The USPS third quarter results are in, reporting a total revenue of $17.1 billion, which is an increase of $402 million, or 2.4 percent, compared to the same quarter last year. The USPS’s net loss for the third quarter came in at $1.5 billion. This is a decline in net loss, coming in at $651 million less than the same period last year.
Postmaster General and CEO, Megan J. Brennan, states, “The root cause of our financial instability is a flawed business model that is imposed by law. We encourage the Congress to engage in a broad public policy discussion and pass postal reform legislation, support legislation under consideration in the current Congress which would provide immediate flexibility to the organization, allow the Postal Service to invest in our future and continue to provide the prompt, reliable, efficient and universal service the public expects.”
CEO Megan J. Brennan also stated that with execution of the postal reform legislation, pursuing postal management action and regulatory changes to include a tolerant pricing system, is imperative.
Total operating expenses declined by $240 million, or 1.3 percent, for the third quarter, in comparison to the same quarter last year. Chief Financial Officer, Joseph Corbett, shared these thoughts on the third quarter loss: “After adjusting for actuarial changes related to retirement and retiree health benefit plans, the quarter results reflect ongoing trends. The secular declines in mail are somewhat offset by package growth, and labor productivity continues to improve. However, absent changes to our business model, net losses are expected to continue.”
South Dakota vs. Wayfair
In June of this year, the U.S. Supreme Court made a ruling in the case of South Dakota vs. Wayfair, in favor of South Dakota, which overturned Quill. What does this mean for catalogers?
Collecting sales tax will now be required in e-commerce, which includes sales conducted via catalog, phone, email, or U.S. mail.
Any business that sells goods may be affected.
Many states are passing versions of South Dakota’s law or implementing existing ones. South Dakota will begin collecting on November 1st, along with the state of Colorado. Check in with the ACMA about how you can help influence congress to protect remote sellers.