![]() The Postal Service clearly boasts many strengths as a parcel carrier. While the USPS will not disclose details of customized programs, third-party sources report discount ranges of 5% to 20% off retail pricing for Express, Priority and Global Mail products. The USPS’s initial marketing approach to negotiated agreements was to provide incentives based on volumes. Other recent innovations include an asset recovery service, soft packaging for Priority Mail for items such as apparel and other soft goods, and a new induction process for Priority Mail. Through enhancements to Priority Mail Open and Distribute services, drop-shippers can send other classes of mail in two days at a lower cost. In addition to creating new competitive pricing tiers, the USPS has developed customized shipping services, including a new letter-size overnight envelope as well as an Express Mail overnight service. Shippers can qualify for Commercial Plus discounts on Priority Mail (100,000 pieces/year) and/or Express Mail (6,000 pieces/year) and receive discounts immediately instead of waiting until the end of the quarter. Commercial Plus replaces the quarterly volume rebate program. Standard pricing at Post Office retail outlets Commercial Baseĭiscounts for online users (approximately 5% off retail for Express Mail, 4.7% for Priority Mail) Commercial Plusĭiscounts for high volume shippers (approximately 14.5% for Express Mail, 7% for Priority Mail). 12-1/4″ × 12-1/4″ × 6″ - This “Large” box is 50% larger than other flat rate box optionsĮffective January 2009, the USPS unveiled competitive pricing tiers for Express Mail and Priority Mail as follows: Retail.Flat rate products are available in multiple sizes and shapes: The USPS has developed unlimited weight products that feature predetermined rates regardless of weight or destination. Here are a few more of the specific products and services the Postal Service is dangling before parcel shippers. Retail pricing ranges from $1.17 to $3.21 - a bargain compared to $4.57 (plus fuel and other surcharges) for UPS and FedEx Ground service (1 lb., Zone 2 minimum charge). ![]() or less (First-Class Mail Package) with delivery service standards within three business days. The USPS is also the only carrier that offers pricing for parcels that weigh 13 oz. Free Saturday delivery amounts to 52 additional delivery days a year. The prospect of Saturday delivery is another bonus - assuming the Postal Service sticks with its six-day delivery week. It offers free package pickup six days a week, and has the most package drop-off points in the country. For one, it already goes to every door, every day.Īnd USPS is the only carrier that can put items in mailboxes, P.O. There’s no question that the Postal Service has some unique advantages. And it’s going after the express and ground business market segment in a major way. Thanks to the Postal Accountability and Enhancement Law of 2006, which lifted the mandate for uniform pricing for all, the USPS now has the autonomy to develop competitive shipping products and pricing initiatives. Of its $75 billion in fiscal 2008 revenue, USPS generated about 11%, or $8.35 billion, from shipping services. ![]() Postal Service to your carrier mix to help drive down costs. What can you do about it? You might consider adding the U.S.
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