eBay

buyandsell954 · ‎02-13-2020

This is what happens when you pay these clowns huge salaries and huge pensions.... Just like cities who are all going broke because they cant afford to pay out monster pensions

When does it end? Why aint ebay fighting against this or getting us better discounts??

Offerup and Letgo are starting to look better and better

oldwestgold · ‎02-14-2020

You should list your cost-saving methods here or send them to the PMG. LOL

oldwestgold · ‎02-14-2020

That's incorrect.

lja440 · ‎02-15-2020

@buyandsell954 wrote:
They could trim a lot of fat, its outrageous the Operating expenses is $74.4 billion

The U.S. Postal Service reported operating revenue of $70.6 billion for fiscal year 2018 (October 1, 2017 - September 30, 2018),

Operating expenses for the year were $74.4 billion, an increase of $2.2 billion, or 3.1 percent, compared to the prior year. This was driven by an increase in compensation and benefits of $896 million due to contractual wage increases and increased transportation expenses of $623 million primarily due to higher package volume, increases in fuel prices and higher highway contract rates.

Just where would you trim the fat. In the past decade USPS has closed many offices and sorting facilities. They offered early outs to thousands of carriers close to retirements (ie the ones with the highest wages), filling those routes with ones on a lower pay scale. They lowered the starting salary for carrier subs (making it extra hard to find willing workers) I personally have been without a sub for close to a year despite posting the job 6 times.

The big rate increase last year was to fund the replacement of the LLV fleet. LLV's were estimated to last 20-24 years at their start. They were produced between 1987 and 1994. Maintaining this aged fleet is costing USPS around 524 million a year, replacing them will cost around 4.2 billion. USPS is hoping the new fleet will eliminate some design flaws that the LLV has. The LLVs suffer from a number of design flaws including lack of air conditioning and a heater prone to breaking down. The wheels and suspension are not suited for the all-terrain and all-weather needs of delivering mail and require snow chains during inclement weather. Also, because the windshield fluid line is above the fusebox, LLVs are prone to catching fire, with 42 fires reported in 2017 alone, or 145 between 2014 and 2019. Also almost everyday in my area (Ohio) this time of year. Carriers and the Postmasters struggle to unfreeze the doors. And because there are no windows in the back there have been many accidents with carriers backing and turning around.

I have been with USPS since 2000. I spent 13 years as a sub. (sub time does not work toward retirement) I received my end of year statement on my pension. If I would have to retire or leave the job now I would receive a glorious pension of $106 a month. I will be 60 in 2 weeks.

lja440 · ‎02-15-2020

@totoro470 wrote:
The postal service's lack of flexibility (including cutting personnel, locations, and benefits) isn't the underlying problem though. The "fat" you speak of has been plaguing the post office for decades but it has also been plaguing every other employer- healthcare and fuel costs rise for every business. Also, despite the unions and the lack of flexibility of the post office, they have still found ways to cut costs- the biggest being that they've dropped the amount for career employees from 700,000 in 2004 to 500,000 in 2019 and reduced pay for many non-career positions.

Every business needs to adapt to a changing market and I understand that the USPS can't adapt as much as other businesses but, realistically, they shouldn't need to. Their mail volume has been dropped significantly but they've more than compensated with their package volume and increased rates. So tell me, despite all these countermeasures (cutting employees, raising rates, package increase), why are they still losing so much money? Honestly, I think what pushes them over the edge (into the red) is simply a loss of negotiating power. Why does Amazon get such great shipping discounts? epackets? Why do corporations send junk mail for pennies? It all has to do with the USPS losing its negotiating power. There are too many alternatives for regular mail (email, texts, etc) and it's a race to the bottom for UPS, FedEX, and USPS when it comes to Amazon.

Amazon is simply too big for the USPS to refuse its discounts to. I'm not going to say this is the main cause of our rates going through the roof, but it certainly doesn't help. I imagine that if Amazon had to pay what we pay, the post office would be more than capable of being in the black again. As mentioned before, it would also greatly help if China wasn't considered a "developing" country anymore and actually paid the correct price for shipping.

-We can certainly talk about cutting the fat, maybe restructuring benefits or something, but we have to be careful with how far we're willing to go. If you suddenly privatized the post office (or got rid of the unions) it would likely result in many cutbacks that many Americans probably don't want. Cutbacks like removing Saturday deliveries, holding mail back, and even more extreme measures like completely shutting down certain post offices or forcing people to have PO boxes/communal mail boxes. I also believe people won't deliver mail for $12 an hour without benefits unless the job became much easier. Before I left (7 years ago), they were hiring people for $14 an hour and every single one of them quit because of the stress.

All good points but Amazon really isn't as big of an issue EXCEPT to the delivering Post Offices. As Amazon delivers the packages direct to the delivering PO's same as UPS with Sure Post and FedEx with SmartPost. We did start Sunday Package delivery which is taken care of primarily by the subs which is good they are only really guaranteed their assigned relief day, be that one day a week or by-weekly depending on the route they are attached to. Though a good sub can usually pick up a day or two on other routes or even in other offices most weeks (we need more subs).

johnwhiplash · ‎02-16-2020

Ebay probably does get big discounts, but keeps them for themselves. I ordered a $5.00 item from Amazon and got free overnight shipping. If they can afford to do that, then you know they are getting a big break on shipping with USPS. Ebay is probably getting a similar deal. Just not passing it on to the sellers.

lja440 · ‎02-16-2020

@johnwhiplash wrote:
Ebay probably does get big discounts, but keeps them for themselves. I ordered a $5.00 item from Amazon and got free overnight shipping. If they can afford to do that, then you know they are getting a big break on shipping with USPS. Ebay is probably getting a similar deal. Just not passing it on to the sellers.

Ebay can't get that deal. Your overnight is via Amazon fulfillment NOT their third party sellers. Amazon has fulfillment centers all over the country, and their own fleet of trucks. They deliver pallets direct to the delivering Post Office.

totoro470 · ‎02-17-2020

@tools* wrote:
According to the Inspector General report that I read, ePacket service is revenue neutral. In other words, the USPS does not lose money on the service.

It's possible the rates changed, the report I saw was for around 2012. I know there had been a lot of complaints about the system so they could have adjusted prices. It seems doubtful that they're making much (if anything) based on what I see with my own eyes. You can look at ebay listings and see them shipping from China to anywhere in the US for sometimes half (or much lower) than what it would cost me to ship to my own neighbor. Either the USPS is gouging us or severely subsidizing China.

Here is the report https://www.uspsoig.gov/document/inbound-china-epacket-costing-methodology

ePacket volume and revenue have increased, but the Postal Service still lost at least $39 million during FYs 2011 and 2012. Until accurate costs for ePackets can be identified and used as a basis for pricing, the risk of revenue loss for ePackets remains high.

It may not matter in a few months anyways. Trump's threat kind of ensured that ePackets will have to pay higher rates. Odds are though it will still be nothing compared to what we pay.