If Congress allows the U.S. Postal Service to reduce its delivery week to five days in order to save dollars, online retailers will surely feel an impact. Companies such as Netflix that depend on quick and efficient deliveries could take a hit. However, reports have indicated that the USPS lost nearly $3 billion last year, and that number is expected to rise in 2009 (thanks not only to the economy but also electronic communication). If the USPS gets approval to drop back on a day of delivery, more consumers might be forced to pay extra for expedited mailing services (and ultimately, it might deter some shoppers from using the online channel).
According to an analyst quoted in the E-commerce Times, it would be unlikely for Congress to approve the proposal, considering the recession’s effect on business already. Read more about the issue here.
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