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Opportunities exist for the Postal Service to further leverage its first mile/last mile strengths to meet emerging needs. Products such as the Premium Forwarding Service, an experimental, personalized reshipping service using Priority Mail, capitalize on the organization's ability to deliver anywhere in the nation. Continued online commerce growth will increase demand for cost-effective delivery and create the opportunity for additional destination-entry products. The Postal Service also will continue to focus on first mile opportunities in the returns market by having carriers pick up packages while on their routes. The experimental Parcel Return Service launched in 2003 allows merchants to collect returned packages at the same postal facilities where the mail was initially entered. The Postal Service is exploring options to grow the market for the return of recycled and take-back items. It also plans to develop a service to enable customers to have high-value packages held for pickup at Post Offices.
Customized MarketMail gives advertisers new design feeedom to help their messages stand out.
Innovative Customer Solutions
The Postal Service will continue to pursue customized solutions, such as negotiated service agreements, that add value to existing products. These may include bundling traditional products with special services, "round-trip" product offerings (both outgoing and reply pieces), and cross-product initiatives. One area of focus will be package services. The Postal Service's success in increasing the value of package services for small businesses and consumers resulted in revenue growth from both segments. For larger commercial shippers, the Postal Service has leveraged its last-mile capabilities to residences, especially for light-weight packages, but it has tended to lose high volume customers in other categories to competitors who offer steeply discounted or bundled prices. The Postal Service is committed to providing cost-effective solutions to meet commercial customers' package needs. These solutions will include evaluating a customer's entire process and developing customized solutions, which may include pricing flexibility based on volume, entry requirements, and bundled products.