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USPS Seeks Competitive Classification for Commercial First-Class Parcels

February 24, 2011
WASHINGTON, DC—Feb. 24, 2011—Recognizing that all parcel delivery services operate in a competitive environment, the U.S. Postal Service today asked the Postal Regulatory Commission (PRC) to reclassify Commercial First-Class Mail Parcels as a competitive product.

Today’s filing is a formal request to move Commercial First-Class Mail Parcels from the market-dominant product list, and add “Lightweight Commercial Parcels” to the competitive product list.

The filing proposal does not affect retail single-piece First-Class Mail Parcels.

“This product serves a highly competitive marketplace, with many participants offering similar products,” said Gary Reblin, vice president, Domestic Products. “By moving to a competitive product classification, we have greater flexibility to make this offering more attractive to commercial shippers.”

Commercial First-Class Mail Parcels are largely used for fulfillment purposes by businesses selling lightweight merchandise. Starting April 17, qualifying customers will receive Commercial Base pricing for parcels weighing 13 ounces or less and can receive Commercial Plus pricing for parcels weighing less than one pound.

The reclassification proposal follows a similar request filed Aug. 16 with the PRC to move some Standard Mail Parcels from the market-dominant category to the competitive product list.

Separately, the Postal Service filed a request today with the PRC to introduce “Adult Signature,” a new competitive service allowing customers to request the verified signature of an adult upon delivery.

The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.

About the U.S. Postal Service
A self-supporting government enterprise, the U.S. Postal Service is the only delivery service that reaches every address in the nation, 150 million residences, businesses and Post Office Boxes. The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations. With 32,000 retail locations and the most frequently visited website in the federal government, usps.com, the Postal Service has annual revenue of more than $67 billion and delivers nearly 40 percent of the world’s mail. If it were a private sector company, the U.S. Postal Service would rank 29th in the 2010 Fortune 500. Black Enterprise and Hispanic Business magazines ranked the Postal Service as a leader in workforce diversity. The Postal Service has been named the Most Trusted Government Agency six consecutive years and the sixth Most Trusted Business in the nation by the Ponemon Institute.

Source: Press release.


 

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