USPS Parcels Whats USPS Bringing Navigating the Market
USPS Parcels What’s USPS Bringing “Navigating the. Market? Options” to the B 2 C Jesus Barona Mgr. , Business Alliances U. S. Postal Service April 2013
Topics § e. Commerce trends § What are my options? § Lightweight § Expedited § Ground § Returns done right § How to engage USPS § Conclusion - Why USPS?
e. Commerce Market forecast ü Online retail spending to increase 62% within three years ü By 2016, U. S. consumers will be spending $327 B online each year Forrester Research
e. Commerce Shipping trends US Retail e-Commerce Sales, 2010 – 2016 ($B, % ch. ) com. Score Businesses are selling more products online and shipping them to the home!
e. Commerce goods being shipped Digital content Consumer electronics Flowers, greetings & misc. Computers & peripherals Apparel & accessories Event tickets VERY STRONG GROWTH 15% or higher Consumer packaged goods Jewelry & watches Home & garden Books & magazines Sport & fitness Office supplies Video games & accessories Furniture & appliances STRONG GROWTH 10– 14%
e. Commerce Shipping challenges for e-tailers Consumer expectations Free shipping — the new ‘normal’ Mobile access Delivery choices Returns
e. Commerce E-commerce Shopper Needs
e. Commerce shipping market USPS share growing § USPS core strengths § Every house / every day § Pickup and delivery § Outbound & returns § Lightweight advantage § Consumer access § NO hidden surcharges/fees e. Commerce $202 B annual retail sales 2. 4 B pieces
What are my options? Lightweight Shipments – (under 1 lb. ) § First-Class Package Service § Pricing Options § Commercial Base - up to 13 oz. § Commercial Plus - up to 1 lb. § Service standard 1 -3 days § Parcel Select Lightweight § High volume; up to 1 lb. § Priced by weight, presort level and entry point SERVING • E-tailers who want to offer free shipping • Any lightweight fulfillment
What are my options? Expedited weight/zone § Priority Mail Weight/Zone § Self-packaging or branded packaging choices § Envelopes, boxes, padded, soft-pack § Available with cubic pricing § Priority Mail Cubic § Space-efficient shipping up to 0. 5 cubic feet § Postage based on distance and Expedited Extras cubic volume - not weight • 2 -3 day delivery § Commercial customers • Included in price: § Threshold 150, 000 annually – Pick up – Tracking § Soft-pack and padded options – Forwarding/return – Delivery confirmation
What are my options? Expedited Flat Rate § Priority Mail Flat Rate § § Six envelopes and six boxes to choose from 2 -3 day delivery 75, 000 combined parcels/flats for Commercial Plus Padded envelope fulfillment option – cushioned ride § Priority Mail Regional Rate § § § Best selling shipping boxes High-volume, short-haul market Highly competitive Zones 1 -4 Three sizes, five boxes total Box C — largest USPS-produced box for commercial use Flat Rate Benefits • Save costs – no weighing, rating • If it fits it ships – up to 70 lbs • Free branded packaging delivered
What are my options? Expedited Flat Rate (cont’d) § Express Mail Flat Rate § § Overnight guaranteed Commercial Plus 5, 000 pcs/yr. PC Postage, IBI meter, permit imprint or e. Postage Three envelopes including new padded; new Flat Rate Box § Critical Mail § § § 1 -3 day delivery Letters to 3 oz. - Flats to 13 oz. Event tickets, documents Secure delivery on first attempt Threshold 5, 000 annually Flat Rate Benefits • Save costs – no weighing, rating • If it fits it ships – up to 70 lbs • Free branded packaging delivered
What are my options? Ground shipments – (1 -70 lbs. ) § Full Network § Parcel Post – no longer available § New Options: § Standard Post – Retail § Parcel Select nonpresort – Commercial § Parcel Select § § End to End 1 st mile - last mile Workshare discounts - six entry levels National and Regional third-party logistics providers/partners
Consumer Returns and Online Purchasing § 5% to 30% of sales end up as a return § Average 8. 5% § High tech returns up to 20% § Apparel > 30% § $100 billion in goods returned each year § Nearly half following holiday season § Can be costly to merchant § 2 -3 times cost of outbound shipment § If poorly handled, erodes profits § Impact on repeat orders, customer loyalty
Consumer Returns and e. Commerce Approaching $4 B by 2016
Consumer Returns Consumer returns (C 2 B shipping) § Fast growing § Primarily ground § Less time-sensitive than outbound § Huge business impact § Consumers seek convenient, low- or no-cost § Merchant returns policy influences purchase decision, customer retention online
Consumer Returns—business impact Impact of a negative returns experience 85% of customers WILL NOT shop again if the return process is not convenient Impact of a positive returns experience 95% of customers WILL shop again if the return process is convenient ü With a positive returns experience―customer returns to shop again ü Repeat purchases by existing customers require up to 90% less marketing effort than new purchases
USPS Return Options USPS Returns § Merchant-paid and ROYO options § Consumer and merchant convenience § Cloud-based labels § Scan-based payment § Package pickup, tracking § Data exchange (inventory, customer relations) SERVING • Top Internet retailers • Existing partners • Businesses looking for ROYO solutions
USPS Return Options Returns — options (C 2 B) 59% 41% of merchants Merchant pays shipper Consumer pays shipper Convenience Labels* ROYO Permit End-to-End (MRS, PRS, SBP) First Mile (PRS) POS APC CNS Priority Mail First Class Package Parcel Post § Two main categories § ROYO followed by significant number of merchants * In some cases, consumers elect not to use the convenience label and choose ROYO instead
How to engage USPS Ø Atlanta Field Sales: Ø Michael Malone Mgr. , Shipping & Mailing Solutions Atlanta District – U. S. Postal Service Office: 770 -935 -2216 Mobile 770 -861 -0439 email: michael. w. malone@usps. gov Ø Business Alliances: Ø Jesus Barona Mgr. , Business Alliances U. S. Postal Service Office: 404 -585 -8331 email: jesus. j. barona@usps. gov
Conclusion Why USPS? ü B 2 C fulfillment priced right—ground, expedited, flat-rate, lightweight, cubic and regional choices ü Best Consumer returns solution in the market ü Free packaging, pickup and tracking ü Visibility for mailing and shipping ü Convenience—more locations, mobile access ü Secure mailbox and convenient delivery options (Go. Post, Hold For Pickup) ü Upfront costs – NO hidden surcharges/fees
Thank you!
- Slides: 22