Breaking

USPS Lost $163M as E-Commerce Shippers Dump Undeliverables

The Postal Service lost $163 million in revenue over 12 months as e-commerce shippers treat the carrier as a free disposal outlet for undeliverable parcels. The Mail Recovery Center's incoming volume surged 45% through February, with fulfillment centers rejecting packages rather than paying return postage. Commercial shippers accounted for 75% of the 19 million parcels processed by the MRC during the period. Return-to-sender items represented 62% of inbound volume, particularly from Parcel Select users—a discounted program excluding return service. The watchdog agency found the MRC returned less than 1% of missing packages despite management claims of 39% recovery rates. Over 5 million customer complaints about missing packages were filed in fiscal 2025. The USPS estimates collecting postage due and implementing refusal fees could recover nearly $20 million over the next 13 months.