Postal

Just in time for Christmas, Amazon.com and the U.S. Postal Service are teaming to make "every day an Amazon prime delivery day." The e-retailer announced Monday that it will be rolling out Sunday delivery services in Los Angeles and New York to customers who are eligible for free, two-day shipping. In 2014, the service will be expanded to the broader U.S., to include such cities as Dallas, Houston, New Orleans and Phoenix. For the cash-strapped Postal Service, news of more deliveries for one of the biggest retailers of the internet age can't be that bad.

eBay on Tuesday said it plans to expand its same-day delivery service, dubbed eBay Now, to 25 cities next year, and it also launched a couple new features for its site that makes browsing more personalized. The company said eBay Now is now live in Chicago, and Dallas will follow within the following weeks. Next year, cities such as London will receive the service, bringing the total to 25. eBay already has offered same-day delivery in San Francisco and New York for about a year. 

Neiman Marcus Group is looking to revitalize its e-commerce business before the holiday season's fervor begins by offering permanent free shipping and returns year-round for all domestic purchases made through neimanmarcus.com and bergdorfgoodman.com as well as at retail locations. By removing some of the burdens that deter consumers from shopping online, Neiman Marcus may see a surge in e-commerce. Additionally, Neiman Marcus Group's move demonstrates that retailers are still adjusting to the digital sphere and determining the right balance between in-store and online.

The U.S. Postal Service proposed on Wednesday to increase its rates more than the standard, inflation-based cap that typically constrains price bumps, citing its financial condition and the uncertainty of legislative action to justify the emergency measure. Known as an "exigent rate increase," the Postal Service Board of Governors must demonstrate to its regulatory body — the Postal Regulatory Commission — "either extraordinary or exceptional circumstances" that require higher rates.

There are problems with the U.S. Postal Service's analysis of postal price elasticities. The study lumps all types of mail together and concludes that raising postal rates will result in a net increase in revenue. The study downplays the nearly 10 to one difference in price elasticity between First Class mail and Carrier Route mail. The study defines price elasticity to mean that a cost increase will result in a short-term net increase in revenue because the revenue increase will be more than the lost mail volume.

In a keynote presentation yesterday at the NEMOA directXchange Fall Conference in Providence, R.I., Nagisa Manabe, chief marketing and sales officer of the U.S. Postal Service, addressed attendees about updates to the USPS’ five-year plan and the urgency of action needed among business mailers.