Industry Trends Revealed in USPS® Report
Results are in from the U.S. Postal Service third quarter 2018 report, and it reveals an interesting yet recurring story: mailing volumes are down. For shippers, there’s more to this story than just the numbers and some good news.
Mail Volumes, The Silver Lining
Total mail volume declined by a combined 397 million pieces, or 1.2 percent, compared to the same quarter last year.
However, companies are looking at their mailing strategy and taking advantage of marketing mail discounts by sending in bulk. The report shows Marketing Mail revenue increased by $63 million, or 1.6 percent, while overall First-Class Mail revenue declined by $134 million, or 2.2 percent.
If you are mailing more than 200 mail pieces or more than 50 lbs. of mail at a time you should look into getting marketing mail discounts. Marketing Mail is exactly what it sounds like: printed matter, flyers, circulars, newsletters, catalogs, bulletins and small parcels. If you’re new to Marketing Mail, it isn’t charged by per-piece price, so it costs less. Plus, there are some additional pricing perks for non-profits.
What Goes Up When the Mailing Goes Down?
Answer: Shipping Volumes
Shipping volumes are actually way up over the previous year.
Shipping and Packages revenue increased by $475 million, or 10.2 percent, on volume growth of 102 million pieces, or 7.5 percent, indicating a continued trend of major package growth. That’s something worth auditing within your own company, and our experts are here to help! They’ll help you figure out if your shipping volumes are growing. If so, it is more important than ever to have a shipping strategy that is poised for growth. Look into leveraging multiple carriers and services to compare for the most competitive shipping costs. The easiest way to do this is with shipping software that is the right size for your company.
Make sure you’re on the upside of this trend. Click here to connect with a shipping specialist who can analyze your shipping and guide your business to the best solution
USPS® Calls for Postal Reform
Although there was a net loss in revenue for the quarter the USPS cites a flawed business model as the main culprit. The net loss for the quarter totaled $1.5 billion, a decline in net loss of $651 million compared to the same period last year, “The root cause of our financial instability is a flawed business model that is imposed by law. We encourage the Congress to engage in a broad public policy discussion and pass postal reform legislation,” said Postmaster General and CEO Megan J. Brennan. “We support legislation under consideration in the current Congress which would provide immediate flexibility to the organization, allow the Postal Service to invest in our future and continue to provide the prompt, reliable, efficient and universal service the public expects.”
Brennan added that in addition to enactment of postal reform legislation, continued aggressive postal management action and regulatory changes, including a less rigid and more responsive pricing system, are required. This could mean changes for the USPS rates in the future.
We’ll stay on it! For now, stay in the know by subscribing to NeoNews.