The U.S. Postal Service will conduct a market test beginning in January involving greeting cards that don’t require a postage stamp. Postage will be paid by the card producer based on sales information as well as data captured during mail processing. The USPS has stated that First-Class Mail single-correspondence has been declining as part of U.S. mail volume as consumers migrate to e-mail, social media, cell phones and other modes of communications. It is hoping the postage-paid greeting cards will encourage more consumers to buy and mail greeting cards. The Postal Service also expects that greeting card companies will use the product to increase the sale of greeting cards. The USPS expects that the annual revenues from the market test could exceed $10 million. The proposed price is 48 cents for cards and envelopes with a combined weight of no more than one ounce. For mail and envelopes with a combined weight between one and two ounces, the price will be 48 cents plus the second ounce price. In the test's second year, the Postal Service plans to test more than one postage rate. Participating businesses will produce and distribute pre-approved envelopes that meet specific design requirements. At least 50% of the postage will be paid based on the company’s reports on the number of cards sold to customers or third-party vendors with the balance of postage due based on scans of the cards that are mailed. Intelligent Mail technology will be used to identify and scan each greeting card’s movement through the postal system, for volume and revenue reporting. ``No Postage Necessary if Mailed in the United States'' will be printed in the upper right corner of the address side of each envelope.
Discussion
By Clint Bolte on Nov 23, 2010
At the National Postal Forum held in Nashville this past spring Hallmark announced that they had received approval and expected to issue its first postage paid line of one ounce greeting cards utilizing IMB for tracking this year. Hard to imagine Hallmark would charge only 48 cents for card and postage though. Which might explain why no brand name is mentioned in this news release. On the other hand the liability for prepaid envelopes is an issue that most retailers will wrinkle their noses at. Interesting to see how the concept can go mainstream and also resolve this issue. Marketing solely through the Post Offices will barely scratch the surface of the potential demand.
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