Shaping a More Efficient Future Pricing Change Effective

Shaping a More Efficient Future Pricing Change Effective Monday, May 14 1

Shaping a More Efficient Future Periodicals July 15 Implementation § Outside-County – More complex container rate application – Bundle rates based on sort level and container level – Container rates based on container type, level, and entry § Allow time for software development 2

Shaping a More Efficient Future Request for Reconsideration § Standard Mail flats § Nonmachinable surcharge for First-Class Mail letters § Priority Mail Flat Rate Box 3

Shaping a More Efficient Future New Prices § Reflect changes in operations and the marketplace § Offer more choices § Include incentives § Reduce undeliverable-as-addressed mail § Better reflect that shape matters 4

Shaping a More Efficient Future First-Class Mail® Forever Stamp § § Booklets and sheetlets Available April 12 Single-piece rate 41¢ Good forever 5

Shaping a More Efficient Future First-Class Mail® Shape Matters – Single-Piece § Letters 41¢ – Nonmachinable surcharge 17¢ § § Additional ounce 17¢ Postcards 26¢ Flats 80¢ Parcels $1. 13 6

Shaping a More Efficient Future First-Class Mail® Shape Matters – Letters § Maximum weight 3. 5 ounces – Pieces that exceed 3. 5 ounces or any letter-size dimension are charged as flats Minimum Maximum Length 5 inches 11 -1/2 inches Height 3 -1/2 inches 6 -1/8 inches Thickness 0. 007 inch 1/4 inch Nonmachinable letters weighing 1 ounce or less will be charged 17¢ nonmachinable surcharge. 7

Shaping a More Efficient Future First-Class Mail® Shape Matters – Flats § Maximum weight 13 ounces – Pieces that exceed any dimension are charged as parcels Minimum* Maximum Length 11 -1/2 inches 15 inches Height 6 -1/8 inches 12 inches Thickness 1/4 inch 3/4 inch *Flats exceed at least one of these dimensions. Flats with the following characteristics are also subject to parcel prices: § Not flexible § Not rectangular § Not uniform in thickness 8

Shaping a More Efficient Future First-Class Mail® Shape Matters – Lower Prices § Lower prices for – Letters over 1 ounce – Flats over 6 ounces 9

Shaping a More Efficient Future First-Class Mail® Shape Matters – Example § Flat-size to letter-size envelope 97¢ 58¢ Save 39¢ 2 -ounce example 10

Shaping a More Efficient Future First-Class Mail® Shape Matters – Example § Parcel to flat 97¢ $1. 30 Save 33¢ 2 -ounce example 11

Shaping a More Efficient Future First-Class Mail® Workshare § Presort and automation flats additional ounce 17¢ § Automation letter additional ounce 12. 5¢ § Maximum weight – Presort letter 3. 3 ounces – Automation letter 3. 5 ounces 12

Shaping a More Efficient Future First-Cass Mail® Automation Letters § Automation Carrier Route rates eliminated § No change to rate eligibility 5 -Digit/Scheme Overflow Mail 5 -digit/scheme optional 3 -Digit/Scheme Overflow Mail AADC Overflow Mail 3 -digit/scheme AADC Mixed AADC § Require 85% full trays § Reduced overflow option 13

Shaping a More Efficient Future First-Class Mail® Machinable Letters § Simplified tray preparation Origin 3 -digit AADC Mixed AADC 14

Shaping a More Efficient Future First-Class Mail® Automation Flats Must be § Flexible § Rectangular § Uniformly thick 15

Shaping a More Efficient Future First-Class Mail® Presorted Parcels § New rate structure 5 -digit 3 -digit ADC § Barcodes required – UCC/EAN Code 128 – or POSTNET 16

Shaping a More Efficient Future Priority Mail® Flat Rates Price Flat-Rate Envelope Flat-Rate Box $4. 60 $9. 15 17

Shaping a More Efficient Future Priority Mail® Dimensional Weight and Balloon Rate Pricing § Dimensional weight Zones 5 -8 § Balloon rate Local and Zones 1 -4 § USPS-complimentary packaging not subject to either § Lower prices for heavier items 18

Shaping a More Efficient Future Priority Mail® Dimensional Weight Pricing Example Zone 8, 10 pound, 1. 6 cubic foot parcel $30. 50 Reduce size by 25% to 1. 2 cubic feet $26. 35 Save $4. 15 19

Shaping a More Efficient Future Express Mail® New 1 -Pound Price Post Office to Addressee Price 1/2 pound (flat-rate envelope) $16. 25 1 pound $19. 50 2 pounds $21. 40 20

Shaping a More Efficient Future Standard Mail™ Initiatives § § Greater recognition of shape Eliminate DDU rate for letters Drop ship closer to destination Detached Address Label surcharge 21

