The USPS is ending a program through which smaller shippers could purchase discounted shipping through third-party resellers. The Postal Service made no official announcement about the end of the program that we could find, leaving online sellers on a Friday summer afternoon worrying about the possible ramifications and unable to get answers. (See update from the USPS and from Amazon below.)
Linn's Stamp News
broke the story Friday afternoon, reporting, "Postmaster General Louis DeJoy has killed a 30-year-old program that allowed some businesses to send packages at sharply discounted postage rates," and it referred to it as the "postage reselling" program.
According to Linn's, the end of the program would impact a number of companies, including Stamps.com and Pitney Bowes.
However, we don't believe this will impact the ePostage and PC Postage programs on which many sellers rely and that are
explained on the USPS website, where it states, "Some of the largest online marketplaces are using the ePostage payment method." Those providers offer Commercial Base Pricing, which is not going away.
There had been a
kerfuffle over the reseller program in 2016 with accusations that some online postage providers were exploiting a program meant to attract shippers that would otherwise go to USPS alternatives.
In a heavily redacted report
in 2018 by the USPS Office of Inspector General (OIG) titled, "Postal Partnerships: The Complex Role of Middlemen and Discounts in the USPS Package Business," it explored the issue in detail. In it, it explained the role of PC Postage providers versus resellers:
"PC Postage providers help shippers print and pay for official USPS postage from their computers.
""Resellers" are intended to act as outsourced Postal Service sales representatives that recruit small-and-medium-sized shippers."
As the Inspector General noted, "The links between these partners are extraordinarily complex, as they often work together to serve different aspects of a shipper's needs."
The Postal Service is transparent about Retail rates (postage you buy at the post office) and Commercial Base rates (postage you buy online) - you can find rates on
this page.
We're perplexed about how the USPS could end the postage reseller program without going through the Postal Regulatory Commission and without publicly announcing the end of the program, instead reacting to inquiries with a one-paragraph response that explains little.
It's important to note that any increase in postage costs has a multiplier effect since marketplaces like eBay and Etsy charge a commission on shipping.
But unless you're getting rates below Commercial Base, we're guessing there's no cause to panic. If we learn otherwise, we'll let you know.
Update 7/16/2022: The USPS provided EcommerceBytes with the following statement:
"The Postal Service undertook an evaluation of its reseller program and has determined that the program as currently structured is not resulting in the customer benefits and efficiencies that were originally envisioned, has caused difficulties in monitoring compliance with pricing and other terms, and should be discontinued."
We asked the spokesperson if they could tell us what the reseller program is and if it's different from the ePostage program.
Update 7/16/2022: Amazon provided the following response to our inquiry:
"There is no impact to Amazon or sellers as it pertains to this change."
We asked the spokesperson if Amazon had a Negotiated Service Agreement with the USPS.
Update 7/19/2022: eBay responded to seller concerns
today (Tuesday).
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