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Holiday season may boost US Postal Service revenue

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(Credit: Reuters) This photo shows the company logo of US Postal Service on one of its mail boxes at a post office in California.US Postal Service
November 13
8:55 PM 2013

The struggling US Postal Service (USPS) said the 2013 holiday season may boost its revenues by teaming up with Amazon.com. The company also hopes the surge in e-commerce and the release of a new Yule gingerbread house stamp would encourage people to send packages. This was according to a report published by Reuters.

The holiday season usually keeps the company busy with the card- and gift-sending activities of its customers. The USPS expects a 12% increase in it package delivery during this year's Yuletide season, the report said.

Presently, the postal service is bleeding financially because more Americans have already shifted to online communication and bills payment. The company lost USD16 billion last year. With its team-up with online shopping giant Amazon, USPS has seen a potential source of increased revenue. Online shopping sites need services such as USPS for the delivery of purchase, said the report.

Sunday package deliveries give USPS more chances to grab its share in the USD186-billion yearly e-commerce market. Other competitors including FedEx Corp and United Parcel Service Inc do not offer Sunday deliveries, the report explained.

The National Retail Federation said online revenue in November and December are expected to surge to USD82 billion. This is a 15% increase from the same months in the previous year, Reuters said.

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