Remember back in the olden days, circa 2015, when we had to wait six whole days to get our Amazon orders delivered? By 2018, the delivery window had shrunk to a barely tolerable three days (I joke).
And today? The average delivery time is closer to two days, according to a 2024 Science Direct report.
💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter💰💵
The expectations around e-commerce delivery have certainly changed in a short time, and increasingly, plenty of us want our goods delivered on the same day we order them.
The demand can be crushing for retailers and carriers, including small businesses that are trying to compete with the Amazons and Walmarts of the world. They’re looking for ways to deliver quickly at an affordable cost.
The United States Postal Service (USPS) may be a much-maligned institution, often criticized being slow and overpriced, but this time it’s trying to be a problem-solver.
To meet consumers’ expectations, the USPS has quietly launched Priority Mail Next Day, a new service aimed at online retailers and small businesses.
The USPS is increasing its fast-delivery options.
Image source: Ngan/AFP via Getty Images
USPS makes moves to compete with FedEx and UPS
The new service allows businesses to get their goods into the hands of their customers within a day.
In order for packages to be eligible for the next-day service, the packages (20 pounds or less) have to be delivered to a USPS processing center by 6 p.m. If they arrive after that cutoff, they’ll be delivered in two days.
Priority Mail Next Day is available by contract only, meaning it’s for businesses with an agreement with the USPS. It is currently available in 62 U.S. markets with plans to expand.
Related: Major logistics and trucking company files Chapter 11 bankruptcy
Despite its limited rollout, USPS officials hinted at nationwide ambitions for Priority Mail Next Day, according to a USPS informational webinar. Since each contract is based on a business’s volume, the USPS does not publish shipping rates for the new service.
The launch of Priority Mail Next Day highlights the intensifying competition among the “big three” carriers: USPS, FedEx (FEDEX) , and UPS (UPS) . All three are racing to serve the growing needs of e-commerce sellers, particularly in regional and last-mile delivery zones.
While FedEx and UPS have long dominated premium overnight shipping, their services often come with complex rate structures, fuel surcharges, and rural delivery fees, all costs that eat into retailer margins.
USPS is building on the success of its Ground Advantage program
USPS is working to position itself as the simpler and more cost-effective alternative to UPS and FedEx, without frills or complicated fees.
The new Priority Mail Next Day is an extension of the USPS Ground Advantage program which launched in 2023 and offers a two- to five-day delivery window. Unlike the new overnight service, anyone can ship via Ground Advantage, no contract required.
Both options make USPS attractive to small and mid-sized online retailers that need reliable regional shipping but lack the volume to negotiate steep discounts from FedEx or UPS.
More retail:
Aldi releases viral Trader Joe’s item that is always out of stock Home Depot, Lowe’s rivals strategic growth plan Trader Joe’s making huge mistake not copying Walmart, Target
Nearly 70% of consumers say fast shipping influences their decision to complete a purchase, according to Digital Commerce 360, and Capital One Shopping says 80% of consumers expect retailers to offer same-day delivery.
This growing expectation is putting increased pressure on retailers and carriers alike, so businesses, including mom-and-pop independent retailers, are constantly searching for shipping solutions that meet customer expectations without breaking their logistics budgets.
One issue that is likely to increasingly plague retailers and that no carrier can solve: the faster the delivery time, the more likely the products are to be returned. That’s according to a Science Direct study that looked at how shorter delivery times affect returns.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
