Post date: Nov 11, 2013 5:11:37 PM
Reuters Business Report - Good things could come in Sunday packages. Amazon is beginning Sunday delivery at no extra charge to customers in the New York and Los Angeles metro areas. And it'll expand that service toDallas, Houston, New Orleans, Phoenix, and other cities next year. Amazon is teaming up with the U.S. Postal Service in a deal that could significantly boost business for both sides.
It gives Amazon a big leg up in the fiercely contested holiday season that has six fewer shopping days this year. The season accounts for about half of the profits for many retailers. And Amazon's offensive comes just as rivals eBay, Google and Walmart toy with same-day delivery service.
The deal also provides more orders for the money-losing postal service, which has tried to win Congressional approval to halt mail delivery on Saturdays to stem its losses. Its package service has been growing fast, fueled by the growth of online orders. Last year, shipping and packaging services made up nearly one-fifth of its revenue at $11.6 billion.
The irony of this deal: the postal service is getting a boost from the very sector that is killing its main source of revenue, mail delivery.