New UPS service with post office delivery?

Discussion in 'UPS Discussions' started by pkgman001, Jan 13, 2009.

  1. pkgman001

    pkgman001 New Member

    I have heard that FedEx SmartPost just picked up the Amazon account, this was all of the stuff that Amazon used to haul to the post office themselves, up to 400,000 shipments per day. UPS tried to get the business but must have gotten underbid. So UPS is thinking of a new service, like Basic, but all of the packages would be USPS, not just rural and po boxes. Don't know if its true or not, but that's what I heard. This came from a customer, a big Smartpost shipper, and he said his UPS rep told him that.

    BLACKBOX Life is a Highway...

    At 4,000 pcs a day, many companies can't get it done in time to hit their shipping cutoff. 400,000 pcs? Where you getting this info from?
  3. drewed

    drewed Shankman

    that would be an over the night increase of like 10% for fedex i doubt theyd be able to handle the increase
  4. dannyboy

    dannyboy From the promised LAND

    Black box

    That is volume that leaves every hour, 24 hours a day. If it makes it in time for the sort, great, if not, it hits the next round of fun.

    Problem is with cutting the proffit so thin, there are fixed costs that UPS has that at FEDEX are cheaper. So they will always find a way to cut the bottom line.

  5. pkgman001

    pkgman001 New Member

    I looked on line, and SmartPost had an average of 777,000 packages a day. That was October thru Nov.
    On the Amazon website, it says they sold $19.8 million items a day in North America, that was July, Aug. If the average order was $60, that would be 329,000 packages a day during July, August and September. Amazon said it shipped 6.3 million packages on it's peak day, December 15th, and that 54% of its business is North America. That would be 3.4 million pkgs. Of course, some of the pkgs must be for Canada, so the SmartPost vol must be lower. But it's still a ton of packages!!! Yes, FedEx probably is making next to nothing on these pkgs.
  6. TSGguy

    TSGguy New Member

    There is a new service...UPS Basic. Its cheaper than ground and only available to very high volume shippers. I believe the volume has to be 500 pieces a week although for an exact number ask one of the area sales people. The service is not guaranteed and UPS can(and I'm assuming will) drop off at the post office to have the delivery completed.

    My understanding is that DHL offered the same thing and we created this as one of the means to get DHL's volume.
  7. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Close but not quite.

    UPS Basic has been around for a few years. It is cheaper than ground, is not a guaranteed service and shippers cannot file claims/DFUs. I do not what the minimum volume is but 500 per week sounds low. UPS Basic is delivered to either the post office or directly to the consignee depending upon the destination zip code.

    UPS Basic has been a solid addition to our service offerings and will continue to grow as shippers look for the most cost effective means to ship their pkgs.
  8. Deeohem

    Deeohem New Member

    My understanding is that Basic can also be deferred. 500 per day is the lower of two numbers that can be bounced around. What I find interesting is that starting with WorldShip 11 (this years model) WorldShip can process UPS Basic (It's a contract-only service, so unless you are qualified to ship Basic, you won't see it) Basic could have been added to WorldShip years ago, but waited until this year. Without knowing corporate plans, I guess that UPS is getting ready to be more agressive in positioning Basic this year.

    BLACKBOX Life is a Highway...

    All I will say is that we don't need to be losing ANY large distributors. Less volume,less work. At the same time, some days you wish Pottery Barn would go over to the other side.
  10. trplnkl

    trplnkl 555

    We are just now starting to get a little Pottery Barn in this area. I already hate them.