The second quarter 2013 was profitable for UPS. The company resulted in 1.2% total revenue increase as daily international package volume improved 5% and U.S. Domestic grew 1.9%. However, UPS regards its achievements unsatisfied. By words of Kurt Kuehn, UPS chief financial officer: “UPS second quarter results were below our expectations as a result of disappointing performance in freight forwarding and a slight miss in International package.”
While the politicians are working at cutting the USPS costs (read in The new USPS), the U.S. Postal Service managers are focussed on increasing the revenue. No surprise that they paid attention to the e-commerce segment as the fastest growing. Online consumers are expected to increase their spending by 62 percent by 2016 and U.S. e-commerce retail sales are expected to grow by 41 percent to $370 billion annually by 2017.
The Democrats & Republicans have introduced their new Postal Reform Acts that will allow the elimination of the USPS Saturday and door-to-door delivery. Studies have shown that these cuts would reduce mail volume by 7.7% that itself would result in a revenue loss of $5.3 Billion. For the postal service, that reported a net loss of $2.5 billion after five months into FY 2013, the strategy might work well though wold not solve he problem of prefunding retiree costs. The NH Labor News is saying:
No surprise, that the most common-used sales pushing method for online stores is a “free shipping”. By ComScore, there is a clear correlation between consumers’ use of free shipping and the dollar spent per order. It brings the retailers 53% higher revenues at the Christmas days than other days. Shoppers like free shipping because it is simple and allow them not to worry about the final cost calculation.
Unfortunately, not all e-commerce sellers can afford “free shipping”. But when it comes to the paid options, there is always the risk of the cart abandonment because of the shipping price being too high by the customers’ opinion. What to do?
When speaking about the US mail shipping market, the top three carriers came into mind - the USPS, UPS and FedEx. There are regional carriers also but their combined market share is so small that the American shipping business is totally associated with the above three only. Though several last months were full of significant happenings. Key industry merchant players are starting pursuit that will change delivery industry landscape drastically. Same-day delivery is no more a dream but forecoming reality. Need something today? You’ll get it.
In the Summer, when people travel a lot, actively decorate their homes and gardens, meet friends and go out, holidays bring major revenues to the sellers. Nevertheless, a usual retailer has the same shipping strategy for holidays as for business days. In most cases, it results in long delivery times and unsatisfied customers only. But we already know from the recent UPS & ComeScore report that 43 percent of consumers negatively recommend a retailer because the delivery takes longer than promised. Entrepreneur magazine has made a little investigation on the topic and prepared the advice to change the holiday shipping strategy for online shops that want to meet stable growth of customers and sales.
Recently, UPS published a marketing research “UPS Pulse of the Online Shopper: A Customer Experience Study” conducted by ComScore. Describing online shopping behaviour of US consumers it measures satisfaction factor, significance of mobile and social, evaluates cart abandonment drivers and returns&exchange experience. The research shows: only half of the respondents is happy with flexibility of shipping options (ability to pick up at a retail location, choose time and date of delivery and re-route packages); 43 percent of consumers negatively recommend a retailer because the delivery take longer than promised or products arrive damaged; though 78 percent prefer to choose inexpensive shipping option, more than 50 percent expect to have speedier options. ComScore made the following takeaways:
A few days ago, the scam emails mimicking FedEx’s color scheme and logo were issued motivating users to download the virus that then stole private info saved on the computer. On the 7th of June, people got emails of the following content (by listofscammers blog):
The U.S. Postal Service had always been of great importance to people, given their pricing policy and deep integration with lots of e-commerce sites like Amazon, Ebay and Etsy. So, a few hours of drop of their site on the 20th of June, made lots of people nervous and will probably require more patience because the WebsiteDownUpTime service shows today still some problems with performance:
Here, in the USA, we are getting used to thinking about shipping cost in connection with business or personal e-commerce needs. However, mailing plays still an important role in the life of many people worldwide. For instance, members of the CFCA (Christian Foundation for Children and Aging) form one-on-one relationships with their sponsored friends with the help of handwritten letters and cards through the mail.