The postal service derives a significant amount of its revenue from pitching direct mail to businesses as an effective way to reach customers (4)<p>This whole report from USPS (1) is worth reading but some notable excerpts:<p>"In 2009, 84 billion pieces of first-class mail and 83 billion pieces of direct mail were handled."<p>Invoices and bills constitute a large part of first-class mail (and they continue to move online, become paperless)<p>"One top marketing agency observed companies moving one-third of direct-mail acquisition spending online"<p>Imagine UPS/DHL/FedEx's profits if they went from deliver-on-demand to deliver-to-everywhere-regardless-of-demand:<p>"A key driver to the costs of delivering mail is the obligation to deliver to virtually every mail address, regardless of volume, 6 days a week... These costs are largely fixed so they grow with the size of the network, which has been grown by an average of 1.4 million addresses every year"<p>"Wages and benefits account for 80 percent of operating costs." (And they are directly tied to the people infrastructure required to meet the obligation to deliver mail to virtually every mail address)<p>Obviously, you can't make it up on volume alone:<p>"A First-class stamp costs 44 cents, while other major posts charge an average of 78 cents."<p>(1) <a href="http://www.usps.com/strategicplanning/_pdf/Ensuring_Viable_USPS_paper.pdf" rel="nofollow">http://www.usps.com/strategicplanning/_pdf/Ensuring_Viable_U...</a><p>(2) <a href="http://www.usps.com/postalhistory/PiecesofMail1789to2009.htm" rel="nofollow">http://www.usps.com/postalhistory/PiecesofMail1789to2009.htm</a><p>(3) <a href="http://www.usps.com/householddiary/_pdf/USPS_HDS_FY08_FINAL_PUBLIC_web2.pdf" rel="nofollow">http://www.usps.com/householddiary/_pdf/USPS_HDS_FY08_FINAL_...</a><p>(4)<a href="http://www.usps.com/directmail/resourcecenter/research.htm?from=directmailhome&page=researchwhydirectmailworks" rel="nofollow">http://www.usps.com/directmail/resourcecenter/research.htm?f...</a><p><a href="http://www.google.com/#hl=en&source=hp&q=direct+mail+%2B+USPS+%2B+volume+%2B+billions&aq=f&aqi=&aql=&oq=&gs_rfai=&fp=bcdf8cbbf06dc4f" rel="nofollow">http://www.google.com/#hl=en&source=hp&q=direct+mail...</a>