2010 Comprehensive Statement on Postal Operations - USPS.com

Chapter 2: Products and Services
Periodicals revenue was $1.9 billion, with a volume of 7.3 billion
pieces. Total Periodicals revenue decreased 7.8 percent and
volume decreased 8.0 percent. The Periodicals volume decline
closely matched that of last year as other media channels, such as
the Internet, continued eroding public reliance on publications for
news, information, entertainment, and advertising. Pricing strategies
and product innovations focus on reducing the number of postal
handlings, increasing the volumes that mailers deposit closer to
destination addresses, and modifying preparation requirements as
technologies change.
PACKAGE SERVICES
Package Services is an economical class for sending items up to
70 lbs. (except Bound Printed Matter, which has a 15-lb. limit) not
required to be sent as First-Class Mail, prepared as Customized
Market Mail, or entered as Periodicals. Package Services is primarily
used to ship merchandise and mail catalogs and other bound items
too heavy to be sent as Standard Mail. Package Services may
receive deferred handling and is not sealed against postal inspection.
The service standards for all Package Services products are 2 to
8 days in the 48 contiguous states, depending on distance and level
of presort.
It consists of five products with distinct prices and preparation
requirements that meet an array of retail and commercial uses:
Single-Piece Parcel Post, Bound Printed Matter Flats, Bound Printed
Matter Parcels, Media Mail/Library Mail, and Inbound Surface Parcel
Post (international).
Single-Piece Parcel Post is generally the lowest priced general
shipping service for retail parcels weighing one pound or more.
Bound Printed Matter, Media Mail, and Library Mail, available
with single-piece and presorted prices, are content-restricted
products. Bound Printed Matter may be used only for permanently
bound printed materials such as catalogs and books. Media
Mail and Library Mail may be used only for books, sound and
video recordings, certain films and film catalogs, printed music,
manuscripts, media, and other eligible items. Only qualified schools,
colleges, libraries, and similar organizations may use Library Mail.
Package Services revenue was $1.5 billion, on 658 million
pieces. Revenue decreased 10.0 percent and volume decreased
10.0 percent. The volume decline reflects the impact of the overall
economy on the package industry and the benefits of Priority Mail.
ADDITIONAL SERVICES
The Postal Service offers several additional services, generally
designated as special services and ancillary services. They are
purchased for a fee as a stand-alone service or as a feature that
may be added to a mailing. Special services include Post Office
Boxes and Postal Money Orders; ancillary services include those
that provide added security (such as Registered Mail, Insured
Mail, and Collect on Delivery), information about delivery (such as
Certified Mail, Return Receipt, Delivery Confirmation, Signature
Confirmation, and Confirm), forwarding and return of mail, and
address information.
Post Office Box service is available as an alternative to free carrier
delivery or general delivery. Fees vary by box size and facility
location. The service generated $910 million in <strong>2010</strong>.
Insurance covers loss or damage of a mailable article based on its
actual value for domestic and international packages. All Insured
Mail labels are barcoded and only items valued over $200 require
the recipient’s signature. Click-N-Ship customers who purchase
shipping labels via usps.com can add domestic insurance to Express
Mail and Priority Mail purchases; eBay customers can add insurance
to Priority Mail, Express Mail, First-Class Mail, Parcel Post, and
Media Mail purchases.
Merchandise Return Service (MRS) is a premier end-to-end returns
solution using the Postal Service network to move packages to their
destination. MRS permit holders pay the postage and any special
service fees on parcels returned by the permit holder’s customers.
Mailers continued to use First-Class parcels with MRS as a lowcost
solution for the return of items weighing 13 ounces or less.
First-Class Mail parcels represent an unmatched price for delivery
anywhere in the U.S. For time-sensitive returns weighing 1 pound or
more, Priority Mail continued to be a strong offering with 2 to 3-day
service and enhanced visibility in transit. Merchants pay full postage
for each package returned based upon weight, destination, and the
level of service they select or charges can be passed to a third-party
permit holder upon delivery.
Shipping Services
Shipping services products include Express Mail, Priority Mail, Parcel
Select, Parcel Return Service, Premium Forwarding Service, Global
Express Guaranteed (GXG), Express Mail International, Priority Mail
International, and M-bags, as well as negotiated service agreements
and several other international services including international
ancillary services. Shipping services, which represent 13 percent
of revenue but less than 1 percent of volume, face considerable
domestic and international market competition. As a group, shipping
services revenue was $8.7 billion, with a volume of 1.4 billion
pieces. Revenue increased 5.2 percent, while volume increased
2.8 percent.
Prices for shipping services are adjusted annually each January —
consistent with industry practice — which encourages comparisons
that show the affordable options offered by the Postal Service. Most
shipping services product prices changed on January 4, with some
related classification changes to meet new customer requirements.
EXPRESS MAIL
Express Mail, the fastest domestic postal product for time-sensitive
items, is a guaranteed overnight or second-day delivery for urgent
<strong>2010</strong> <strong>Comprehensive</strong> <strong>Statement</strong> on Postal Operations | 11