History of e-commerce: The emergence of parcel deliveries

In the time of BC (Before e-Commerce), the physical logistics network operated by companies like USPS and UPS is what enabled the independence of the United States, mail order, and parcel delivery

(This is Post #1 of the History of e-commerce series. Read Post #0 here!)

A little bit of US History — Postal services, the foundation for a network of communication and logistics

As much as logistics is essential for e-commerce today, logistics was essential for the thirteen American colonies to gain independence as the United States of America in the 18th century. Before telecommunications, the physical logistics network was also the only long distance communication network.

As the first Postmaster General, Benjamin Franklin transformed a disjointed colonial mail service into an efficient network that could deliver messages from Philadelphia to New York City in just 33 hours. This network not only connected the thirteen colonies but also became a conduit for revolutionary ideas, enabling the colonies to unite and strategize for independence. Franklin’s postal system, a cornerstone of the burgeoning republic, was more than a means of correspondence; it was a radical infrastructure that would eventually underpin the democratic spirit of the nation.

As we look back at the early days of the United States Postal Service (USPS), we uncover the foundational role it played in shaping a new world where information was as critical as any currency.

Beneath the surface of British colonial rule, the seeds of rebellion were nurtured through clandestine communication networks. The Committees of Correspondence, established in the early 1770s, operated as the sinews connecting the collective consciousness of the patriots across the colonies. As tensions escalated, this underground system evolved into the Constitutional Post — America’s audacious answer to covertly discussing revolution while under the watchful eye of British authority.

In 1775, recognizing the necessity of a robust communication system, the Continental Congress officially transformed this network into the Post Office of the United States. This act was more than administrative; it was a declaration of operational independence and a strategic move that would prove critical in the establishment and function of the new government, long before the signing of the Declaration of Independence. It was on July 4, 1776 when the Declaration of Independence was adopted by Congress and September 9, 1776 when the name “United States of America” became official.

The USPS monopoly and emergence of private carriers

The USPS played a monumental role in aiding US independence. Yet, by the 1840s, the cost of sending letters — a privilege largely reserved for the affluent — stirred public dissent, threatening the postal system’s very existence. Competitors that hoped to drive the price of mail down and create a more accessible service emerged, forming a new wave of private carriers. For example, Lysander Spooner started the American Letter Mail Company in 1844 in response to the legal monopoly of the US Post Office.

As numerous private carriers emerged, Congress was spurred into action. They transformed the post from a cost-recovery enterprise to a public service, slashing postage costs, and democratizing communication. This pivotal moment not only averted a crisis but also redefined the postal system as a cornerstone of American society.

The evolution of the United States Post Office into a foundational element of the nation’s infrastructure was both dramatic and transformative. In the East, the familiar sight of mounted couriers and stagecoaches began to fade as the steel lines of railroads offered new speed and reliability. To conquer the vast distances to the West, steamships and stagecoaches carried mail across the Isthmus of Panama, binding the coasts together through communication enabled by the back and forth delivery of mail.

The birth of mail order

As affordable mail opened up physical communication to the masses in the 1840s, it paved the way for mail orders. Mail order, the process of purchasing goods or services via mail delivery, revolutionized retail in the United States by enabling customers, especially those in remote or rural areas, to shop for products without traveling to city stores. Customers would place orders by sending an order form via mail, then the products were delivered directly to the customer’s address or nearby store.

Tiffany & Co. pioneered the mail order catalog in the U.S. with the launch of their first Blue Book in 1845. This catalog, showcasing exquisite handcrafted jewelry, became immensely popular among affluent circles and remains in publication today, making it the longest-running catalog in the country.

The electric telegraph, telegrams, and messengers

The landscape of American communication underwent a monumental shift with the advent of the telegraph. On January 11, 1838, Samuel Morse dispatched the first telegram in the United States across a two-mile stretch at Speedwell Ironworks near Morristown, New Jersey. This groundbreaking event marked the beginning of a new era in rapid communication. However, it wasn’t until 1844 that Morse dramatically showcased the telegraph’s potential by transmitting the message “WHAT HATH GOD WROUGHT” from Washington D.C. to Baltimore, a distance of 44 miles.

