Postal Service changes Priority Mail lineup to enhance shipping business

August 14, 2013

The U.S. Postal Service on Wednesday made changes to its Priority Mail lineup, offering free insurance and tracking along with day-specific delivery in an effort to boost shipping revenue for the financially ailing agency.

“Our revamped Priority Mail product line should be a game-changer in the shipping marketplace,” said USPS Chief Marketing and Sales Officer Nagisa Manabe. “We’re meeting the rising expectations of customers.”

(David Goldman/AP)
(David Goldman/AP)

Under the plan, Priority Mail will include up to $100 of insurance coverage free of charge. It also provides scheduled delivery — one-day, two-day or three-day — based on the origin and destination of the package.

The Postal Service’s package business had grown in recent years, increasing by more than 14 percent since 2011, the agency said. Meanwhile, first-class mail volume has declined, dropping by more than 6 percent over the same period, according to USPS figures.

The agency lost nearly $16 billion last year, followed by losses totaling about $4 billion for the first three quarters of 2013. USPS officials said during a conference call with reporters on Wednesday that the Priority Mail plan would bring in an estimated $500 million per year in additional revenue.

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Josh Hicks covers the federal government and anchors the Federal Eye blog. He reported for newspapers in the Detroit and Seattle suburbs before joining the Post as a contributor to Glenn Kessler’s Fact Checker blog in 2011.
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Josh Hicks | August 14, 2013