Chapter 2: Products and Services

Product Development

The Postal Act of 2006 divided postal products and services into two distinct categories — market dominant (also referred to as mailing services) and competitive (also referred to as shipping services). Different rules for each category allow the Postal Service to bring new products and services to market more quickly, with greater pricing flexibility.

Price changes on average for any class of mail within mailing services may not exceed the rate of inflation based on the Consumer Price Index (CPI) for the previous 12 months. Price changes for shipping services must produce sufficient revenue above a price floor that covers attributable costs and, for shipping services as a whole, an appropriate share of institutional costs.