Will USPS survive the tanking of its direct mail revenue?

All has not been well with the U.S. Postal Service (USPS) since the COVID-19 outbreak. Since March, it has curtailed international services in over 100 markets across the world.

While this contributed to a slide in revenue, the USPS faces a real crisis within its bulk mail and advertising segment – its primary revenue source. A dramatic fall in its main revenue stream has led to a state of alarm within the logistics major, as the USPS will battle insolvency later this year if it fails to receive immediate emergency assistance.

Direct mail, which accounts for marketing, advertising and cataloging services, contributed 23% of USPS revenue in 2019. Apart from making up nearly a quarter of USPS revenue, the segment is extremely critical to the growth prospects of a vast number of stakeholders within the consumer-goods sector.


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