1 Shaping a More Efficient Future Pricing Change Effective Monday, May 14

2 Shaping a More Efficient Future Periodicals July 15 Implementation  Outside-County –More complex container rate application –Bundle rates based on sort level and container level –Container rates based on container type, level, and entry  Allow time for software development

3 Shaping a More Efficient Future Request for Reconsideration  Standard Mail flats  Nonmachinable surcharge for First-Class Mail letters  Priority Mail Flat Rate Box

4 Shaping a More Efficient Future New Prices  Reflect changes in operations and the marketplace  Offer more choices  Include incentives  Reduce undeliverable-as-addressed mail  Better reflect that shape matters

5 Forever Stamp  Booklets and sheetlets  Available April 12  Single-piece rate 41¢  Good forever Shaping a More Efficient Future First-Class Mail ®

6 Shape Matters – Single-Piece  Letters 41¢ –Nonmachinable surcharge 17¢  Additional ounce 17¢  Postcards 26¢  Flats 80¢  Parcels $1.13 Shaping a More Efficient Future First-Class Mail ®

7 Shape Matters – Letters  Maximum weight 3.5 ounces –Pieces that exceed 3.5 ounces or any letter-size dimension are charged as flats Shaping a More Efficient Future First-Class Mail ® Length Height Thickness Minimum 5 inches 3-1/2 inches inch Maximum 11-1/2 inches 6-1/8 inches 1/4 inch Nonmachinable letters weighing 1 ounce or less will be charged 17¢ nonmachinable surcharge.

8 Shape Matters – Flats  Maximum weight 13 ounces –Pieces that exceed any dimension are charged as parcels Shaping a More Efficient Future First-Class Mail ® Length Height Thickness Minimum* 11-1/2 inches 6-1/8 inches 1/4 inch Maximum 15 inches 12 inches 3/4 inch *Flats exceed at least one of these dimensions. Flats with the following characteristics are also subject to parcel prices:  Not flexible  Not rectangular  Not uniform in thickness

9 Shape Matters – Lower Prices  Lower prices for –Letters over 1 ounce –Flats over 6 ounces Shaping a More Efficient Future First-Class Mail ®

10 Shape Matters – Example  Flat-size to letter-size envelope Save 39¢ Shaping a More Efficient Future First-Class Mail ® 2-ounce example 97¢ 58¢

11 Shape Matters – Example  Parcel to flat Save 33¢ Shaping a More Efficient Future First-Class Mail ® 2-ounce example 97¢ $1.30

12 Workshare  Presort and automation flats additional ounce 17¢  Automation letter additional ounce 12.5¢  Maximum weight –Presort letter 3.3 ounces –Automation letter 3.5 ounces Shaping a More Efficient Future First-Class Mail ®

13 Automation Letters  Automation Carrier Route rates eliminated  No change to rate eligibility 5-digit/scheme optional 3-digit/scheme AADC Mixed AADC 5-Digit/Scheme Overflow Mail 3-Digit/Scheme Overflow Mail AADC Overflow Mail  Require 85% full trays  Reduced overflow option Shaping a More Efficient Future First-Cass Mail ®

14 Machinable Letters  Simplified tray preparation Origin 3-digit AADCMixed AADC Shaping a More Efficient Future First-Class Mail ®

15 Automation Flats Must be  Flexible  Rectangular  Uniformly thick Shaping a More Efficient Future First-Class Mail ®

16 Presorted Parcels  New rate structure  Barcodes required –UCC/EAN Code128 –or POSTNET 5-digit3-digitADC Shaping a More Efficient Future First-Class Mail ®

17 Shaping a More Efficient Future Priority Mail ® Price Flat-Rate Envelope$4.60 Flat-Rate Box$9.15 Flat Rates

18 Dimensional Weight and Balloon Rate Pricing  Dimensional weight Zones 5-8  Balloon rate Local and Zones 1-4  USPS-complimentary packaging not subject to either  Lower prices for heavier items Shaping a More Efficient Future Priority Mail ®

19 Dimensional Weight Pricing Example Zone 8, 10 pound, 1.6 cubic foot parcel $30.50 Reduce size by 25% to 1.2 cubic feet $26.35 $4.15 Save Shaping a More Efficient Future Priority Mail ®

20 Shaping a More Efficient Future Express Mail ® New 1-Pound Price Post Office to AddresseePrice 1/2 pound (flat-rate envelope)$ pound$ pounds$21.40

21 Shaping a More Efficient Future Standard Mail ™ Initiatives  Greater recognition of shape  Eliminate DDU rate for letters  Drop ship closer to destination  Detached Address Label surcharge

