Tuesday, November 12, 2013

The Amazon and the Eagle

imageYou might have heard of the USPS’s financial woes. With $65 billion revenue in 2012 and a $20 billion hole as budget gap – it is not going to be easy. Everything has been on the table, from cutting Saturday deliveries to delivering booze! Now of course, Amazon ties up with USPS for deliveries on Sunday. While no financial details are available, will this save USPS or at least make a little more viable?

This really seems like a great symbiotic relationship. Amazon needs to keep their edge on their ability to deliver fast – lack of physical stores means missing on instant gratification when their customers buy that new shiny thing! Short of putting up stores, Amazon has tried every other possible trick to make that instant gratification happen, at least as quickly as humanly possible and make it really affordable! Amazon Prime, same-day delivery, and now delivering on Sundays – all point to their innate desire to provide that (near)-instant gratification.

The real question that I have: Why does Amazon not tie-up with USPS to serve as their delivery (kiosks) and return locations as well? This may mean more work like integrated systems, but it provides the most logical next step to benefit both the parties. Amazon gets over 31,000 USPS locations for people to pick up their packages (and not worry about being home when the delivery truck shows up) and create a simpler return experience for their customers where they don’t have to worry about getting their return authorization, packing, and sticking the correct labels on correct boxes! Of course, USPS gets a chunk of growing parcel business with a reliable partner. What is not to like?

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© Vivek Sehgal, 2013, All Rights Reserved.

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