Usps Reseller Agreements

The Capitol Forum says that “inherent design errors in the program have made it easier for some mail sellers to offer reduced shipping fees to existing USPS customers in order to meet volume requirements and maximize their profit margins.” About six years ago, a “reseller” program was put in place to push sales to the USPS. Many customers have benefited from relatively small discounts. But Stamps.com, which has become a major retailer, has reaped the rewards of a range between its reduced postage price and the selling price for users, depending on people who are familiar with the deal. The spread, which varied according to the traffic strip but could reach double digits, became known in commerce as “Postal Arbitrage”. The reseller program, which was part of a “Negotiated Service Agreement,” had expanded to the point where resellers were selling stamps and labels to suppliers that did not meet USPS volume requirements to qualify at lower prices, according to a report by the Capitol Forum, a 2017 investigative agency. A separate report from the USPS Inspector General this year estimated the annual loss for USPS due to the alleged misuse of the programs at more than $1 billion. Gordon Glazer, Shipware parcel consultant, LLC and USPS shipping expert, does not purchase the line Stamps.com that imposed exclusivity on USPS. Glazer said the quasi-government agency seemed ready to either stop or at least call for substantial reforms to the reseller program, originally structured to protect and strengthen the USPS`s parcel share, but which was “out of control.” When she saw the writing on the wall and wasn`t ready to accept changes in the status quo, Stamps.com went, Glazer said. For nearly 20 years, the U.S.

Postal Service and Stamps.com (NASDAQ:STMP) have had a marriage of complacents. As a USPS certified reseller, Stamps.com promoted the value of the USPS service to prevent transactions from converting to rivals FedEx Corp. (NYSE:FDX) and UPS Inc. (NYSE:UPS). One of the Stamps.com units, Endicia, provided USPS with the code name “Dazzle” which allowed users to print Porto on their computers without supporting the traditional and tedious USPS event authorization process. In return, Stamps.com received commissions ranging from 0.5 to 1.5% for label processing services. The U.S. Postal Service® offers a variety of shipping and shipping options for consumers. Through a number of agreements on authorized postal operators® customers can buy stamps, send a letter or send a parcel without ever visiting a traditional post office™.

Retailers can attract additional customers by offering postal products and services. Together, we offer comfortable postal services where customers live, work and buy. PC shipping companies have become large resellers of cheaper port because they manufacture the stamp prints (indexes) needed for enhanced portos. Using a mail-order seller, The Capitol Forum said it “received CPP awards although we did not meet USPS volume requirements.” USPS may have good reason to terminate or restructure the reseller program. However, the lack of Stamps.com, which has been a key factor in the growth of USPS packages, would hurt, Glazer said. “Now you have a despised partner that will actively promote competitive carrier solutions across all platforms,” he said.

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