According to data from Pitney Bowes, Amazon had about 4.2 billion parcels at its disposal in 2020, of which about 2.8 billion were transferred to other companies for last-mile delivery. The question would be: was the USPS one of them? Does the e-commerce giant, Amazon, deliver through the USPS? Amazon is the largest e-commerce company in the United States. Read on to find out if it delivers through USPS.
Amazon delivers through the USPS. It signed an agreement with the USPS in 2013 and has since delivered more than half of its packages through the USPS. The USPS, which is the world’s second-largest delivery company, delivers roughly 30 percent of all Amazon packages.
Are There Specific Kinds Of Packages Amazon Delivers Through USPS?
Yes. Most of the packages Amazon delivers through the USPS are those whose delivery costs will be more expensive for Amazon. This relates specifically to those items to be delivered to remote or rural areas. This is because USPS as a postal service provider is designed in such a way that it can deliver to customers at any location and at their doorstep. Amazon customers have also noted that packages that are within the size and weight that can be conveniently delivered through the USPS are often handed to the USPS for delivery. Similarly, packages that weigh over 20 pounds are most often delivered through USPS because Amazon does not usually deliver heavy packages.
What Percentage Of Amazon Packages Are Delivered Through The USPS?
Although Amazon has not stated this in specific terms, analysis shows about 40 percent in 2022. This percentage has risen from around 30 percent in 2020. Similarly, about 75 percent of deliveries made by USPS are Amazon’s packages. In fact, on Sundays, most of the USPS deliveries are from Amazon. Analysts have also said that USPS delivers between one third and half of Amazon’s packages.
Why Does Amazon Deliver Through USPS?
Amazon does not seem to have the capacity run delivery services to rural and remote areas, but USPS does. So, Amazon uses USPS because it reduces the delivery cost to such places, which is double the average price for Amazon. In a similar manner, USPS can get your orders delivered in two days, depending on where you live and from where your items are always shipped. So, while taking advantage of the cheaper delivery rate of USPS, Amazon will be able to reach rural and remote areas and deliver to all addresses in the U. S. Furthermore, according to a Citi report from 2017, USPS undercharged Amazon by $1.46 per box, a figure that Morningstar consumer equity analyst R. J. Hottovy claims still remains true today.
The mutual benefit both parties enjoy is another reason to consider it. While Amazon wants the cheaper cost of last-mile deliveries, USPS has recorded a drastic reduction in its financial loss, from $1.6 billion per year before the agreement to only $2.7 billion in 2017, four years after the partnership agreement. They have also had increased mail volume since then.
How Does Amazon Deliver Through USPS?
Delivery through USPS is done through Amazon’s fulfilment centers. Amazon’s fulfilment center is where Amazon’s goods and packages is stored, sorted, packaged, and labelled for shipping. These packages are sorted at the sortation centers located somewhere inside fulfilment centers. When the sorting is completed, they are sent to regional hubs, who will sort them by ZIP code and ship them to the USPS. USPS employees handle last-mile package deliveries once packages arrive at local post offices.
Conclusion
The e-commerce giant, Amazon, has been delivering packages through the USPS since 2013. Although it is building its delivery network, it seems to rely on USPS to deliver packages to customers in rural and remote areas. This is because it is cost-effective. Amazon uses USPS for lower-cost delivery to remote locations, while USPS benefits financially from the contract.
Frequently Asked Questions
Can I Choose Not To Use USPS For my delivery?
Yes. You can call Amazon’s customer service number and state why you do not want your package delivered through USPS. On the other hand, if the box is of a size and weight that the USPS can conveniently deliver, the Amazon career will most likely hand it over to the USPS to deliver at your doorstep. This has been happening for about 20 years now, says an Amazon worker. Another way to do so is by selecting the delivery option you want and then paying for the extra cost. If you do not choose one, Amazon will use the cheapest one, which is USPS.
Can Amazon Deliver Without The USPS?
Amazon can deliver packages without USPS. It is also its own delivery company, on addition to relying on carriers like USPS and UPS to deliver packages. Along with delivering items to customers’ homes, Amazon can now get goods from its foreign plants to your doorstep through an internal network of ocean freighters, trains, planes, and trucks. This is likely linked to Amazon’s reliance on USPS, which receives no tax revenue, to expand its delivery network. According to a December Morgan Stanley review of approximately 70,000 transactions over nine years, Amazon handles last-mile delivery for about 46% of its goods.
In recent years, the rate of deliveries made directly by Amazon without the USPS has significantly increased. Amazon, for example, delivered 67 percent of its packages on its own in 2020. This increased from 50% in 2019. Insiders have also estimated that Amazon will ship 85 percent of their packages in 2023. Obviously, Amazon has also grown its last-mile delivery network. The preceding suggests the possibility that Amazon might one day stop using USPS for delivery.
On the other hand, total disengagement from USPS appears unlikely. This is because USPS can quickly and conveniently deliver to remote and challenging areas, compared to Amazon. Amazon would have to incur double the cost to reach such places. So, they would continue to use USPS, at least, for such purposes only.