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While the escalating costs of sending goods across the ocean have created headlines, continued rate hikes and fees from FedEx and UPS are more quietly continuing to increase the cost of last-mile delivery. Are the climbing rates and fees from shipping carriers a temporary or long-term problem for online sellers and e-commerce profitability?
Retailers are expected to see blockbuster sales online this holiday with shoppers still nervous about in-store shopping, but a side effect may be escalating delivery costs. Is raising prices or increasing shipping fees the better option for retailers to offset likely higher delivery costs this holiday season?
FedEx will soon start delivering packages through its ground service seven days a week to more fully support booming e-commerce growth. Will seven-day residential delivery significantly raise the bar on same-day, next-day or other delivery expectations?
Last week, e-commerce providers were hit by a double whammy of negative news. Will retailers be able to offset, or will they have to absorb, higher costs related to postal rates and warehousing?
UPS has begun testing a delivery truck that acts as a mobile drone base, Business Insider reported. The vehicle features a drone “nest” on the roof which houses a drone capable of flying for 30 minutes and carrying 10 pounds. Can UPS use drone technology to stave off incursions by others into last-mile logistics?
The United States Postal Service is making fresh food deliveries for Amazon in San Francisco as part of a two-month test. Do you expect Amazon’s test of grocery deliveries with the U.S. Postal Service will be successful? What strengths and weakness does USPS bring to the grocery delivery game?
Authenticating rumors in the marketplace, Amazon is indeed testing its own delivery network in the U.S., according to an extensive report last week in The Wall Street Journal. How important is it for Amazon to eventually establish its own wide scale delivery network? Is the over-reliance on major carriers a weakness in the e-commerce model for big online retailers?
Amazon.com’s same-day delivery service may not be the greatest challenge to its brick and mortar competitors. Stores perhaps should be more concerned about the online giant’s ability to deliver packages seven days a week through its partnership with the U.S. Postal Service. What poses the biggest threat to brick and mortar competitors of Amazon.com?
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