U.S. Postal Service: Overview of Initiatives to Increase Revenue and Introduce Nonpostal Services and Experimental Postal Products Page: 28 of 37
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Appendix II: USPS's Approved Market Tests
for Experimental Postal Products, as of
November 30, 2012
timeframe for market annual revenue
No. test, at approval Description at approvala Status
7 Gift Cards (-May 1, This market test allows customers to <10 million Ongoing. USPS entered into an agreement
2011 to ~April 30, purchase gift cards loaded with a specified with American Express and currently offers
2013) sum of money that may be sent through the this vendor's gift cards at about 5,200
mail. According to USPS, the sale of gift USPS retail locations. The test is
cards at selected retail postal locations expected to be completed by May 2013.
increases customer convenience and Revenue: According to USPS, this
enhances postal revenue by encouraging product generated $96,000 in revenue
customers to use the mail for gifting purposes. during fiscal year 2011 and is expected to
USPS activates the card and earns a generate about $1.1 million during fiscal
negotiated percentage of each card's year 2012.
activation fee. The remainder of the fee is
remitted to the issuer of the card. In its
request for approval of the market test, USPS
indicated that it intended to enter into an
agreement with one or more card providers.
USPS also indicated that it might test different
activation fees, which typically range from
$3.95 to $5.95 depending on the value and
type of the gift card.
8 Metro PostTM (-Nov. Metro Post is a same-day delivery service for 10 million- Ongoing. PRC approved the market test
2012 to Oct. 2013) local buyers who purchase products from 50 millionb for Metro Post on November 14, 2012.
participating online e-commerce companies USPS selected San Francisco as the first
(and associated retailers) in selected city for testing. The market test began on
metropolitan areas. According to USPS, it December 17, 2012.
anticipates entering into relationships with up Revenue: Not yet available.
to 10 online e-commerce companies over the
course of the market test. Metro Post is
intended to test the operational feasibility of
same-day package delivery to/from multiple
locations and to help USPS determine the
optimal pricing structure for the service.
Source: GAO Analysis of USPS and PRC documents.
aThis column provides information on the amount of revenue USPS expected to generate from the
market test when it announced its intention to initiate the test.
bUSPS requested, and received, the PRC's approval to exceed the $10 million annual revenue
cThis test did not anticipate any revenue to USPS. The agency conducted the test free of charge to
the parties involved.
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/m1/28/: accessed December 15, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.