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Chapter 2
Postal Operations

After the purchase, the customer enters the e-mail address at which they wish to receive their return receipt at usps.com. After delivery, the customer is sent a return receipt proof-of-delivery letter via e-mail that includes the date and time of delivery and an image of the recipient's signature. Large volume customers can sign up for the Bulk Proof of Delivery Program to receive their records in bulk. In 2005 this new enhanced product provided opportunities for customers and the Postal Service to improve efficiency. It was marketed mainly to bankers, insurance companies, and vendors.

2. INSURANCE ONLINE

The Postal Service provides customers who purchase shipping labels on usps.com with the option to add domestic insurance to Click-N-Ship and eBay purchases. Click-N-Ship customers may add insurance to Priority Mail and Express Mail; eBay customers may add insurance to Priority Mail, Express Mail, First Class Mail, Media Mail, and Parcel Post. Fees are the same as those at the retail counter. The Postal Service increased online insurance coverage from $200 to $500 this year.

B. CONFIRM SERVICE

CONFIRM uses Postal Alpha Numeric Encoding Technique (PLANET) barcode to provide First-Class Mail, Standard Mail, and Periodicals mailers with the ability to track their outgoing mail and incoming reply letters and flats with near real-time information as the pieces travel through the mail stream. This enables mailers to make better business decisions. In 2005 the Postal Service continued to work with the mailing industry to make CONFIRM service more robust for mailers and the Postal Service. Enhancements included development of a certification program to improve the quality of data for performance measurement; improved ease-of-use Web site and Web-based shared reports used to measure service performance information and data problems; and updated and expanded resources available to customers to learn about service performance and interpreting data.

C. POSTAL MONEY ORDERS

Postal money orders are a safe, convenient, and economical alternative to sending cash through the mail. They can be purchased from any Post Office or rural carrier. During 2005 the Postal Service developed and launched a "positive pay" system for customers and businesses to check the validity of postal money orders. Financial institutions will be able to use this system to reduce the chances of cashing fraudulent orders.

4. Alternative Mail Solutions

NetPost Mailing Online is a suite of Web-based print-and-mail services available at usps.com/netpost. These services leverage the Internet to allow consumers and small businesses access to alternative mail solutions. Enhancements made to this suite of services in 2005 include (1) expanding access to traditional services such as Certified Mail, Return Receipt, and Restricted Delivery from home or office desktop computers; (2) providing the capacity for customers who access Internet Change of Address to notify their chosen business or personal recipients of their new address by using NetPost Movers Postcards; (3) providing access to NetPost Premium Postcards, a template-driven service that gives consumers and small businesses access to a simple and straightforward interface for sending high-quality glossy postcards while providing small businesses with a full direct-mail solution that includes everything from choosing an image to choosing target recipients, creating their own message, and printing and mailing without having to leave their home or office; and (4) adding the ability for NetPost CardStore customers to choose and enclose a gift card from nationally known and respected retailers inside their personalized greeting card.

5. Package Services

To support the growing customer segment of medium and small businesses, the Postal Service focused on initiatives to improve access, ease-of-use, price, and service.

A. EXPEDITED SERVICES

Priority Mail and Express Mail volume and revenue grew in 2005 as customers responded to stable rates and initiatives that make it quick, easy, and convenient to use these products. PC Postage and Click-N-Ship contributed to growth as did a partnership with eBay. Requests for Carrier Pickup, which allows customers to make online requests to have prepaid packages collected for free by their carrier the next delivery day, increased significantly in 2005. The prepaid Priority Mail flat-rate envelope was also popular with customers in 2005. As an added convenience, in November 2004 the Postal Service implemented an experimental Priority Mail flat-rate box in two configurations, but with identical cubic capacity, at a price of $7.70 regardless of weight or distance. As of January 8, 2006, this rate increased to $8.10, maintaining its relationship to double the flat-rate envelope rate.

B. CLICK-N-SHIP

Since Click-N-Ship first introduced online shipping on usps.com, growth has been continuous. In 2005 revenue was double that of 2004. Customers can create labels with and without postage, save addresses from the convenience of their home or office, and then click on a link to schedule a carrier pick up saving them time and a trip to the Post Office. Several new features were added in 2005 to increase the value of this online shipping application. Customers can now create up to ten labels at a time, view their shipping history, save addresses, and purchase online insurance. Customers may also now schedule recurring pickups up to 3 months in advance.

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