EBay activates plan to shift more business to UPS and away from Postal Service because of mail delays

From the Washington Post:

The online auction and sales site eBay, one of the U.S. Postal Service’s biggest customers, said it is shifting some of its business to private-sector rival United Parcel Service because of reliability issues with the agency.

“Customers want and expect to receive their packages in the fastest and most reliable way possible, which is why our collaboration with UPS comes at such a critical moment,” eBay vice president Marni Levine, who had previously expressed concerns about the Postal Service’s decreasing on-time delivery rate, wrote in a message to eBay sellers announcing the deal with UPS.

The company said that by the end of September, eBay sellers will be able to print out discounted UPS shipping labels, at a cost up to 62 percent cheaper than typical UPS rates.

For the Postal Service, the loss of eBay revenue could be substantial: A spreadsheet of the Postal Service’s largest customers prepared last spring showed the e-commerce site was agency’s second-largest retail customer, shipping more than 130 million items up to that point in the fiscal year. The USPS generated more than $743 million in revenue from eBay packages in that fiscal year while grappling with a $160.9 billion deficit.