USPS® RETHINK SHIPPING

2016 Shipping Services Prices Commercial Changes

Presented by: Sojeva Ortega

Business Alliances ManagerHeadquarters

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USPS® RETHINK SHIPPING

Agenda History

USPS Value

First-Class Package Service

Priority Mail Express & Priority Mail

Parcel Select

Domestic Changes

International Changes

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USPS® RETHINK SHIPPING

History No increase to Priority Mail in 2015, price reductions in 2014

The most recent Priority Mail price increase was in January 2013

Average annual price increase of 4.4% this decade for all competitive products

The Postal Service continues to be the only commercial carrier offering ounce-based pricing for lightweight shipments

The Postal Service does not dimensionally weight packages below 1 cubic foot (1728 cubic inches)

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USPS® RETHINK SHIPPING

USPS Value The Postal Service has made significant investments to support growing

business-to-consumer and ecommerce marketplace

Predictable, consistent prices with no accessorials

Priority Mail and First-Class Package Service provide reliable, fast 1-3 day transit time nationwide

Delivery 6 days per week at no additional charge

World-class package tracking and visibility

Multiple options for label generation and payment

Expert support to onboard new customers

Customer support network

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USPS® RETHINK SHIPPING

No unexpected surcharges

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NO fuel surcharge

NO delivery area surcharge

NO extended delivery area surcharge

NO residential surcharge

NO extra charge for regular Saturday delivery1

NO charge for forwarding your Priority Mail® package

NO charge for return of your Priority Mail package if undeliverable or unclaimed

1. Saturday delivery available except if a national holiday. On the rare occasion when Saturday is a national holiday, Priority Mail Express service is available for an added charge.

USPS® RETHINK SHIPPING

Domestic product comparison chart

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1 Exclusions apply. Please see usps.com® or a Sales Representative.

USPS® RETHINK SHIPPING

First-Class Package Service Commercial Plus Pricing eliminated

(14 to 15.99 oz.)

Commercial Base Pricing now includes ounce-based pricing up to 15.99 ounces

Overall average increase is 12.8%

Eliminated ounce-based pricing below 8 oz – flat rate up to 8 oz

Eliminated presort options (ADC, 3 Digit, 5 Digit) – limited usage but still available vis Negotiated Service Agreement

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Weight Not Over (Oz.) Single Piece

1 2.602 2.603 2.604 2.605 2.606 2.607 2.608 2.609 3.3010 3.3511 3.4012 3.4513 3.5014 3.5515 3.60

15.999 3.65Non-machinable surcharge 0.20IMpb Noncompliant Fee 0.20

Commercial Parcels

USPS® RETHINK SHIPPING

Priority Mail Express Commercial Base and Commercial Plus will be the same published rate

Commercial Base/Plus prices will be 10% less than Retail prices

Overall average increase 15.6%

Eliminate Priority Mail Express Flat Rate Box

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Priority Mail Express - Comm Base/Comm Plus Flat Rate Envelope 20.66Legal Flat Rate Envelope 20.66Padded Flat Rate Envelope 20.66

Weight Not Over (Lbs) L, 1 & 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8 Zone 90.5 20.66 20.66 21.33 23.18 24.80 26.33 28.08 34.251 20.66 21.56 25.97 29.07 30.11 31.95 32.94 40.192 20.66 23.00 28.31 31.68 32.99 34.92 36.14 44.103 20.66 24.08 31.82 36.45 38.03 40.28 41.40 50.494 20.66 25.65 33.93 41.22 42.84 45.36 46.58 56.845 21.60 28.80 36.18 44.10 48.15 50.45 51.80 63.186 24.71 32.99 41.94 50.13 52.74 55.44 57.15 69.717 27.09 36.14 48.06 54.81 57.29 60.57 62.73 76.558 29.75 39.65 52.07 58.95 62.19 65.75 67.55 82.409 30.92 41.22 54.00 63.05 67.01 70.83 72.72 88.74

10 32.54 42.98 56.07 65.88 70.47 74.48 76.37 93.15

Zones

USPS® RETHINK SHIPPING 9

Priority Mail Commercial Base – 9.4% average increase

Commercial Plus (including Cubic) – 13.3% average increase

Eliminate Regional Rate Box C

Eliminate Critical Mail

Priority Mail Open and Distribute – 10% increase Priority Mail - Comm BaseFlat Rate Envelopes 5.75Legal Flat Rate Envelope 5.75Padded Flat Rate Envelope 6.10Small Flat Rate Box 6.10Medium Flat Rate Boxes 11.95Large Flat Rate Boxes 16.35APO/FPO/DPO Large FRB 14.35

Weight Not Over (Lbs) L, 1 & 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8 Zone 91 5.75 5.95 6.05 6.20 6.33 6.62 7.16 9.762 6.01 6.15 6.60 8.15 8.92 9.70 10.77 14.953 6.09 7.09 8.17 9.75 11.47 12.40 14.47 20.284 6.71 7.90 8.75 10.66 13.37 15.14 17.09 24.415 7.39 7.99 9.01 11.26 15.22 17.41 19.81 28.30

Zones

USPS® RETHINK SHIPPING

Parcel Select Overall average increase 3.1 % for 1 lb+ Parcel Select

Parcel Select Nonpresorted rebranded as Parcel Select Ground

DNDC – 5.1%; DSCF – 4.5%; DDU 4.5%; Ground 1.9%

ONDC and NDC presort categories eliminated

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Parcel Select Lightweight Overall average increase 23.5% for under 15.99 ounces

Eliminate ounce-based pricing below 8 oz- flat rate up to 8 oz

Ounce-based pricing for 9-12 oz and 13-16 oz category

Eliminate Machinable/Irregular distinction- one price table

USPS® RETHINK SHIPPING 11

Other Domestic Changes

Premium Forwarding up 3.6% to $18.65, online price $17.10

Adult Signature up 3.6% to $5.70

Restricted Delivery up 3.5% to %5.95

Package Intercept up 3.3% to $12.55

Competitive Post Office Box prices up 3.5% on average

Click-N-Ship will no longer be an authorized payment method for Priority Mail Express and Priority Mail Commercial Base Pricing.

USPS® RETHINK SHIPPING 12

International Changes Global Express Guaranteed up 7.1%

Priority Mail Express International up 11.6%

Priority Mail International up 10.2%

International Priority Airmail up 4.2%, IPA M-Bags up 3.5%

International Surface Airlift up 6.3%, ISAL M-Bags up 5.3%

Airmail M-Bags up 9.2%

First-Class Package International Service up 21.5%

USPS® RETHINK SHIPPING

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