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Small Businesses Feel Crunch Under Slowdown of USPS Mail Service

  • Small businesses rely heavily on the U.S. Postal Service for shipments
  • Delays occasioned by the pandemic and recent operational changes under the Postmaster General result in extra fees, forced refunds, and harm to reputation
  • E-commerce groups push back against proposed hikes to shipping prices

Delayed mail delivery through the U.S. Postal Service is creating challenges for both big e-commerce companies and smaller businesses that rely primarily on the service for their deliveries. The slowdown in USPS deliveries has been a result of both the COVID-19 pandemic and operational changes implemented by Postmaster General Louis DeJoy.

The USPS is used by both small businesses relying on their own websites for e-commerce as well as giants such as Amazon and eBay that use the service for “last mile” delivery. Delays in mail delivery can impact the flow of supplies to a business, force business owners to rely on costlier shipping options or refund payments if a product is not delivered on time, and potentially harm a company’s reputation.

President Donald Trump has frequently called for the USPS to sharply increase its shipping prices, arguing that online retailers are not being charged enough for delivery. Numerous e-commerce companies have pushed back against this proposal, saying affordable delivery prices are necessary to ensure customer satisfaction and keep companies from passing on costs to the consumer.

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