Tag: North America

The Changing Mailing Landscape: 2007 Postal Rate Case

Posted by | Apr 23, 2007 | |

Catalogers and multichannel retailers are facing a number of key issues in the marketplace. But the one issue that is currently on the minds of all who mail flats and catalogs is the huge postage increase scheduled to be implemented May 14. Unless the Postal Rate Commission reduces its proposed increase to flats mailers (which, if it occurs will most likely not happen until sometime after May 14), most flats mailers will see postage increases that will exceed 20%.

In addition to these documented increases, mailers will also face other hidden increases that will go into effect on Aug. 1, when new address standardization rules will have to be implemented. An example of this type of increase is that today, records that fall within valid street ranges but are not a valid delivery point are +4 coded. As of Aug. 1, these will no longer be +4 coded. This change will result in more records not receiving a +4 code, thus increasing postage while reducing delivery and correspondingly, response.

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USPS seeking mailer input on new law

Posted by | Apr 23, 2007 | |

The U.S. Postal Service is asking mailers for input on the Postal Accountability and Enhancement Act.

The act, enacted on Dec. 20, 2006, strengthens the authority of the renamed PRC and changes the form of regulatory oversight in many respects. In addition, it grants the USPS more autonomy in setting rates, particularly for its competitive products.

However, the USPS’s ability to increase rates for market-dominant products is limited by changes in the Consumer Price Index. Moreover, the legislation streamlines the USPS’s ability to introduce new postal products. The Act, the provisions of which must take effect by June 2008, also provides for predictable annual price changes.

The USPS said it is currently working with the PRC on the best time to implement these price changes, and is it is seeking feedback from the mailing community on the subject.

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Mail remains safest way to communicate and share information

Posted by | Apr 23, 2007 | |

Mail remains the safest way to communicate and share information, and represents the smallest threat to identity theft.

“The President’s Identity Theft Task Force,” released by the U.S. Department of Justice (DOJ) and U.S. Federal Trade Commission (FTC), is a strategic plan for government agencies to follow in efforts to combat identity theft. The FTC reports that less than 4 percent of all identity theft can be traced to the mail. The U.S. Postal Inspection Service served on the task force.

The Postal Service already has in place the top four recommendations included in the report:
Replaced Social Security Numbers with unique Employee Identification Numbers. Social Security Numbers are the most valuable commodity for an identity thief.
Developed systems to quickly alert private sector companies and consumer information should a security breach occur. The Task Force recommends that national standards be established for private sector entities as well.
Sponsored an awareness campaign for consumers, partners, companies and employees to warn against identity theft; and
Establish a National Identity Theft Law Enforcement Center, similar to one created by the U.S. Postal Inspection Service, that coordinates efforts and information efficiently.

Two years ago, the Postal Inspection Service created the Intelligence Sharing Initiative, a website that allows inspectors and fraud investigators representing retail and financial institutions, as well as major mailers, to share information relating to identity theft, as well as financial crimes investigations and prevention methods. This effort came more than 15 years after the Inspection Service began a Credit Card Mail Security Initiative to work more effectively with the credit card industry to reduce fraud losses.

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USPS – Postal Service going private?

Posted by | Apr 23, 2007 | |

The U.S. Postal Service has intentions to increase the number of areas contracted out with independent delivery service operators.

Known as the Growth Management Program, the Postal Service is slowly allowing more delivery from private contracts, who would then subcontract employees to deliver mail in areas throughout the United States.

“We are concerned the American public will see a difference in service,” said William Young, president of the National Association of Letter Carriers.

While many people don’t have a relationship with their mail carrier, Young said there are many more concerns associated with the idea.

Safety issues, late mail, dedication and a carrier’s background are just a few of the issues that could affect the public if the Postal Service allows more privately contracted carriers.

But the Postal Service disagrees, saying the concept of contracting out within the department has always existed.

“Contracting new deliverymen is nothing new. We’ve been doing it since the beginning of the Postal Service,” said Richard Maher, USPS spokesman.

The increase in contract use however, comes from the growing number of addresses throughout the country.

This past year alone, there were 2 million new addresses, he said. But only about 10 percent of those are contracted.

Currently, about 2.5 percent of the country’s routes are handled by contract personnel. But Maher said this is just one type of delivery the Postal Service is considering.

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eBay Seller’s Go Postal Over USPS Impending Rate Increase

Posted by | Apr 23, 2007 | |

World’s largest eBay seller’s group, Dallas eBaybes & eMales, will host a meeting with USPS officials to discuss looming rate increases. The meeting will be held at 6:00PM on Monday, April 23rd in Plano, Texas. The success of an eBay seller is directly affected by shipping costs and many eBay sellers are extremely upset about the impending doom of the USPS changes, which include eliminating some of the services completely.

eBay is a business partner to USPS and the majority of eBay sellers rely on the post office to ship all of their packages, as it has always been the most affordable option. As of May 14th, many eBay sellers may decide not to go postal after all and switch to one of the competitors, like FedEx, UPS or DHL. eBay sellers bring billions of dollars in revenue to the USPS, so it’s very important to their bottom line to maintain that partnership.

The Dallas eBay group has been together since 2002, meeting once a month to discuss eBay and how they can improve their bottom line and make a difference for all eBay sellers. Tonight’s meeting should be very interesting, heated and hopefully, none of the attendees will go postal.

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