1. eCommerce Package Business
Bruce Klein
USPS Shipping Product Management
February 21, 2018

2. eCommerce Package Business
What is eCommerce?
What are the possible different business models?
What is most important for customer engagement and retention?
How is the Postal Service positioned to support eCommerce?

3. What is
eCommerce?
eCommerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. These business transactions occur either as business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business.

4. What are the possible different business models?
Distribution Centers (B2C)
Distribution Center to Store (B2B)
Ship from Store (B2C)
Merchant Network (C2C)
Fulfillment House (3PL)
Returns (C2C/C2B/B2C)

7. Evolution of B2C by Industry Segment

8. USPS Volume Share of B2C Business Segments

9. User Interface and User Experience
What is most important for customer engagement and retention?
User Interface and User Experience
Seamless; Simple and Easy Ordering and Return's processes, couple with timely and accurate notifications.

10. Most convenient carrier for returns
2 of 3
Statistics show that the returns experience is the number-one source of pain for online shoppers. Our footprint of over 31,000 retail locations and 155 million pickup and delivery stops nationwide can help you:
online consumers would buy more with free returns.1
95%
of online customers would repeat business if returns process is simple. 1
Reduce barriers to purchase.
Increase customer loyalty.
Improve inventory management.
Lower costs.
1. "E-Commerce Returns Best Practices," Shorr Packaging Corp., October 14, 2015.

11. How is the Postal Service positioned to support eCommerce?
Where Infrastructure
and Technology Meet to Deliver

12. We connect every address, every day
From business to personal and every place in between for over 240 years
225,000+ vehicles
156M delivery points nationwide
31,585 retail outlets
More than McDonald’s, Walmart, and Starbucks combined
Delivery 7 days/week
5.2 billion packages/year, 506 million mailpieces/day

13. Package processing 24/7, fully integrated, end-to-end processing
Automated Package Processing System (APPS)
9,500 pieces per hour throughput
High-accuracy sortation for handwritten and machine-printed addresses

14. Our customers are your customers— our brand is an extension of yours
Delivery expectations are ever changing.
Key needs center around:
Reliability
Visibility
Security
Value
Seamless experience
Sustainability

15. Security and confidentiality
The United States Postal Inspection Service® enforces over 200 federal laws related to crimes of theft, fraud and abuse of the U.S. Mail®.
The sanctity of your package is the government mandated mission of the U.S. Postal Inspection Service.
USPS is the only courier to have their own law enforcement
Customer packages are protected by federal law
Largest computer network linking 32,000 facilities—all working together to keep your mail and your business safe
Secured mail recovery facility for processing any damage or loss packages

16. Of packages are delivered undamaged
99.99%
Of packages are delivered undamaged
Trusted and Reliable
USPS has been named the most trusted government agency for the past five years.
In 2017, for the tenth straight year, USPS was named one of the 10 most-trusted companies for privacy in North America.1
Low loss and damage: 99.99% of First-Class parcels and Priority Mail® are delivered undamaged/without loss
Most Trusted Companies for Privacy Study, The Ponemon Institute, January 31, 2017 
Volume of packages vs
Losses & damages

17. Cultivating a sustainable future
Greenhouse gases cut 13.3% since 2008
Americans rank USPS no. 1 of 13 federal agencies
(According to a 2016 Gallup poll)
Facility energy use reduced 31.4% since 2003
We recycled 223,796 tons of waste
Our free packaging meets Sustainable Forestry Initiative or Forest Stewardship Council certification standards
Purchased $236 million of environmentally preferable products

18. Outpacing our competitors
In growth and reach
While our industry is growing at a rate of 6%,
USPS is growing at 16%
Key player in e-commerce delivery
USPS even takes competitors’
packages the “last mile” for delivery

19. 2017 Peak Season Delivery We continue to outpace the competition
We increased holiday operations to deliver for our customers.
~800M
Christmas Day delivery in many metros
Three shifts per day in key markets
35,000+ seasonal workers
~700M
~355M
We continue to outpace the competition
in package delivery growth

20. Enhancements in visibility
Innovations that answer our
customers’ expectations
Improved scanning technology for better
tracking and real-time notifications
Predictive delivery notifies customers
of estimated delivery time within one hour
My USPS lets consumers manage
incoming packages
Informed Delivery™ sends a daily with images of mail that’s on its way

21. Innovative solutions That redefine the customer experience
Sunday delivery
Same-day delivery
Ship-from-store
Grocery and customized delivery
Poised for the next big thing

22. Looking forward To a future of transforming the customer
experience through data, infrastructure,
and technology
World’s third-largest IT infrastructure
Upgrading vehicle fleet
Deployed 263,000 new Mobile Delivery Device (MDD) scanners nationwide
Upgrading retail POS systems and kiosks

