For America Plan to make the postal service self-sustaining and profitable in the next 10 years.
Connect with us: Head over to our Facebook Group for Small Business Sellers and interact with other small business owners.
Follow us on Facebook, Twitter, or LinkedIn to stay up to date with relevant news and business insights for your online business.
Subscribe to Our Newsletter
Business Insights for Your Online Business Presented with a Dash of Humor
We do not share your information and you can unsubscribe anytime.
Dave is a Co-Founder of eSeller365. For over 10 years he has been involved with eCommerce with a particular interest in the marketplaces and the huge opportunities available for sellers when utilizing a multi-channel strategy. After a year of being the UK’s youngest eCommerce consultant, he built an education platform called UnderstandingE that showed the world how to utilize Magento as the “Third Generation of Multi-Channel software”.
Dave has also created a YouTube channel dedicated to entrepreneurship and eCommerce as well as a podcast dedicated to mental health awareness. When Dave isn’t working his main interests include learning and playing Chess, researching the Crypto and NFT space, and trying to find the nearest beach.