Postal Delivery Delays Trouble E-Commerce Sellers
20 August 2020 - 7:03AM
Dow Jones News
By Jennifer Smith
U.S. Postal Service package-delivery delays are causing
headaches for e-commerce sellers and prompting digital marketplace
eBay Inc. to look for alternatives as heavy online demand taxes
domestic parcel networks.
EBay said in a blog post last week that the USPS "continues to
be strained" and that the company is "working on other affordable,
more reliable delivery options for sellers."
The problems began in the early weeks of the pandemic, when the
Postal Service was coping with staffing problems due to coronavirus
outbreaks and a surge of packages as more people shopped online.
The issues have persisted through the summer, as operational shifts
under Postmaster General Louis DeJoy draw complaints about delays
to ordinary mail deliveries amid mounting questions over whether
the agency can handle an expected surge in mail-in voting.
"Delivery and scan delays persist, and we are monitoring not
only the delays but ongoing negotiations in Washington," Marni
Levine, eBay's vice president of seller operations and engagement,
wrote in the post.
A company spokeswoman declined to comment further.
A USPS spokeswoman said the agency "has experienced some
temporary service disruptions in a few locations domestically, due
to the Covid-19 pandemic. Things are slowly getting back to normal.
However, until we reach pre-Covid conditions, we continue to
leverage our available resources to match the increased workload,
including hiring based on local needs."
This week Mr. DeJoy said some operational changes will be
suspended until after the November elections. A Postal Service
spokesman declined to comment on whether that included reversing
directives such as telling carriers not to make multiple trips to
distribution centers for additional packages and mail, which postal
union representatives and customers have said slowed
deliveries.
In recent months online sellers say some packages shipped
through the Postal Service are taking days or even weeks to arrive
at their destinations and that some shipments can't be tracked at
all.
The difficulties are complicating business for small operators
who rely on the Postal Service to ship packages at affordable
rates, and come as USPS and other big parcel carriers whose
networks are also straining to meet demand are planning to raise
shipping fees during the holiday peak season.
Patrick Green, an analytics consultant based in Burlington,
Conn., who sells new and used golf clubs through his GotClubs eBay
store, said nearly half of his USPS shipments since May have been
late, with about a quarter taking more than one week to arrive.
"These delays lead to a ton of extra work for me," he said. "When I
see an item has arrived in five days, I consider that lucky."
In July, USPS delivered 91.6% of first-class and priority mail
packages on time, the lowest share since April, when the rate was
91.1%, according to ShipMatrix Inc., a software provider that
analyzes shipping data.
On-time service improved after the Postal Service added an
additional day to some delivery commitments in late April because
of the coronavirus, but it hasn't yet returned to pre-pandemic
levels, according to ShipMatrix. The firm said 93.8% of parcels
arrived on time between Aug. 2 and Aug. 12.
Shipping experts say all parcel providers, including delivery
giants United Parcel Service Inc. and FedEx Corp., are struggling
with on-time performance as accelerating e-commerce demand during
the pandemic pumps millions of added shipments into parcel
networks.
UPS delivered 95.2% of packages on time in the second quarter,
while FedEx and USPS delivered 92.6% and 92.2% on time,
respectively, according to ShipMatrix.
A FedEx spokeswoman said the company is experiencing peak-level
residential volumes and taking steps, including hiring more
workers, "to help ensure we continue to deliver for our customers."
A UPS spokesman declined to comment on the data but said the
company is committed to providing its customers with "reliable,
high-quality service."
Small businesses and e-commerce sellers tend to rely more on the
Postal Service than big commercial shippers, whose higher volumes
allow them to negotiate discounted rates with UPS and FedEx.
That leaves few options for operators like Kathleen Doherty,
owner of PupPanache.com, which sells personalized dog collars and
harnesses on Etsy Inc.
"Small businesses like me cannot afford to ship UPS or FedEx and
still make a profit," said Ms. Doherty, of Parker, Colo. She said
she stopped shipping overseas during the pandemic because of
international mail delays, and that this month she has had some
domestic USPS packages out for two weeks with no way to track them.
"Packages getting lost, that would make a lot of sellers say it's
not worth it."
Write to Jennifer Smith at jennifer.smith@wsj.com
(END) Dow Jones Newswires
August 19, 2020 16:48 ET (20:48 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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