This innovation brought about a paradigm shift. Suddenly, messages that took days or weeks to deliver could be sent in minutes. The telegraph system rapidly expanded, with lines crisscrossing the nation, connecting distant cities and towns. Telegrams became the go-to method for quick, long-distance communication, revolutionizing news dissemination, personal correspondence, and of course, commerce.

Messengers played a crucial role in this new communication ecosystem. They bridged the gap between the telegraph office and the recipient’s doorstep, ensuring the speedy delivery of telegrams. This network of messengers, often young boys on bicycles or on foot, became a common sight in cities, symbolizing the pulse of a rapidly modernizing society.

The telephone and the popularization of mail orders

Originally, mail orders were predominantly conducted through sending order forms in the mail. However, the introduction of the telephone provided a new, more immediate channel for placing orders.

The first successful demonstration of the telephone by Alexander Graham Bell in 1876 opened new avenues in communication. By the 1880s and 1890s, the telephone network had started to spread across the country, becoming increasingly accessible to businesses and consumers alike. With the telephone’s emergence, customers could place orders directly by calling merchants. This method was quicker and more convenient than mailing an order form and waiting for a response. The immediacy of telephone orders accelerated the processing and fulfillment of customer requests, enhancing overall customer satisfaction and efficiency.

Retailers that still exist today such as Sears saw their debut as mail order businesses.

In 1888, Richard Warren Sears started a business selling watches through mail order catalogs in Redwood Falls, Minnesota. By 1894, the Sears catalog had grown to 322 pages, featuring sewing machines, bicycles, sporting goods, automobiles, and a host of other new items. Organizing the company so it could handle orders on an economical and efficient basis, Chicago clothing manufacturer Julius Rosenwald became a part-owner in 1895. By the following year, dolls, refrigerators, stoves, and groceries had been added to the catalog. Sears, Roebuck and Co. soon developed a reputation for high quality products and customer satisfaction. By 1895, the company was producing a 532-page catalog with the largest variety of items that anybody at the time could have imagined. In 1893, the sales topped 400,000 dollars. Two years later, they exceeded 750,000 dollars.

The advent of parcel deliveries

The dawn of the 20th century in America witnessed a pivotal transformation in the landscape of commerce and logistics, with the burgeoning popularity of mail orders setting the stage for a significant innovation: parcel delivery services. Prior to 1913, the United States lacked a comprehensive domestic parcel service, a gap that was becoming increasingly apparent as mail-order businesses like Sears and Montgomery Ward grew in popularity, fueling a growing demand for an efficient means to ship physical goods to consumers across the nation.

The introduction of Parcel Post by USPS in 1913 marked a watershed moment, revolutionizing not only how goods were transported, but also how consumers engaged with retailers. This era also saw the emergence of companies like UPS, a company that started off as a messenger business but quickly recognized the untapped potential in parcel delivery, and stepped in to shape the logistics and delivery landscape that is so integral to our daily lives today.

UPS was first founded as the American Messenger Company in 1907 by teenagers Claude Ryan and Jim Casey. They started the business with a $100 loan and a shop set up in a cellar of Ryan’s uncle’s tavern, running errands and delivering telegrams. As Parcel Post service began in 1913, they also began to focus on parcel delivery. In the same year, the American Messenger Company merged with a competitor and was renamed to Merchants Parcel Delivery. They had also acquired a Model T Ford as its first delivery vehicle. In 1919, Merchants Parcel Delivery was renamed the United Parcel Service, commonly known today as UPS.

As we conclude our exploration of the early history of USPS, the rise of mail orders, and the evolution of communication from telegrams to telephones, we see a clear trajectory leading to the digital age. This journey from the founding of USPS to the establishment of parcel delivery services like UPS has set the foundation for a more connected and efficient world, bridging distances and expanding opportunities. The increased accessibility and convenience of delivered goods has changed how consumers buy and receive products.

In the next post, I’ll delve into the pivotal years of the 1960s to 1980s, a period that paved the way for the first forms of e-commerce before the web.