The Postal Service provides packaging supplies for its domestic and international Priority Mail Express and Priority Mail products at no additional cost. Free packaging is a unique selling tool, differentiating the Postal Service from its competitors. These packaging items include boxes and envelopes, as well as a range of pressure sensitive labels and decals.
The Postal Service claims the Expedited Packaging Supplies Program generates new revenue, grows business, increases volume for Priority Mail Express and Priority Mail, and improves customer retention and loyalty. Also, according to USPS, costs for providing free packaging supplies are included in the current rate structure of the corresponding mail products (e.g., Priority Mail Express and Priority Mail).
What do you think?
- Do you think the Postal Service effectively recoups all costs for its free expedited packaging supplies in the prices it charges for Priority Mail Express and Priority Mail?
- Are there opportunities to reduce costs for expedited packaging supplies (for example, storage costs, shipping costs, etc.)?
- Are you aware of supplies being used for things other than intended purposes? How can the Postal Service ensure free boxes and envelopes are used by customers appropriately?
- Are there industry best practices that the Postal Service could adopt for managing costs of complimentary expedited packaging supplies?