what’s usps bringing to the b2c market? jesus barona mgr., business alliances u.s. postal service...
TRANSCRIPT
What’s USPS Bringingto the B2C Market?
Jesus BaronaMgr., Business Alliances
U.S. Postal Service
April 2013
USPS Parcels“Navigating the Options”
USPS Parcels“Navigating the Options”
Topics
eCommerce trends What are my options?
Lightweight Expedited Ground
Returns done right How to engage USPS Conclusion - Why USPS?
Market forecast
Online retail spending to increase 62% within three years
By 2016, U.S. consumers will be spending $327B online each year
Forrester ResearchForrester Research
eCommerce
Shipping trendsUS Retail e-Commerce Sales, 2010 – 2016 ($B, % ch.)
Businesses are selling more products online and shipping them to the home!Businesses are selling more products online and shipping them to the home!
comScorecomScore
eCommerce
eCommerce goods being shipped
Digital contentConsumer electronicsFlowers, greetings & misc.Computers & peripheralsApparel & accessoriesEvent tickets
Consumer packaged goods Jewelry & watches Home & garden Books & magazines Sport & fitness Office supplies Video games & accessories Furniture & appliances
VERY STRONG GROWTH15% or higher
VERY STRONG GROWTH15% or higher
STRONG GROWTH10–14%
STRONG GROWTH10–14%
eCommerce
Shipping challenges for e-tailers
Consumer expectations
Consumer expectations
Free shipping — the new ‘normal’Free shipping —
the new ‘normal’
Mobile accessMobile access
ReturnsReturns
Delivery choicesDelivery choices
eCommerce
eCommerce shipping market
USPS share growing USPS core strengths
Every house / every day Pickup and delivery Outbound & returns
Lightweight advantage Consumer access NO hidden surcharges/fees
eCommerce$202B annual
retail sales2.4B pieces
eCommerce
Lightweight Shipments – (under 1 lb.)
First-Class Package Service Pricing Options
Commercial Base - up to 13 oz. Commercial Plus - up to 1 lb.
Service standard 1-3 days
Parcel Select Lightweight High volume; up to 1 lb. Priced by weight, presort level
and entry pointSERVINGSERVING
• E-tailers who want to offer free shipping• Any lightweight fulfillment
• E-tailers who want to offer free shipping• Any lightweight fulfillment
What are my options?
Expedited weight/zone
Priority Mail Weight/Zone Self-packaging or branded packaging choices Envelopes, boxes, padded, soft-pack Available with cubic pricing
Priority Mail Cubic Space-efficient shipping up to 0.5 cubic feet Postage based on distance and
cubic volume - not weight Commercial customers Threshold 150,000 annually Soft-pack and padded options
Expedited ExtrasExpedited Extras
• 2-3 day delivery• Included in price:
– Pick up– Tracking– Forwarding/return– Delivery confirmation
• 2-3 day delivery• Included in price:
– Pick up– Tracking– Forwarding/return– Delivery confirmation
What are my options?
Expedited Flat Rate Priority Mail Flat Rate
Six envelopes and six boxes to choose from 2-3 day delivery 75,000 combined parcels/flats for Commercial Plus Padded envelope fulfillment option – cushioned ride
Priority Mail Regional Rate Best selling shipping boxes High-volume, short-haul market Highly competitive Zones 1-4 Three sizes, five boxes total Box C — largest USPS-produced
box for commercial use
Flat Rate BenefitsFlat Rate Benefits
• Save costs – no weighing, rating• If it fits it ships – up to 70 lbs • Free branded packaging delivered
• Save costs – no weighing, rating• If it fits it ships – up to 70 lbs • Free branded packaging delivered
What are my options?
Expedited Flat Rate (cont’d) Express Mail Flat Rate
Overnight guaranteed Commercial Plus 5,000 pcs/yr. PC Postage, IBI meter, permit imprint or ePostage Three envelopes including new padded; new Flat Rate Box
Critical Mail 1-3 day delivery Letters to 3 oz. - Flats to 13 oz. Event tickets, documents Secure delivery on first attempt Threshold 5,000 annually
Flat Rate BenefitsFlat Rate Benefits
• Save costs – no weighing, rating• If it fits it ships – up to 70 lbs • Free branded packaging delivered
• Save costs – no weighing, rating• If it fits it ships – up to 70 lbs • Free branded packaging delivered
What are my options?
Ground shipments – (1-70 lbs.) Full Network
Parcel Post – no longer available New Options:
Standard Post – Retail Parcel Select nonpresort – Commercial
Parcel Select End to End 1st mile - last mile Workshare discounts - six entry levels National and Regional third-party logistics providers/partners
What are my options?
Returns and Online Purchasing
5% to 30% of sales end up as a return Average 8.5% High tech returns up to 20% Apparel > 30%
$100 billion in goods returnedeach year
Nearly half following holiday season Can be costly to merchant
2-3 times cost of outbound shipment If poorly handled, erodes profits Impact on repeat orders, customer loyalty
Consumer Returns
Consumer returns (C2B shipping)
Fast growing Primarily ground
Less time-sensitive than outbound
Huge business impact Consumers seek convenient,
low- or no-cost Merchant returns policy
influences purchase decision,customer retention online
Consumer Returns
85% of
customers WILL
NOT shop again
if the return
process is not
convenient
0%
0%
0%
1%
1%
1%
1%
95% of
customers WILL
shop again if
the return
process is
convenient
Impact of a negative returns experience
Impact of a positive returns experience
With a positive returns experience―customer returns to shop again Repeat purchases by existing customers require up to 90% less marketing
effort than new purchases
Returns—business impact
Consumer Returns
USPS Returns
Merchant-paid and ROYO options Consumer and merchant convenience
Cloud-based labels Scan-based payment Package pickup,
tracking Data exchange
(inventory,customer relations)
• Top Internet retailers•Existing partners•Businesses looking for ROYO solutions
• Top Internet retailers•Existing partners•Businesses looking for ROYO solutions
SERVINGSERVING
USPS Return Options
* In some cases, consumers elect not to use the convenience label and choose ROYO instead
Two main categories ROYO followed by significant number of merchants
First Mile (PRS)
Convenience Labels*
Merchant pays shipper
59% of merchants
Permit
End-to-End(MRS, PRS, SBP)
ROYO
Consumer pays shipper
41% of merchants
POS APC CNS
Priority Mail
First Class Package
Parcel Post
Returns — options (C2B)
USPS Return Options
How to engage USPS
Atlanta Field Sales: Michael Malone
Mgr., Shipping & Mailing SolutionsAtlanta District – U.S. Postal ServiceOffice: 770-935-2216Mobile 770-861-0439email: [email protected]
Business Alliances: Jesus Barona
Mgr., Business AlliancesU.S. Postal Service
Office: 404-585-8331 email: [email protected]
Why USPS?B2C fulfillment priced right—ground,
expedited, flat-rate, lightweight, cubicand regional choices
Best Consumer returns solution in the marketFree packaging, pickup and trackingVisibility for mailing and shippingConvenience—more locations, mobile accessSecure mailbox and convenient delivery options
(GoPost, Hold For Pickup) Upfront costs – NO hidden surcharges/fees
Conclusion