Netflix Helps Foster Unlikely Marriage between US Postal Service and e-Tail
While it is obvious that “snail mail” was hit hard by the universal adoption of email, ecommerce, and electronic bill paying, the positive effect that internet purchasing has had on the United States Postal Service is often overlooked. Shipping-driven mega-companies like eBay and Amazon have made up for these letter-losses by changing the way that people do their shopping.
Netflix has also played a key role in supporting the US Postal Service, as its pre-paid shipping policy is one of the foundations of its entire business model. This is so much the case that, in January 2006, it hired former US Postmaster General William J. Henderson to be its COO. Since hiring Henderson, Netflix has dramatically increase shipping efficiency, has succeeded in securing discounts by making sure that its mail is pre-sorted, and has eliminated some of the post-lawsuit stigma surrounding its shipping policies and guarantees.
Unless you’re a mailman, this story isn’t really of the greatest consequence. I just happen to find it interesting. For the full story on the general relationship between the Postal Service and e-tailers, click here.