1 Shipping Services Price Change Effective January 26, 2014 Presented by: Eileen Brieck Sr Field Sales Rep Northern Ohio U.S. Postal Service Jan

2 Shipping Services  Domestic products  Priority Mail Express™  Priority Mail ®  Parcel Select ®  Parcel Return Service  First-Class Package Service ®  Standard Post™  Other Competitive Offerings

3 Shipping Services (cont’d)  International products  Global Express Guaranteed ® (GXG ® )  Priority Mail Express International™  Priority Mail International ®  First-Class Package International Service ®  International Priority Airmail ® (IPA ® )  International Surface Air Lift ® (ISAL ® )  Airmail M-Bag ®  Competitive Extra Services

4 Domestic Shipping Services Product Overall Average Increase Priority Mail Express 3.0% Priority Mail 0.0% Parcel Select 9.2% Parcel Return Service 3.0% First-Class Package Service 5.0% Standard Post 5.2%

5 5 Priority Mail Express ─ Retail Prices  New! 10:30 a.m. delivery w/ $5 fee  1/2 pound price from $16.95  Flat Rate Envelope $19.99  Flat Rate Box$44.95 Average Retail Increase ─ 3.1%

6 6 Priority Mail Express ─ new Zone 9  For Freely Associated States (FAS)  Palau, Micronesia, Marshall Islands  Separate zone to align price with cost of transportation

7 Priority Mail ─ Commercial Base Prices  Prices increase on average 0.0%  Average 11.0% lower than Retail prices  Flat Rate Envelope* $5.05  Legal Flat Rate Envelope $5.25  Padded Flat Rate Envelope $5.70  Flat Rate Box prices start at:$5.25 * Includes Regular Flat Rate Envelope, Small Flat Rate Envelope, Window Flat Rate Envelope and Gift Card Flat Rate Envelope.

8 Priority Mail ─ Commercial Plus Prices  Prices increase on average 0.0%  Average 14.3% below Retail prices  Prices start at $4.58  Account volume thresholds apply  Regional Rate Box also available  Annual account volume thresholds do not apply  Postage paid at Commercial Base prices

9 9 Priority Mail ─ Commercial Plus Cubic Prices  Price based on cubic measurement and zone  Five price tiers starting at $4.58  New! Lower account volume threshold  Cubic soft pack Priority Mail Open and Distribute ®  Only tray boxes entered at Priority Mail Commercial Plus prices are charged based on the tray box and zone to which sent rather than weight and zone

10 Parcel Select Overall Average Increase 9.2% Destination Entry Average Increase  DDU  DSCF  DNDC 8.0% 5.6% 5.1% Non-destination Entry Parcel Select Lightweight 5.9% 10.1%

11 Parcel Return Service Overall Average Increase 3.0% Average Increase by Category Return Network Distribution Center (RNDC)0.0% Return Sectional Center Facility (RSCF)0.0% Return Delivery Unit (RDU)5.7% PRS–Full Network0.0%

12 First-Class Package Service  Overall average increase is 5.0%  Commercial Base and Commercial Plus pricing  Free USPS Tracking and confirmation of delivery with Intelligent Mail ® package barcode (IMpb)

13 Standard Post  Overall average price increase is 5.2%  Free USPS Tracking  New! Zones 1-4 upgraded to Priority Mail* * except for HAZMAT and live animals  A “Retail” product with payment by stamps or meter; deposited at Retail counter or Package Pickup

14 International Shipping Services  Global Express Guaranteed (GXG)  Priority Mail Express International  Priority Mail International  First-Class Package International Service  International Priority Airmail (IPA)  International Surface Air Lift (ISAL)  Direct Sacks of Printed Matter to One Addressee (Airmail M-bags)  International Extra Services

15 Global Express Guaranteed (GXG) Average Overall IncreaseCommercial Base Price 3.0%Lower than Retail by up to 13%  Commercial Plus pricing  Annual revenue commitment required  Prices lower than Retail by up to 20%  Global Expedited Package Services – Non- Published Rates (GEPS – NPR) contracts

16 Priority Mail Express International Average Overall IncreaseCommercial Base Price 1.3%Lower than Retail by up to 11%  Flat Rate Box  $66.95 to Canada / $84.95 to rest of the world  Flat Rate Envelope  $35.95 to Canada/ $46.50 to rest of the world  Commercial Plus pricing  Prices lower than Retail by up to 20%  GEPS agreements

17 Priority Mail International Average Overall IncreaseCommercial Base Price 1.1%Lower than Retail by up to 13%  Flat Rate Envelope and Small Flat Rate Box Canada $20.55/ rest of world $24.75  Medium Flat Rate Box Canada $42.25/ rest of world $61.75  Large Flat Rate Box Canada $55.75/ rest of world $80.50  Commercial Plus pricing -- Prices lower than Retail by up to 19%  E-USPS DELCON INTL available to 12 more countries  GEPS agreements

18 First-Class Package International Service Average Overall IncreaseCommercial Base Price 0.8%Lower than Retail by up to 14%  Commercial Plus pricing  Prices lower than Retail by up to 19%  E-USPS DELCON INTL™ available to 12 more countries  Eligible for Package Pickup or Pickup On Demand service

19 Resources  Postal Explorer ® ─ pe.usps.com  Current and new prices  downloadable price files  Federal Register notices  link to the Postal Bulletin  Domestic Mail Manual (DMM ® ) and International Mail Manual (IMM ® )  DMM Advisory – posted on Postal Explorer  Also special updates. Subscribe via

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