2012 Annual Report to Congress
& Comprehensive Statement

Platforms for Growth

As the Postal Service anticipates and adapts to changes in technology and the needs of its customers, it also strives to strengthen its role as a driver of economic activity and as a platform for growth.

The Postal Service launched new products and services and provided compelling offers to business and residential customers throughout the year. Integrated advertising campaigns—such as “If It Fits, It Ships®”—promoted package products, First-Class Mail® and Marketing Mail. The Postal Service leverages its brand and marketing footprint to drive mail and package revenue growth and strengthen business opportunities throughout the mailing industry.

Postal Customer Councils

More than 80,000 individuals are members of 174 Postal Customer Councils (PCCs) throughout the United States. The Postal Service works closely with PCCs to create learning and networking opportunities for businesses that rely on the mail.

PCCs provide an active venue for feedback on local service and operational developments. Members — who represent businesses with mailing operations, mailing list companies, printers and marketers — play an important role as advocates for mail. USPS strives to empower members with information, tools and resources to engage America’s businesses in conversations about the power of mail as a communications channel.

Products and Services

The Postal Service is focused on developing products and services that add value for both the sender and receiver of mail and packages. One of the most popular offerings of 2012 was 2nd Ounce Free, which enable the senders of First-Class Mail to add an additional ounce of content at no additional charge.

It’s a great way to enable senders of statements and other business correspondence to add additional messages and content to promote products and strengthen brands.

The Postal Service invested in innovative product development throughout 2012, exploring potential partnerships and uses of technologies to enhance existing products and services. The Postal Service also established the Digital Solutions Group to create a long-term pipeline of digital offerings.

The Postal Service moved closer to its goal of becoming the shipper of choice for the nation, especially in business-to-consumer shipping. By offering the right products at the right prices, and seizing opportunities in lightweight packages and returns, USPS increased its shipping and package revenue by 8.7 percent.

USPS strengthened its competitive package lineup, expanded popular options like Priority Mail Regional Rate® and Express Mail® Flat Rate Shipping, and offered pricing and contract flexibility, including cubic-based options.

We introduced enhancements that provide customers with more control over their shipments. USPS Package Intercept enables customers to redirect a shipment before final delivery. Day Certain Delivery allows customers to have their packages delivered on a specific day. Scan Based Payment makes returns easier for merchants and customers, and ePostage is a convenient electronic payment option.

And, the fact that our carriers are at every house, every day, makes USPS a good fit for e-commerce shippers and their customers.

Mailing Industry

The Postal Service is at the heart of a large and vibrant mailing industry that employs over 8 million people and generates $800 billion in annual revenue. The Postal Service strives continually to enhance its operations and mail processing network to create a stronger delivery platform. Better use of data and technology is an important part of driving growth in the mailing industry.

The smarter the Postal Service makes its network, the smarter businesses can be in how they use the mail. And the Intelligent Mail™ barcode is the key to a smarter network. The Intelligent Mail barcode system collects the data that enables senders to track the effectiveness of their mailings. The Postal Service also launched an IMb™ tool for small businesses in 2012.

The Postal Service is providing better and more robust data to drive innovations and enable greater integration with other communications channels — especially digital technologies.

Small Businesses

The Postal Service focuses on providing resources and tools to enable small businesses and home-based businesses to compete and thrive. These businesses provide jobs, account for a significant portion of U.S. economic activity, and rely heavily on the Postal Service for mail and package delivery.

Throughout 2012, the Postal Service promoted tools and services designed for small businesses. Every Door Direct Mail — which enables small businesses to use an online tool to create mailings through an intuitive mapping system — is among the most popular. A local restaurant, for example, could target a mailing of menus to neighborhoods and even particular streets. It’s a simple, easy-to-use tool that gives small businesses a way to promote their products. Revenue from Every Door Direct Mail continues to grow as customers discover its value.