Amazon, USPS to start Sunday deliveries
The world's biggest online retailer seeks to broaden its reach by getting orders to customers on any day of the week.
By Danielle Kucera, Bloomberg
Amazon.com (AMZN) and the U.S. Postal Service are teaming up to offer Sunday delivery as the world's biggest online retailer seeks to broaden its reach by getting packages to customers on any day of the week.
Customers in New York and Los Angeles can start choosing Sunday delivery at no extra cost from this week. The service will expand to Dallas, Houston, Phoenix, New Orleans and other cities next year, Amazon said in a statement today.
While Amazon is seeking to siphon away customers from Target (TGT) and other retailers, it's also facing competition from online-shopping sites that are rolling out new services to get products to customers more quickly and efficiently. EBay (EBAY) offers deliveries under an hour, seven days a week, for some products, and Wal-Mart (WMT) operates a same-day delivery service for groceries and household goods.
"What really drives the company -- it's all about selection growth, lower costs and increased speed," Dave Clark, Amazon's vice president of worldwide operations and customer service, said in an interview. "Thousands of people around the world spend every day working on those three things in operations, and a big piece of speed for us is adding seven-day delivery."
Amazon won't change shipping prices for customers, adding to fulfillment costs that made up the largest portion of the company's expenses in the third quarter. Investors have endorsed the investment in capacity -- spending increased 35 percent to $2.03 billion -- pushing up the company's shares 40 percent so far this year even as the Seattle-based retailer posts losses.
The Web retailer's partnership with the postal service means faster delivery for Internet shoppers, especially Amazon Prime members who pay $79 a year for unlimited two-day shipping -- a promise the company previously couldn't fulfill if someone ordered a product on Friday afternoon. For the postal service, the alliance means more packages flowing through its network, which generates more revenue than flat mail.
Sunday delivery is part of Amazon's strategy to keep shoppers coming back to buy products on its Web store. The company had 89 warehouses in 2012 and is planning 7 more this year. Amazon also unveiled plans in July to increase staff by 5,000 in 17 centers this year, and is hiring 70,000 seasonal workers in the U.S. to meet holiday order demand.
By investing in fulfillment centers -- massive warehouses that store and package everything from books to garden furniture -- Amazon has improved its ability to sort packages so that they reach shoppers more quickly and efficiently. That could help the U.S. Postal Service as it increases its breadth of services, Clark said.
Amazon's Sunday delivery service is being introduced just before the year-end holiday shopping season, when the postal service predicts that 15 billion pieces of mail will be delivered.
Does nobody remember that the USPS is in fact the only part of the government that wasn't in debt before Congress came up with New Accounting math that gave them to access billions of dollars of the postal services money(profits and retirement holdings) to pay off the governments debt Against the Laws that they wrote ? And that by doing so wrote in legislation that forces the Postal Service to make the payments of those loans to ITSELF !!!!!!! It cannot cover the missing funds and make the payments at the same time . Its like buying a new car and making the dealership pay your payments ...Great for you but not so much for the business.
Don't believe it Look it up , its the way our government does business . No conspiracy theories or party lines here just scary truths
USPS won't deliver packages to my house even on weekdays. They just leave a note, and I have to drive to the PO to get it.
Rural Carriers do not get overtime unless they work over their evaluated time the 4 weeks prior to Christmas. Who gets double, not USPS employees. Get your facts straight. Just another person with diarrhea of the mouth and too stupid and/or lazy to check facts.
The post office just told the American public that they want to stop Saturday delivery and now they are going to start sunday delivery wow maqke up your mind!
DIE E-BAY, DIE!
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Why are stronger numbers considered bad news? Investors are worried about the impact on inflation and interest rates.
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