USPS Shipping Costs Increase

ColoradoBricks

Was updating my store today, was really surprise on the First Class International increase, what I could send for $6-$7 yesterday is now close to $14. They did however increase the range $6-$7 was for 2oz, but now the $14 is up to 8oz, however that does not help the small orders.
The doubling of prices a few years back, cut my international sales by 75%, I think this one will kill it completely.

At least there are few good thing for Domestic, like being able to send First Class up to 1lb..

CCC

I agree. I used to buy a lot from the US. Hardly any from a few years back.

It is bad for sales but it may also kill smaller intercontinental trades here too.

SumoLego

Hear hear!

chrisalddin

could this be linked to the market crash that started in china?  

madforLEGO

chrisalddin said:

could this be linked to the market crash that started in china?  

It is related to a lot more than that. What is annoying is that fuel prices are down, so theoretically shipping costs should not be rising. But you have to take into account the workers union, material costs, and if they need to upgrade any infrastructure. It does not help that the USPS constantly loses money, which Senators and Congressmen do not like to see.

gmonkey76

I think the number one factor is people paying all their bills online. Less mail for the post office means raise rates or layoff people.

madforLEGO

gmonkey76 said:

I think the number one factor is people paying all their bills online. Less mail for the post office means raise rates or layoff people.

Knew I was forgetting something.

bluedragon

Raising too much can also lead to loss of business and ultimately layoffs. I think getting rid of the lower rates for First Class international service is a mistake.

TheLoneTensor

gmonkey76 said:

I think the number one factor is people paying all their bills online. Less mail for the post office means raise rates or layoff people.

If companies don't account for market changes, they tend to die.

Once Amazon finishes getting their new shipping infrastructure in place, and opens it up for 3rd party, then potentially consumer use, I could see the USPS dying/getting bought out altogether.  The next couple years could be very interesting when it comes to mail both in the US and Europe.

SumoLego

There is something odd about privatizing the mail.

TheLoneTensor

Well, it would effectively crumble the ending of Miracle on 34th Street.

SumoLego

And my faith in a centralized service-oriented government.  

But, I'm already looking forward to my Buy 'n Large hoverchair on the Axiom.

Dawn

Isn't the post office service written in the constitution ? That would be a fight if that one goes away :)

1265

USPS business model is crap......losses year-after-year in revenue.  They lose customers every year and have been struggling for well over a decade.  I understand the electronic age has been a cause in their decline, but the USPS has done nothing to revamp itself as the world changes regarding delivery service.  The USPS has become dependent on government oversight and it's backing (funding) that I believe it's time for the government to privatize the post office .  It only makes perfect sense, however, those who disagree only care about the welfare system the USPS has become.  The USPS is a breeding ground for those with a majority of IQs of <70.  It's run by a majority of overpaid executives, with a majority of low level talent.  Don't get me started on the DMV.....:).

pharmjod

My understanding of USPS is that it struggles precisely because it is a quasi government agency. Congress has essentially tied it's hands so even it can't possibly be run efficiently (financial wise anyway). That and the crazy pensions it pays out for retirees. No way it will ever be privatized though. If you don't live in a rural state/area you have no idea the political fall out of even suggesting the closure of remote, unaffordable branches.

That said, I love the USPS and think we have one of the greatest mail systems in the world.

BrickDancer

^My bro in law is a carrier and gave me the situational background on its quasi-governmental status being the crux of their problems over the past decade or so. Why they got into this agreement is another discussion, but essentially they are screwed no matter if they do good or not in a year. If they take a loss, they have to eat it up like any other private business through cuts or layoffs. If they make a profit, they are obligated as a governmental office to allocate all of those profits to fund pensions decades into the future. So just imagine that as a management scenario, worst case you lose money best case you don't make any but get to keep your job.