USPS and Hallmark launch postage-paid greeting cards

The US Postal Service and card manufacturing giant Hallmark have launched their new line of postage-paid greeting cards – in time for Easter festivities. The PostagePaid Greetings product aims to encourage consumers both to buy more greeting cards and also use the US mail system to send them.

The new line of “everyday” and seasonal cards come with postage already paid by Hallmark, so that shoppers need only sign, seal and send them.

More than 200 varieties of Postage-Paid Greetings cards will be sold in Hallmark Gold Crown stores, Wal-Mart, Walgreens, CVS and other Hallmark distribution locations, the companies said today in a joint statement.

Payment for the postage will come from Hallmark, with 50% paid upfront and 50% when cards are actually mailed by consumers and scanned at USPS sorting offices.

Hallmark is also set to benefit by selling the cards at a premium price – everyday cards will be priced at $3.99, while seasonal cards will range from $2.69 to $3.99.

But, the companies believe consumers are willing to pay a little extra for the convenience of being able to send cards without buying stamps separately.

“In this busy world of ours, Hallmark and the Postal Service want to help make connecting with loved ones a little bit easier,” said Rob Bensman, vice president of strategic alliances at Hallmark.

Easier

For the US Postal Service, pre-paid greeting cards is one way to potentially counter declining mail volumes, fitting in with the philosophy of new postmaster general Pat Donahoe, to make it easier for customers to use US mail services. Last year the USPS worked with Hallmark to test out postage-paid postcards.

The new product line is to be tested out over two years, during which various pricing levels could be tried in order to find the optimum.

The Hallmark Postage-Paid Greetings cards use the Postal Service’s Intelligent Mail barcode, which will allow the cards to be scanned at a USPS facility to complete the payment process.

Postage on the cards will be treated like a “Forever” stamp, with all cards treated as First Class mail from then on, even if First Class Mail rates increase before it is posted.

American consumers spend around $7.5bn to send seven billion greeting cards each year, according to industry figures.

“We know card-sending is an important tradition and receiving cards is as meaningful as it ever was,” said Paul Vogel, president and chief marketing/sales officer at USPS. “We are pleased to work with Hallmark in a way that honors this tradition while providing consumers with added convenience afforded by advanced technology.”