E-commerce shippers exploit USPS to dispose of undelivered packages

The U.S. Postal Service lost $163 million in revenue over a 12-month period because it was unable to track a surge in undeliverable packages from e-commerce shippers that treat the carrier as a free disposal service, according to an inspector general’s report published Thursday.

The number of packages that ended up at the Postal Service’s “lost & found” unit because they couldn’t be delivered or returned to sender increased 45% during the 12-month period ending in February, driven in large part by fulfillment centers refusing the packages, the U.S. Postal Service’s watchdog agency said in the audit.

By refusing undeliverable return-to-sender items, which typically come with postage due, e-commerce companies shifted the cost of disposal to the Postal Service. The Postal Service could increase revenue by almost $20 million over the next 13 months if it collected postage due from direct shippers and began assessing a refusal fee.

The Mail Recovery Center received four times more “dead mail” than it reported over three years and only returned less than 1% of missing packages to customers, compared to management claims it returned 39%, because of flawed methods for measuring volumes and the return rate, inspectors also found.

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Latest comments (2)

  • The Truth•

    The USPS is a leaking ship, with holes of various sizes. If one totals how much these various holes amount to, it’s billions. The immediate problem is that no one seems to be taking any initiative to plug the holes. You would think the PMG would be all over these issues, but it’s silence from the top. His strategy is to ignore the issues and ask for money from Congress. Meanwhile, the USS USPS keeps taking on water and this captain I guarantee will be the first off of the ship. He must go.

    • garbageboy•

      He’s not here to fix USPS!!!
      He’s here to scam the elections. Just like Dejoy was!!!
      He’s done nothing over the last year, except cash a check.
      It’s not tough to fix USPS??
      Too many salaried employees that do nothing.
      I do feel that delivery needs to be made physically easier
      to find and keep new help??
      I learned recently that every PO in New York state
      closes for a one hour lunch each day.
      Maybe the entire country should try that?
      He’s a simp, and I can only imagine how
      he made money at his previous career???

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