Today's Hard|Forum Post
Today's Hard|Forum Post

Sunday June 18, 2017

The USPS Is E-Commerce's Biggest Challenge

J.C. Penney’s CEO is worried that shipping companies cannot keep up with the growing rate of e-commerce and the demand for quicker delivery. While the USPS, UPS, and Fedex are getting more business than ever, he claims that none of them have been making an effort at increasing capacity. The postal service, in particular, is being singled out as the least likely to handle the escalation well. I am actually surprised things haven’t come to a "screeching halt" yet due to the increasing prominence of same-day or next-day orders.

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...e-commerce companies' "biggest challenge" going forward is that while giants like Walmart Stores Inc. and Inc. push for faster delivery, the United States Postal Service, in particular, won't be able to keep up, at least for the same cost that exists today. "Fulfillment costs are increasing dramatically because we have UPS, Fedex and USPS as the three main entities to ship and fulfill orders and they're not increasing capacity to deliver at the same rate e-commerce is growing," [J.C. Penney CEO Marvin ] Ellison said. He said this will cause a supply and demand issue "that's going to be apparent here pretty soon."