The recent Amazon/USPS deal is nothing more than an experiment for now. Sunday delivery in LA and NY sounds like a great first step and more cities will follow suit if it works out. Of course consumers are the big winners when things like this happen, but the potential implications of this for the USPS are fascinating to consider if nothing else.
I mean think about it. One of the biggest headwinds the USPS is facing is that what they're delivering is becoming irrelevant and people don't need it. I mean with all due respect to Newman, who needs mail? Hey I said all due respect. But seriously, we know that free and convenient shipping is the biggest consideration for online shoppers and there's no reason to think there will be a fundamental shift in this thinking. It's why Amazon Prime continues to grow its user base quarter after quarter. But this whole Sunday offering could very well be the very first step in an epic turnaround for the USPS. If Amazon is able to exploit the USPS for delivering something people actually want (hey you ordered it after all), well hey that's all the better.
At the end of the day any product is only as good as its distribution. We've seen it play out time and time again and it's why Amazon and Bezos continue to make mind bending investments in shipping and fulfillment. Love 'em or hate 'em, the USPS has a pretty hefty distribution network already set up. Amazon might just be bringing it into the 21st century.
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