Treasury Tells USPS to Hike Some Package Prices, Seize on E-Commerce Growth
The U.S. Postal Service should seize on e-commerce growth and charge market-based prices for mail and package items not deemed “essential postal services,” the Treasury Department said Tuesday. The long-awaited report was prompted by President Donald Trump’s criticism of Amazon…
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(see 1804130059). Between 2010 and 2018, USPS package volume doubled from 3.1 billion pieces to 6.2 billion pieces, and revenue grew from $10.3 billion to $21.5 billion, said Treasury. The increase in package revenue hasn’t allowed the USPS to make up for dramatic declines in mail delivery. “Packages have not been priced with profitability in mind,” the report said. Charging market prices for package delivery will “allow the USPS to optimize its income in order to fund its operations, capital expenditures, and long-term liabilities,” the department said.