USPS Records Increase in Package Volume, but $5.1B Net Loss
The U.S. Postal Service (USPS) reported that it recorded a 14.1 percent increase in package volume and an 11.1 percent increase in shipping and package revenue for the 2015 fiscal year, but saw a net loss of $5.1 billion. However, this loss looks better than its $5.5 billion loss in 2014.
With the increase in package volume, USPS saw overall revenue increase $1.1 billion to $68.9 billion, but its first-class mail and standard mail volumes decreased by 2.2 percent and 0.3 percent, respectively, this year.
USPS pointed to pension costs and added work hours as the cause of its net loss, according to Multichannel Merchant.
"We achieved controllable income in excess of $1 billion for the second consecutive fiscal year, giving us some limited flexibility to make critical investments in the future of the organization," Postmaster General and USPS' CEO Megan J. Brennan told Multichannel Merchant. "To maintain this success, we will need to continue our efforts to grow the business and drive operational efficiencies. However, we will also need the enactment of legislation that makes our retiree health benefit system affordable and that provides increased pricing and product flexibility."
Online retailers and sellers believe shipping through USPS could be difficult after price hikes take effect in January. According to eCommerce Bytes, the USPS will increase shipping rates on Jan. 17, 2016.
Katie May, CEO of Shipping Easy, told eCommerce Bytes that businesses that plan to use USPS for its shipping purposes should plan early and analyze shipping costs across multiple carriers, zones and weights.
Eric Nash, senior director of online marketing for Stamps.com, told eCommerce Bytes that sellers using Priority Mail with Commercial base-rates to ship packages up to 10 lbs. will experience an average increase of 5.99 percent.