Amazon Among Vendors Against Plan to End Saturday U.S. Mail Delivery (NASDAQ: AMZN)
The United States Postal Service has suggested a variety of ways to address their budget deficit. One of them includes ending Saturday mail delivery altogether. Amazon.com, one of the largest websites of Internet sales, is speaking out against the proposal for the U.S. Postal Service to end their Saturday mail service.
With the increase in Internet sales, it is only logical that customers would want the products they have purchased to come as soon as possible. As stated in an article on TechFlash from Misener’s statement to a subcommittee of the Senate’s Homeland Security and Government Affairs Committee, “As I mentioned before, Amazon’s customers have come to appreciate and expect Saturday delivery. While they may be willing to wait until Monday or Tuesday for a bill they don’t really want; an advertisement they didn’t ask for; or a magazine to which they subscribed long ago; they expect the items they purchased this week to be delivered as soon as possible.”
Misener also warned that if the U.S. Postal Service ends Saturday mail delivery, Amazon would move a sixth of its U.S. postal business to other carriers.
CVS Caremark, which ships a large amount of prescriptions by mail (more than 50 million in 2009 alone), warns that customers would have to pay higher costs if the Saturday mail service ends due to altered delivery schedules or higher rates charged by Postal competitors. As stated in an article in The Washington Post, “These added costs not only impact patients’ pockets but will also place significant fiscal strain on our health-care system,” Kenneth Czarnecki, senior vice president at CVS Caremark, said at the forum, hosted by the Postal Regulatory Commission.”
Not all major online services are against ending Saturday mail though. Netflix is in favor of the plan to end Saturday USPS mail services. They argue that a “well functioning” Postal Service is more important than “maintaining current delivery frequency.” As stated in an article in The Washington Post “Netflix does not endorse Saturday delivery cuts “in a vacuum” but considers them “a reasonable proposal in light of the very difficult challenges facing the Postal Service,” according to the prepared testimony of executive Andrew Rendich.”
Crate & Barrel sends out millions of their catalogs through the U.S. Postal Service, and they said that they reluctantly support the Saturday cuts if the Postal Service is able to control postage rates and not continually raise them higher.
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