Generally, most consumers know the rates for mailing a 1-ounce First-Class® letter. However, many don’t know the prices of other postal service offerings, such as certification, insurance, or return receipt. In some instances, some of these services must be bundled with the mailing type.
Posting the rates for the more commonly used services in a convenient spot in the Post Offices would let customers know approximately how much services cost, allowing them to make informed decisions. For example, displaying rates for the first several ounce increments of First-Class mail, as well as the most commonly used rates for Express Mail and Priority Mail along with the rates for certification, insurance, and return receipt, would help mailers calculate the total purchase price.Read More
Offering volume incentives is a common business practice in the U.S. and around the world. Although the U.S. Postal Service offers incentives to businesses that presort their mail, the agency does not offer incentives based strictly on the volume of packages shipped. One reason might be that offering volume incentives would lower the profit margin on each package shipped; yet, the potential volume increase of items shipped would make up for the smaller profit margins.
E-retail is a multibillion-dollar industry through which millions of transactions are made via clearinghouses, such as Amazon.com and eBay. The e-retail industry continues to grow and includes on-line sales in virtually every industry. In the U.S., online retail spending for the Q4 2010 reached a record $43.4 billion, up from $39.0 billion in Q4 2009. This accelerated growth rate represented the fifth consecutive quarter of positive year-over-year growth and second quarter of double-digit growth rates in the past year. This trend will likely continue as more online people turn to the internet for their shopping needs, and younger, digital-savvy generations increasingly flex their spending power. Companies like eBay, Amazon.com, and traditional retailers with strong web operations should continue to benefit from this growth.
Increases in e-shopping means an increase in the quantity of goods shipped is also increasing. Most vendors have their preferences, which are frequently based on cost. Should the Postal Service take advantage of the increased amount of shipping generated by e-retailers by offering incentives?
Yes or no, and why?
This blog is hosted by the Office of Audit’s Financial Reporting Directorate.Read More
If you’re reading this blog, you likely have an interest in the Postal Service and its financial welfare. How can the Postal Service provide you and other stakeholders with the most appropriate financial information?
When the Postal Accountability and Enhancement Act (the Act) was enacted on December 20, 2006, it made significant changes to the Postal Service’s financial reporting responsibilities and governance. Although the Postal Service is not subject to regulation by the Securities and Exchange Commission (SEC), the Act required the Postal Service to file with the Postal Regulatory Commission (PRC) a number of financial reports containing information prescribed by the SEC (i.e., information contained on SEC Forms 10-Q, 10-K, and 8-K). The Act also specifically required the Postal Service to report certain financial information concerning pension and postretirement health obligations in its SEC-type 10-K annual report based on data provided by the Office of Personnel Management.Read More