USPS of historic growth of parcels is old news but what the new trend is the USPS getting parcels directly from international sellers.
USPS International offer explained:
There are several ways to access the USPS for last mile delivery to the USA
- Global Direct Entry
- Direct via local post offices (who ship via the postal system)
- Postal re-sellers such as Pitney Bowes
- Parcel Select partners including mail subsidiaries of UPS, DHL and FedEx
The "past is prologue"?
The post office clearly points to the opportunity (i.e. necessity) for change in gaining business directly from international sources. The direction of how to increase revenue and improve margins.
The action is via Section 321
The USA has - by far - the most open market for online orders shipped to the USA. The "section 321" and duty free threshold of US $800 is well known but the processes often not fully understood.
Section 321 processes to the USA Include:
- Express Consignment clearance / ECCF
- Cargo clearance using express processes (CFS)
- Border entry via Canada
- Section 321 Type 86 (via traditional broker interface systems)
Millions of global on line business depend on USPS for final mile delivery via their national post office and direct airfreight parcel ECCF, CFS, Cross Border and type 86 import solutions.
Advice to Shippers
Strong supply chain solutions involve multiple entry points and methods of clearance. Keeping express processes as a backup solution during peak periods to ensure goods are not delayed.
USPS, FedEx, UPS + Amazon + ?
Up to now, US private delivery companies (who themselves enjoy a sort of monopoly) have been friend-enemies of sort. FedEx, UPS, USPS are both competitors and partners and together control virtually 100% of US parcel delivery market. Although Amazon is certainly becoming a force, FedEx is on record as saying they do not consider Amazon to be a peer competitor.
The USPS is an important customer of FedEx and UPS for wholesale airlift. Alternatively, the FedEx (Smart Post) and UPS (SurePost) are an important customer of USPS Parcel Select last mile delivery services. The US "big three" eco-system is being disrupted as e-commerce continues to grow, Amazon , and as the USPS competes more directly for parcel delivery.
As parcel cost increase, so must the method of shipping
Another benefit of multiple port importing is to lower the last mile delivery costs. Often the incremental cost difference of shipping to New York versus Dallas - for example - is minimal. But the differential in last mile delivery costs can be substantial.
Global Community
Thanks to new United Postal Union rules, the USPS has much more control over what they charge for "foreign treaty mail." The USPS now has greater control over what they charge to other post offices and are gaining more control by offering direct shipping options to global sellers.
Global Direct Entry:
Just as the USPS is attempting to attract more retail business in the US, their Global Direct Entry is a service that attracts business direct from their overseas locations. International e-commerce shippers can send pre-labeled direct to US gateways for express entry into the USPS network. With global cross border e-commerce growing faster than domestic e-commerce, it is essential that the USPS is able to offer their services direct to international shippers.
International online e-commerce merchants develop low cost direct import via high volume section 321 processes.
info@jetworldwide.ca