22 Automation Letters  ECR automation rates eliminated  No change to rate eligibility 5-digit/scheme optional 3-digit/scheme AADC Mixed AADC 5-Digit/Scheme Overflow Mail 3-Digit/Scheme Overflow Mail AADC Overflow Mail Shaping a More Efficient Future Standard Mail ™  Require 85% full trays  Reduced overflow tray option

23 Machinable Letters  Simplified tray preparation Optional Origin/Entry 3-digit AADCMixed AADC Shaping a More Efficient Future Standard Mail ™

24 Nonmachinable Letters  Separate rate structure 5-digit3-digit ADC Mixed ADC Shaping a More Efficient Future Standard Mail ™

25 ECR Letters  New tray preparation for barcoded automation-compatible letters 3 ounces or less  No change to preparation for nonautomation and pieces weighing over 3 ounces  DSCF-entry rates allowed for some DDU entry Shaping a More Efficient Future Standard Mail ™

26 Flats  Changes to flat-size mailing standards –Cover costs –Efficient processing and delivery Shaping a More Efficient Future Standard Mail ™

27 Automation Flats  Must be –Flexible –Rectangular –Uniformly thick  Maximum thickness 3/4″  Minimum size 5″ x 6″ Shaping a More Efficient Future Standard Mail ™

28 Flexibility Test Shaping a More Efficient Future Standard Mail ™ Length runs parallel to the surfaceFlats over 10 inches long that contain a rigid insert; length perpendicular to surface

29 Nonautomation Flats  Not required to meet all automation standards Shaping a More Efficient Future Standard Mail ™

30 Enhanced Carrier Route Flats  Not required to meet all automation standards  ECR maximum size 12″ x 15″  No change to preparation Shaping a More Efficient Future Standard Mail ™

31 Parcels  New rate structure 5-digitBMCMixed BMC 5-digit3-digitADCMixed ADC Shaping a More Efficient Future Standard Mail ™  DDU-entry option  Barcodes required Machinable rate tiers Irregular rate tiers

32 Not Flat-Machinable  Rigid pieces  USFM 1000 standards  Provides an additional option Shaping a More Efficient Future Standard Mail ™

33 Not Flat-Machinable  Preparation –6 ounces and over – machinable parcel preparation –Less than 6 ounces – irregular parcel preparation  Barcodes required  Rate marking required –“NFM” or “Not Flat-Machinable”  DDU entry rates Shaping a More Efficient Future Standard Mail ™

34 Parcel Drop Ship Pricing Example 8 oz. mach parcel, basic presort, BMC drop ship $1.006 Enter at DDU 59.2¢ 41.4¢ Save Shaping a More Efficient Future Standard Mail ™

35 NFM Pricing Example 4 oz. rigid mailpiece, 5-digit presort, DSCF 44.4¢ NFM rate Use auto-compatible flexible packaging 32.0¢ Auto flat rate 12.4¢ Save Shaping a More Efficient Future Standard Mail ™

36 Shaping a More Efficient Future Package Services Initiatives  20-pound balloon rate  Barcodes required on Parcel Select  Nonpresorted Bound Printed Mail rate  Scheme preparation required for BPM, Library Mail and Media Mail

37 Shaping a More Efficient Future Extra Services  New low-cost OneCode Address Change Service  Redesigned Insurance –Barcoded and scanned –$200 and less no signature required  Lower electronic return receipt fee

38 Shaping a More Efficient Future Extra Services  Continue Post Office Box realignment –Caller service now aligned with fee groups  Business Reply Mail prices based on shape  Confirm maintains tiered structure  Annual mailing and permit fees increase

39 Shaping a More Efficient Future International New Shipping and Mailing Options  Global Express Guaranteed ®  Express Mail International  Priority Mail International  First-Class Mail International

40 Shaping a More Efficient Future International Online Discounts  Global Express Guaranteed ® – 10%  Express Mail International – 8%  Priority Mail International – 5%

41 Shaping a More Efficient Future International Global Express Guaranteed ®  Expedited date-certain delivery service

42 Shaping a More Efficient Future International Express Mail International  Reliable 3- to 5-day service  Flat-Rate envelope option

43 Shaping a More Efficient Future International Priority Mail International  Reliable 6- to 10-day service  Flat-Rate box and envelope options

44 Shaping a More Efficient Future International First-Class Mail International  Reliable and economical  For documents and lightweight items

45 Shaping a More Efficient Future International Business Services  International Priority Airmail  International Surface Airlift  M-Bags

46 Shaping a More Efficient Future Resources USPS.com  Pricing change – usps.com/ratecase  Postal Explorer – pe.usps.com  MailPro – usps.com/mailpro  DMM Advisory –