Essay About United Parcel Service And E-Commerce

United States Parcel ServiceStephanie Fryar, Joshua Huber, Antronelle Jenkins,Dion Martin, Kevin WilliamRES/351December 16, 2014Leonardo LedezmaUnited States Parcel Service        USPS from what we all know was the major company used to ship packages all over the world. Finding a post office is easy and convenient as opposed to the other counterparts such as FedEx and UPS not to mention their rates are a little more feasible as well. But recently there has been a decline in personnel using this parcel service due to e-commerce. These days technology rules the world so if you can handle something with a push of a few buttons and get it to where it needs to be you better believe we are going to do it. In the long run this could be bad for our postal service companies, they obviously won’t be making as much money and it could lead to potential job losses. Throughout this reading you will see what my team discovered in issues that e-commerce has caused our postal services.The Issue within the OrganizationThe skyrocket of online sales and e-commerce has been a blessing and a curse for United Parcel Service (UPS). According to Stevens (2014), UPS is only shipping 42% of e-commerce goods, down from 55% in 1999. Even though this is a significant drop, it is safe to say that 42% of shipping from online sales in 2014 is still more profitable from 55% in 1999. UPS is still comfortably leading the market against its traditional competitors: Fed Ex and the United Postal Service. Where the problem lies are the new competitors. Google Inc. is teaming up with retailers such as Target to do same-day deliveries in Manhattan, Los Angeles, and San Francisco. EBay Inc. picks up orders from the stores and can deliver them the same day or the next. Even the Traditional rival, The U.S. Postal Service is aggressively cutting prices to attract big e-commerce companies in time for the holidays. The greatest threat is from Amazon, who stated they will “revolutionize how shipments are delivered to millions of customers. In 2000 Amazon introduced free shipping on orders over 100 dollars. Many at UPS considered this a gimmick to gain market share. The “gimmick proved to be a lasting trend when in 2005 Amazon launched its Amazon Prime unlimited shipping membership for free deliveries within two days for just 79 dollars a year. The challenge is likely to get more difficult, or UPS due to free shipping, and same day delivery Courier services invade UPS´s territory (p. 1). UPS is still number one in shipping within the United States, and there is no place like first place. The question is how does USPS remain number one with all of the competition trying to do the same?Significance of the Problem        UPS is arranging two things to attempt to build edge and exploit climbing interest. Initially, UPS took after FedEx in reporting arrangements to build costs by 4.9% in North America. The new costs will become effective on Dec. 29 for UPS and Jan. 1 for FedEx. Second, both organizations are moving to dimensional weight evaluating for all their Ground bundles. As it were, all bundles will now be evaluated on a blend of weight and size, instead of simply weight. The profits ought to be that retailers will be incentivized to diminish unnecessary bundle volumes, consequently permitting UPS and FedEx to expand yields every volume. The uplifting news is that both organizations are rolling out comparative improvements, so it’s doubtful that one will run the danger of losing critical business to the next.