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10A Daily News – Friday, November 23, 2012 Cash-strapped post office tests same-day delivery WASHINGTON (AP) — Emboldened by rapid growth in e-commerce shipping, the cash-strapped U.S. Postal Service is mov- ing aggressively this holi- day season to start a premi- um service for the Internet shopper seeking the instant gratification of a store pur- chase: same-day package delivery. Teaming up with major retailers, the post office will begin the expedited service in San Francisco on Dec. 12 at a price similar to its competitors. If things run smoothly, the program will quickly expand next year to other big cities such as Boston, Chicago and New York. It follows simi- lar efforts by eBay, Ama- zon.com, and most recently Wal-Mart Stores Inc., which charges a $10 flat rate for same-day delivery. The delivery program, called Metro Post, seeks to build on the post office's double-digit growth in package volume to help offset steady declines in first-class and standard mail. Operating as a limited experiment for the next year, it is projected to gen- erate between $10 million and $50 million in new rev- enue from deliveries in San Francisco alone, according to postal regulatory filings, or up to $500 million, if expanded to 10 cities. The filings do not reveal the mail agency's anticipat- ed expenses to implement same-day service, which can only work profitably if retailers have enough mer- chandise in stores and warehouses to be quickly delivered to nearby resi- dences in a dense urban area. The projected $500 million in potential rev- enue, even if fully realized, would represent just frac- tion of the record $15.9 bil- lion annual loss that the Postal Service reported last week. But while startups in the late 1990s such as Kozmo.com notably failed after promising instant delivery, the Postal Ser- vice's vast network serving every U.S. home could put it in a good position to be viable over the long term. The retail market has been rapidly shifting to Internet shopping, especially among younger adults, and more people are moving from suburb to city, where driving to a store can be less convenient. Postal officials, in inter- views with The Associated Press, cast the new offering as ''exciting'' and poten- tially ''revolutionary.'' Analysts are apt to agree at least in part, if kinks can be worked out. ''There is definitely consumer demand for same-day delivery, at the right price,'' said Matt Nemer, a senior analyst at Wells Fargo Securities in San Francisco. ''The cul- ture in retail traditionally has been to get a customer into the store, with the immediacy of enjoying a purchase being the main draw. So same-day delivery could be huge for online retailers. The question is whether the economics can work.'' ridore, analyst with S&P Capital IQ, which tracks the shipping industry. ''But while the Postal Service has the ability to deliver to any address, they are not always known for their speed. To increase their speed might prove to be a much more complex offer- ing than they're thinking about.'' As the Postal Service launches Metro Post and sets pricing, its target con- sumer is likely to include busy professionals such as Victoria Kuohung, 43. A dermatologist and mother of three young children, Kuohung for years has gone online for virtually all her family's needs, includ- ing facial cleansers, books, clothing, toys, diapers and cookware. Kuohung lives in a "Service above Self" extraordinary things! 80+ ordinary local people doing Check out Rotary International www.ContactRotary.org Interested in attending a local meeting? Email: tehama.up@gmail.com Tony & Carmen Kelley 22679 Moran Road Corning, Ca 96021 530-824-2195 Fax: 530-824-0748 He and others said that consumers are a fickle lot when it comes to shipping, seeking fast delivery, but also sensitive to its pricing. Many will order online and pick up merchandise at a store if it avoids shipping charges, or will agree to pay a yearly fee of $79 for a service such as Amazon Prime to get unlimited, free two-day delivery or even purchase a higher-priced item if it comes with ''free'' shipping. ''Customers do like same-day delivery when it gets very close to a holiday or it otherwise becomes too late to shop,'' said Jim Cor- Want to access the LOCAL ADS and REGIONAL NEWSPAPER SALE INSERTS even before they appear in Nor-Cal daily newspapers? Simple! Click SHOPPING on the online front page of www.redbluffdailynews.com and there you are! Know what you're after before you leave home. downtown Boston high- rise apartment with her husband, who often travels out of town for work. The couple says they would welcome having more retailers offer same-day delivery as an option. Still, at an estimated $10 price, Kuohung acknowledges that she would likely opt to wait an extra day or two for delivery, unless her pur- chase were a higher-priced electronics gadget or a spe- cial toy or gift for her son's birthday. ''I prefer not to spend my time driving in a car, fighting for parking, worry- ing about the kids, dealing with traffic and battling crowds for a limited selec- tion in stores,'' said Kuo- hung, as her 1-year-old- out agreements with at least eight and as many as 10 national retail chains for same-day delivery. The mail agency says nondis- closure agreements don't allow it to reveal the com- panies. But given the some- what limited pool of large- scale retailers — they must have a physical presence in 10 or more big U.S. cities to be a postal partner — the list is expected to include department stores, sellers of general merchandise, clothiers, even perhaps a major e-commerce compa- ny or two. twins and 4-year-old son squealed in the back- ground. ''But right now Amazon delivers in two days since I'm a member of Prime, so it would have to be something I can't get at the corner CVS or the gro- cery store down the street.'' Under the plan, the Postal Service is working An Invitation Wyntour Wonderland Holiday Open House Saturday, December 1st, 9am to 5pm Join us for Cookies and Hot Apple Cider. Shop our Gift Shop Sale, Enjoy Festive displays of Living Christmas Trees & Holiday Cheer! 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''We're trying to revolu- tionize shipping; we're not simply trying to get a niche market of consumers,'' said Gary Reblin, the Postal Service's vice president for domestic products. He believes people of varying ages and income levels — young adults who don't own cars, older Americans who are less mobile — will welcome avoiding costly or time-consuming trips to the store. Over 25 years of experience The North State's premier supplier of stoves STOVE JUNCTION 20% OFF select models Tues-Sat 9am-5pm • Closed Sun & Mon Don't be left in the 5A>6! Serving Butte, Glenn & Tehama Counties 22825 Antelope Blvd., Red Bluff Former Holiday Market ALL FRESH WREATHS, ARRANGEMENTS & MORE CHRISTMAS BOUTIQUE 616 CEDAR ST. RED BLUFF Red Bluff Garden Club SCHOLARSHIP Thursday-Friday-Saturday 9:30 a.m. to 6:00 p.m. Dec. 6, 7 & 8 Call 527-4578 or 526-4578 Proceeds go to For Custom Wreaths & Designs High School Scholarships 530-528-2221 • Fax 530-528-2229 www.thestovejunction.com The