U.S. Postal Service: Overview of Initiatives to Increase Revenue and Introduce Nonpostal Services and Experimental Postal Products Page: 13 of 37
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USPS Offers 12
Nonpostal Services, 8
Products, and at Least
Services for Federal
At the time PAEA was enacted, USPS was offering 12 nonpostal services
that it has continued to offer as a result of these services being
grandfathered by the PRC. Two of these are market dominant services,
including MoverSource (a service whereby the cost of changing a
customer's mailing address is defrayed through the sale of advertising)
and Philatelic Sales (sales related to the hobby of stamp collecting). The
remaining 10 are competitive services, including USPS's Passport Photo
Service. In fiscal year 2011, USPS reported to the PRC that it generated
net income totaling $141 million from its 12 nonpostal services and
related products. Appendix I provides additional information about each of
these grandfathered nonpostal services.
Since the enactment of PAEA, USPS has received approval from the
PRC to market test a total of eight experimental postal products. Four of
the eight approved market tests are for market dominant products, such
as First Class Tracer, which enables the tracking of First-Class letters
through the mail stream. The remaining four experimental products are
competitive products, including USPS's Gift Cards-experimental product
to test the feasibility of selling gift cards loaded with a specified sum of
money to consumers who could choose to mail the cards. Four of these
experimental products are an outgrowth of USPS's stakeholder
discussions on new revenue-generating initiatives and are discussed
USPS terminated one of the eight approved market tests-Collaborative
Logistics-a test to determine whether there was a market for renting
excess space on USPS's long-haul delivery trucks. While USPS
considered the market test successful, it did not seek to make
GAO-13-216 U.S. Postal Service
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United States. Government Accountability Office. U.S. Postal Service: Overview of Initiatives to Increase Revenue and Introduce Nonpostal Services and Experimental Postal Products, report, January 15, 2013; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc298921/m1/13/: accessed October 18, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.