Shaping a More Efficient Future Standard Mail™ Automation Letters § ECR automation rates eliminated § No change to rate eligibility 5 -Digit/Scheme Overflow Mail 5 -digit/scheme optional 3 -Digit/Scheme Overflow Mail AADC Overflow Mail 3 -digit/scheme AADC Mixed AADC § Require 85% full trays § Reduced overflow tray option 22

Shaping a More Efficient Future Standard Mail™ Machinable Letters § Simplified tray preparation Optional Origin/Entry 3 -digit AADC Mixed AADC 23

Shaping a More Efficient Future Standard Mail™ Nonmachinable Letters § Separate structure 5 -digit 3 -digit ADC Mixed ADC 24

Shaping a More Efficient Future Standard Mail™ ECR Letters § New tray preparation for barcoded automation-compatible letters 3 ounces or less § No change to preparation for nonautomation and pieces weighing over 3 ounces § DSCF-entry rates allowed for some DDU entry 25

Shaping a More Efficient Future Standard Mail™ Flats § Changes to flat-size mailing standards – Cover costs – Efficient processing and delivery 26

Shaping a More Efficient Future Standard Mail™ Automation Flats § Must be – Flexible – Rectangular – Uniformly thick § Maximum thickness 3/4″ § Minimum size 5″ x 6″ 27

Shaping a More Efficient Future Standard Mail™ Flexibility Test Length runs parallel to the surface Flats over 10 inches long that contain a rigid insert; length perpendicular to surface 28

Shaping a More Efficient Future Standard Mail™ Nonautomation Flats § Not required to meet all automation standards 29

Shaping a More Efficient Future Standard Mail™ Enhanced Carrier Route Flats § Not required to meet all automation standards § ECR maximum size 12″ x 15″ § No change to preparation 30

Shaping a More Efficient Future Standard Mail™ Parcels § New rate structure Machinable rate tiers 5 -digit BMC Mixed BMC Irregular rate tiers 5 -digit 3 -digit ADC Mixed ADC § DDU-entry option § Barcodes required 31

Shaping a More Efficient Future Standard Mail™ Not Flat-Machinable § Rigid pieces § USFM 1000 standards § Provides an additional option 32

Shaping a More Efficient Future Standard Mail™ Not Flat-Machinable § Preparation – 6 ounces and over – machinable parcel preparation – Less than 6 ounces – irregular parcel preparation § Barcodes required § Rate marking required – “NFM” or “Not Flat-Machinable” § DDU entry rates 33

Shaping a More Efficient Future Standard Mail™ Parcel Drop Ship Pricing Example 8 oz. mach parcel, basic presort, BMC drop ship $1. 006 Enter at DDU 59. 2¢ Save 41. 4¢ 34

Shaping a More Efficient Future Standard Mail™ NFM Pricing Example 4 oz. rigid mailpiece, 5 -digit presort, DSCF 44. 4¢ NFM rate Use auto-compatible flexible packaging 32. 0¢ Auto flat rate Save 12. 4¢ 35

Shaping a More Efficient Future Package Services Initiatives § § 20 -pound balloon rate Barcodes required on Parcel Select Nonpresorted Bound Printed Mail rate Scheme preparation required for BPM, Library Mail and Media Mail 36

Shaping a More Efficient Future Extra Services § New low-cost One. Code Address Change Service § Redesigned Insurance – Barcoded and scanned – $200 and less no signature required § Lower electronic return receipt fee 37

Shaping a More Efficient Future Extra Services § Continue Post Office Box realignment – Caller service now aligned with fee groups § Business Reply Mail prices based on shape § Confirm maintains tiered structure § Annual mailing and permit fees increase 38

Shaping a More Efficient Future International New Shipping and Mailing Options § § Global Express Guaranteed® Express Mail International Priority Mail International First-Class Mail International 39

Shaping a More Efficient Future International Online Discounts § Global Express Guaranteed® – 10% § Express Mail International – 8% § Priority Mail International – 5% 40

Shaping a More Efficient Future International Global Express Guaranteed® § Expedited date-certain delivery service 41

Shaping a More Efficient Future International Express Mail International § Reliable 3 - to 5 -day service § Flat-Rate envelope option 42

Shaping a More Efficient Future International Priority Mail International § Reliable 6 - to 10 -day service § Flat-Rate box and envelope options 43

Shaping a More Efficient Future International First-Class Mail International § Reliable and economical § For documents and lightweight items 44

Shaping a More Efficient Future International Business Services § International Priority Airmail § International Surface Airlift § M-Bags 45

Shaping a More Efficient Future Resources USPS. com § § Pricing change – usps. com/ratecase Postal Explorer – pe. usps. com Mail. Pro – usps. com/mailpro DMM Advisory – dmmadvisory@usps. com 46