Field Information Kit: Ground Shipping Parcel Return Service

This field information kit is designed to serve as informa­tion and reference for the new Parcel Return Service (PRS) pilot with United Parcel Service (UPS), and contains the following items:

n Pilot announcement.

n Employee stand-up talks for the following types of facilities:

n Retail:

n Back office.

n Retail associates.

n All carriers.

n BMC.

n Frequently asked questions (FAQs).

n Poster — sample UPS label.

Pilot Announcement: Parcel Return Service — It’s Growing!

Beginning February 23, 2009, UPS launched a pilot ser­vice called “UPS Returns Flexible Access” using USPS® PRS. UPS will allow customers to return items — originally shipped by UPS — to participating retailers using the Postal Service™ for pickup. Consumers will gain the con­venience of USPS access points for a return pickup — collection boxes, Post Offices™, and Free Package Pickup from home or business addresses. With the launch of this pilot, UPS becomes a participant in the national PRS return delivery unit (RDU) program, which includes our current partner Newgistics. Only those customers who have a combination UPS and USPS-PRS label will be participating in this pilot and will be allowed to hand off their return pack­ages to the Postal Service. It will be critical that personnel in all retail offices, all carriers, plant personnel, and bulk mail center (BMC) personnel be able to identify, accept, and process these packages according to their respective service talks.

Return packages are a growing market segment, thanks to increased Internet and catalog sales and the recycling of small electronics. Market studies indicate that in order to maintain consumer loyalty and repeat business, the returns process must be easy. PRS was developed for merchants that experience a large number of returns and want to pro­vide their customers with a convenient return solution, and for shipping consolidators or reverse logistics providers. PRS has shown steady volume and revenue growth since its launch in 2003. PRS offers two pricing options for two entry levels, designated RDUs and return bulk mail centers (RBMC).

PRS/UPS Pilot Stand-up Talk for Back Office Employees

As of February 23, 2009, UPS partnered with the U.S. Postal Service® and launched a pilot program called “UPS Returns Flexible Access”. With the launch of this program, UPS becomes a participant in the national PRS RDU Program. The program is called “Flexible Access” because the customer can choose to return the parcel with UPS or the Postal Service. We’re hoping the convenience we can offer will persuade customers to mail with us, generating new revenue for the Postal Service. Customers can give parcels to their mail carrier, leave parcels in their mailbox, drop them in a collection box, drop them off at the retail counter, or request Carrier Pickup™ service.

If you get a parcel with a UPS label read from the bottom up. Look for our Postal Service PRS label on the bottom with the unique ZIP Code of 56902 and an alpha code of B. Carriers will identify these parcels, bring them back, and place them in the designated area.

PRS label 1

If you are a designated RDU for UPS, your office will have on file an Authorized Agent Notification for Parcel Return Services — Return Delivery Unit letter. This letter will also have a PS Form 3801, Standing Delivery Order, attached, with instructions for pickup by UPS or its agent.

When processing PRS items, you must look for the des­ignated unique ZIP Code (56902) and Mailer ID (“B”) that were mentioned in the UPS letter. If you are currently an RDU for Newgistics (56901), you still are and there are no changes to the procedure for its packages. If you are an RDU for both UPS and Newgistics, you will need to identify both and make two separations. Any other items with a unique 569XX ZIP Code and other Mailer ID must not be held or scanned at your facility. They are sent to the BMC with other outgoing mail.

Two mandatory PRS scans

1. Available for pickup — triggers pickup and pay­ment. Perform this scan the day the parcel is received. ***No Scan — We do not get paid***.

2. Picked up by agent — change of custody. Perform this scan when the UPS driver picks up the parcel.

To identify UPS PRS items:

1. Look for the designated unique ZIP Code “56902”.

2. Ensure the Mailer ID is “B”.

The success of this program depends on you — identify, scan, and properly handle PRS packages. Ask your super­visor if you have any questions.

PRS/UPS Pilot Stand-up Talk for Retail Associates

As of February 23, 2009, UPS partnered with the U.S. Postal Service and launched a pilot program called “Flexi­ble Access”. With the launch of this program UPS becomes a participant in the national PRS RDU Program. The pro­gram is called “Flexible Access” because the customer can choose to return the parcel with UPS or the Postal Service. We’re hoping the convenience we offer will persuade cus­tomers to mail with us, generating new revenue for the Postal Service. Customers can give parcels to their mail carrier, leave parcels in their mailbox, drop them in a collection box, drop them off at the retail counter, or request Carrier Pickup service.