23. Innovating mail The Postal Service focus on innovation
extends into mail technology and
marketing as well.
Irresistible Mail
Designed to do more
Proven results
Tactile, Interactive, Connected

24. Direct mail—solutions that deliver
73%
Direct mail delivers
of consumers
prefer direct mail1
30x
higher response rate than 2
Direct mail tops
all other media for delivering
the highest ROI for B2C
marketing3
31%
38%
For acquisition
For retention
1. Epsilon Channel Preference for Mobile and Non-Mobile
2. Digital Direct Mail Printing in North America: Market Analysis & Forecast (2013–2018), Interquest, November 2013.
3. "Direct mail delivers results," Pitney Bowes, 2015.

25. Direct mail strengthens digital
65%
of people who received direct mail
made a purchase or responded1
69%
are more likely to open a mailpiece with color
text and graphics on the front before opening
pieces with no headline or graphic2
45%
increase in response rates when print is
combined with web, , and mobile3
1. Epsilon Channel Preference for Mobile and Non-Mobile
2. Digital Direct Mail Printing in North America: Market Analysis & Forecast (2013–2018), Interquest, November 2013.
3. "Direct mail delivers results," Pitney Bowes, 2015.

26. Partners and Tools Partners PC Postage Shipping Software Tools
Free shipping software
Windows-based, Browser, API’s
USPS.COM and API’s
Informed Delivery
Address
Tracking
Package Pick-up
Pricing
Service standards

27. Proven Shipping Options
Priority Mail1 envelopes and packages
(1-3 days)
First-Class
Package 1,2
(1-4 days)
FAST
Priority Mail Express envelopes and packages (Next Day)2
FASTER
Multiple International shipping options also available
PLUS
Parcel Select1
Retail Ground1
Media Mail
Bound Printed Matter
ECONOMY
Returns1
1 Services available for Return Services
2 Some restrictions and certain limitations may apply
USPS Tracking included on all barcoded packages

28. Parcel Select Lightweight®
Shipping Solutions
First-Class Mail®
Priority Mail®
Parcel Select®
Parcel Select Lightweight®
Description
Economical, ounce-based Commercial Base® Pricing up to
13 ounces
Fast and affordable, date-specified delivery
Economical ground service for regular and large packages
Affordable presorted parcel ground service for packages that weigh less than 1 pound
Delivery time
Delivery in 1 to 3 business days1
Domestic delivery averages 2 to 9 business days (not guaranteed service)
Domestic delivery averages 2 to 9 business days (not guaranteed service)
Tracking/ delivery confirmation
Can combine with extra services to confirm delivery
Includes free USPS Tracking® online and at retail2
Includes free USPS Tracking for domestic shipments
Insurance
Insurance for loss or damage up to $5,000 for merchandise only
Includes up to $50 of insurance3 with most shipments4
Insurance available for additional fee
Dimensional (DIM) weight
No DIM weight charges
USPS only applies DIM weight pricing to domestic Priority Mail packages over 1 cubic foot shipped to zones 5–9
Surcharges
No surcharges for fuel or residential, rural, and regular Saturday delivery
Key shipping
products
USPS has a full range of products to deliver packages in a timely and affordable manner.

29. Parcel Select Lightweight®
Shipping Solutions
First-Class Mail®
Priority Mail®
Parcel Select®
Parcel Select Lightweight®
Dimensional (DIM) weight
No DIM weight charges
USPS only applies DIM weight pricing to domestic Priority Mail packages over 1 cubic foot shipped to zones 5–9
Surcharges
No surcharges for fuel or residential, rural, and regular Saturday delivery
Key shipping
products
USPS has a full range of products to deliver packages in a timely and affordable manner.

30. Simple solutions
USPS makes integration of your systems simple by providing the support you need.
Our team of Operations Integration Specialists reduces the time it takes to get up and running with USPS.
Payment methods, acceptance, transportation and equipment, packaging, and processing
And, our Technical Integration Specialists help you make a seamless IT transition by implementing technologies that make it easier to do business with USPS.
USPS Web Tools® (APIs), e-commerce web portal, Electronic Verification System (eVS®), Electronic Data Interchange over Internet, ePostage, PC Postage®, Scan-Based Payment, Barcodes (IMb® and IMpb™)/label/mailpiece certification

31. expectations is critical to our collective success
Exceeding customer
expectations is critical
to our collective success
We put our strengths to work for you.
Enduring partnerships and expertise
Convenience of our nationwide access
Established infrastructure
Secure technology infrastructure
Emphasis on sustainability
Innovative and customized solutions

32. Thank you for your time!
Bruce Klein