As reported today in Mailing Systems Technology, Capitol Forum is reporting that U.S. Postmaster General Louis DeJoy is sunsetting the postage reselling program. This program has allowed Pitney Bowes, Stamps.com, and other resellers to offer smaller shippers sharply discounted rates for over thirty years and has provided a competitive channel for national package shippers outside of the classic FedEx/UPS model. The change was acknowledged by USPS spokesperson David Partenheimer in a July 9th email to Linn’s Stamp News. There is no indication that DeJoy’s intention is to adjust the reseller rates, but rather he intends to end the program entirely.
Several resellers and consolidators, Pitney Bowes in particular, have significantly increased market share since 2020, when the onset of capacity challenges drove shippers to explore other, non-standard avenues. While shippers have the benefit of pricing agreements with Pitney Bowes (and other resellers), these agreements have clauses that allow the carrier to adjust pricing in the event of a USPS pricing change.
As of now, the program will end on October 1, 2022, leaving reseller shippers little time to adjust their 2022 peak plans. This is a developing story and will certainly require all current USPS reseller shippers to seek other options to negate the potential impact of this change in operations. As new details are made available we will certainly provide them to you. A real question is how do these long time resellers intend to address this significant change in direction from the USPS.
If you have further questions on how this change could potentially impact your business, please reach out to us.
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