If you get a parcel with a UPS label read from the bottom up. Look for our Postal Service label on the bottom with the unique ZIP Code of 56902 and an alpha code of B. If you see these identifiers, accept the package. It is a Postal Service PRS package.

PRS label 2

Points to Remember for the Retail Window

n Retail associates are required to ask the Hazmat question for all parcels accepted over the retail window.

n Retail associates accepting PRS packages do not enter the PRS ZIP Code into the POS or IRT system; simply thank the customer and deposit the package into the appropriate designated container for back–office/dispatch separation and scanning.

n Make sure PRS packages are not marked or pre­pared for expedited handling (Priority Mail® or Express Mail® service).

n Special services are not permitted with the exception of Certificate of Mailing. You may offer this optional service.

n Handwritten or customer prepared labels are not per­mitted for PRS service.

n Do not line out PRS ZIP Code or barcodes or the UPS information.

n ZIP Code range 56900 thru 56999 is valid for PRS packages.

Remember: No acceptance scan or retail transaction is required. Special service add-ons are not allowed, other than Certificate of Mailing. This makes the PRS transaction a very simple one.

If we do it right, we can build volume and that will give us more PRS packages to accept, collect, and process. PRS has generated significant new revenue since it launched in October 2003, and retailers count on us to process returns correctly. We need your help to keep PRS successful. Keeping these simple processes in mind will help us serve customers better as more of them learn about — and use — this great service.

Ask your supervisor if you have any questions.

PRS/UPS Pilot Stand-up Talk for All Carriers

Beginning February 23, 2009, UPS partnered with the U.S. Postal Service and launched a pilot program called “UPS Returns Flexible Access”. With the launch of this program, UPS becomes a participant in the national PRS RDU Program. The program is called “Flexible Access” because the customer can choose to return the parcel with UPS or the Postal Service. We’re hoping the convenience we can offer will persuade customers to mail with us, generating new revenue for the Postal Service. Customers can give parcels to their mail carrier, leave parcels in their mailbox, drop them in a collection box, drop them off at the retail counter, or request Carrier Pickup service.

If you get a parcel with a UPS label, read from the bottom up. Look for our Postal Service PRS label on the bottom with the unique ZIP Code of 56902 and an alpha code of B. Carriers will identify these parcels, bring them back, and place them in the designated area.

PRS label 3

Key Points

n To identify UPS PRS items:

n Look for the designated unique ZIP Code “56902”.

n Ensure the Mailer ID is “B”.

n Bring the parcels back and place them in the area designated by your supervisor.

The success of this program depends on you to identify and properly handle PRS packages.

Ask your supervisor if you have any questions.

PRS/UPS Pilot Stand-up Talk for BMCs

Beginning February 23, 2009, USPS and UPS launched a pilot service called “UPS Returns Flexible Access” using USPS Parcel Return Service. With the launch of this service, UPS became a new partner in our national PRS initiative. The service is called “Flexible Access” because customers have the option of returning the parcel directly to UPS or giving it to the Postal Service.

This service leverages the convenience of the Postal Service’s extensive network of drop-off and pickup points. Customers have the option of requesting Carrier Pickup service on USPS.com®, handing the parcels to their mail carrier, dropping the parcels in a collection box, or taking the parcels to any Post Office. Postage is paid when these packages are scanned.

Most UPS PRS parcels will be identified and retained at RDUs for pickup by UPS. However, because these pack­ages may be mixed with collection mail, it is possible these pieces will arrive at a P&DC. UPS PRS parcels identified in a P&DC will be dispatched to the BMC for scanning and pickup.

When UPS PRS parcels arrive at the BMC, they will be sorted like other parcels. Because the labels on these parcels contain both USPS and UPS shipping information, it is essential that you be familiar with the design and be able to identify the USPS section. (Provide the attached sample for employee review and post in keying areas.) The USPS section and ZIP Code are on the bottom half of the label, and employees should read the label from the bottom up.

Once sorted, the parcels must be containerized, placarded, and staged for pickup by UPS. To ensure appropriate postage fees are collected, every parcel must be scanned as ‘Enroute’ by a BMEU employee prior to being released to UPS. In summary, there are two things you need to remember:

n UPS is a new PRS partner and its unique ZIP Code is 56902.

n The label on UPS PRS parcels will contain both USPS and UPS shipping information. The USPS information will be on the bottom half of the label.

If you have any questions or are not sure what to look for, contact your supervisor. We are counting on you to make this test and the continued growth of PRS a success!

Combination USPS/UPS PRS Labels

PRS label 4

1. The label will be a combination UPS and USPS PRS label — read from the bottom up.

2. USPS PRS information will be on the bottom half of the label.

3. The label will bear two unique identifiers:

a. Unique ZIP Code 56902.

b. Alpha code B (Brown for UPS).

