The Cost of Shipping Online Purchases Could Rise in a Big Way

Date: Wednesday, December 5, 2018
Source: The Wall Street Journal

A Trump administration review is proposing sweeping changes at the U.S. Postal Service, the WSJ’s John D. McKinnon reports, including shifts in operations and pricing that could raise alarm bells at companies that ship commercial packages.

The report requested calls for raising prices for many types of commercial deliveries, saying the postal parcel business has “not been priced with profitability in mind” because it doesn’t capture the real costs of delivery. Raising those prices would hit squarely at Amazon.com Inc., which sends big parcel volumes through the USPS network, and could also raise costs for the broad array of retailers whose digital strategies often push more boxes onto postal vans for delivery to customers. Private carriers also use the postal services for last-mile delivery, but they aren’t shy about raising rates to offset higher costs.

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