4. Place scanned items ready for pickup in designated area.

5. Other PRS parcels with different unique 569XX ZIP Codes or Mailer IDs must not be commingled with UPS returns. They must remain separate at all times.

Frequently Asked Questions

Q. What is Parcel Return Service?

A. Parcel Return Service (PRS) is a service developed for merchants who receive a large volume of returns and want to provide their customers with the conve­nience of a return solution and for shipping consoli­dators or reverse logistics providers. Customers will receive a return shipping label with their original ship­ment, through a call center, through the mail, or on­line at the merchants’ website. PRS features Free Package Pickup for customers and competitive pric­ing options for merchants.

Q. How does the package get back to the merchant?

A. USPS will consolidate PRS packages at designated postal facilities where they will be picked up by qual­ifying merchants or agents. Packages are retrieved on an agreed upon basis. In exchange for picking up return packages, merchants or their agents receive lower postage rates and the Postal Service benefits from reduced transportation and handling costs.

Q. Can I bring my return package to any Post Office?

A. Yes, if you have a PRS label you can bring your pack­age to any Post Office, deposit it in any postal collec­tion box, or request Free Package Pickup.

Q. How do I get Free Package Pickup?

A. Follow the instructions provided by the merchant, or you can request Free Package Pickup at www.usps.com/pickup.

Q. What are the price categories for PRS?

A. PRS features two pricing options — one for packag­es picked up at RDUs, and one for packages picked up at BMCs. The unique 569 ZIP Code and Mailer ID appear on all PRS mailing labels. Pricing can be pub­lished or contracted. The Postal Service charges merchants, or their agents who pick up these pack­ages, prices based on weight, including a charge for oversized packages.

Q. How is the postage paid?

A. The postage is paid by the merchant. The merchant provides a return shipping label with the original ship­ment, through a call center, through the mail, or on­line through their website.

Q. How does a merchant or agent become a PRS participant?

A. A merchant or agent that wishes to participate must submit a request on its company letterhead to the manager of Business Mailer Support. The specifics for making requests are available at www.usps.com/parcelreturnservices or by referring to Mailing Stan­dards of the United States Postal Service, Domestic Mail Manual.

Q. Is there a permit fee associated with PRS?

A. Participants must pay an annual permit fee of $180.00 and an advance deposit accounting fee of $565.00. The Postal Service requires only a single permit fee for price categories, regardless of the number of locations from which the agent retrieves packages.

Q. What is the difference between PRS and Merchan­dise Return Service (MRS)?

A. Both services offer merchants postage paid return la­bels. However, with MRS the Postal Service process­es and transports the package to the merchants. With PRS, the merchants or their agents come to a designated postal facility to pick up their returned items at a cost savings to them.

Q. Will all Postal Service facilities hold PRS packages for pickup?

A. All BMCs are designated as RBMCs. Only specifical­ly designated Post Offices will serve as RDUs.

Q. How will I know if my office is a specifically designat­ed RDU?

A. Specifically designated RDUs will be notified by the merchant/agent via the Authorization Agent Notifica­tion for Parcel Return Services — Return Delivery Unit letter including the PS Form 3801, which will be placed on file. Training is provided to all designated RDUs by area/district PRS coordinators.

Q. If I am an RDU for one agent, am I an RDU for all agents?

A. No. Each agent uses various methods to determine which sites will be an RDU and where they will pick up. Your facility will receive a separate letter of notifi­cation from each merchant/agent.

Q. What if I’m an RDU for one agent and not for another?

A. You will scan and hold the PRS packages for the agent for whom you are a designated RDU, and you will placard and dispatch the other PRS packages to the RBMC.

Q. Does PRS offer tracking?

A. PRS labels include a barcode that allows a customer to confirm the date and time when the return is avail­able for pickup and when the merchant or agent retrieves packages at the RDU. Enroute status and picked up by agent information is also provided once returns are manifested from a RBMC.

Q. Can a merchant or agent consolidate returns at only one RDU or RBMC?

A. No. A participating merchants or agents can retrieve at all BMCs and specifically designated RDUs.

Q. Can any extra services be used with PRS?

A. Only one extra service is available with PRS. For a fee, the mailer may purchase Certificate of Mailing.

Q. Where can I get more information about PRS?

A. Additional information about PRS on available at www.usps.com/parcelreturnservices.

Did you know? The Freedom of Information Act (FOIA) applies to all USPS records, including e-mails and attachments.

Parcel Return Services (PRS) Poster [D]