GROWTH DRIVEN…FUELING YOUR MAILING AND SHIPPING SUCCESS

Shipping Overview

Agenda

Shipping Overview

Consumer & Shippers Expectations

USPS Package Portfolio Advantages

USPS Package Portfolio

AGENDA

CUSTOMER EXPECTATIONS

Reliability Fast Delivery Secure Delivery to the HomeChoicesConsistency

FAST AND RELIABLE EVERY DAY OF THE WEEK

First carrier to market for Sunday delivery Extensive national network Delivery by seasoned professionals who know your

residential customers and their delivery preferences Reliable service levels driven by industry-best last

mile (~99%) Protection of the Inspection Service Partnership with an organization committed to

providing competitive, fair prices and a high level of service

Ounce based pricing with expedited transit (First Class Package Service)

1-3 Day Delivery in most markets Alaska, Hawaii, & US Territories - Domestic Rates No fuel or Delivery Area surcharges Free forwarding and return, packaging supplies,

and carrier pickup. End to end tracking Convenient locations Most trusted agency

USPS VALUE

PRIORITY MAIL EXPRESS

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Product Overview Our fastest domestic service, with limited exceptions,

available 365 days a year, with a money-back guarantee1 and delivery shipping to most U.S. addresses, including PO Boxes™2. Beginning at $25.50 at Post Office™ locations and online.

1.Exceptions apply. For details, visit the Domestic Mail Manual.2.Scheduled delivery date depends on origin, destination, and drop-off time. Some restrictions apply. For additional information, visit the Price Calculator.

Features Free Package Pickup service at your home or office Price includes proof of delivery signature record Includes up to $100 of insurance with most shipments Overnight scheduled delivery by 10:30 am, or on a

Sunday or holiday available in many major markets for an additional fee

PRIORITY MAIL

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Product Overview Get more for your money with fast domestic service,

including flat rate shipping, in 1, 2, or 3 business days1 based on where your package starts and where it’s being sent. Beginning at $7.35 at Post Office™ locations and online.

1.In most cases, the expected delivery date printed on your receipt or provided at checkout will reflect a delivery time of 1, 2, or 3 business days and is based on origin, destination, and drop-off time. The expected delivery date does not come with a money-back guarantee.

Features Free Package Pickup service at your home or office Includes USPS Tracking® Delivery in 1 to 3 business days Includes up to $50 of insurance with most shipments

(restrictions apply) No surcharges for fuel or residential, rural, and regular

Saturday delivery

FIRST CLASS PACKAGE SERVICE

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Product Overview USPS First Class Package Service is a fast, cost-

effective way to ship lightweight packages weighing up to 15.99 ounces to any U.S. destination. Deliveries can be shipped to any U.S. address, PO Box, and many APO/FPO/DPO destinations.

Features Pricing for First Class Package Service is based on

weight by ounces and shipping distance. There are no fuel surcharges for residential or rural

deliveries USPS Tracking is included for free

RETAIL GROUND

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Product Overview Retail Ground® is a reliable and economical way to

ship less-than-urgent deliveries and oversized packages. From $7.35 at a Post Office.

Features Good for packages too large for Priority Mail Express and

Priority Mail delivery. Includes USPS Tracking®. Only available at USPS Post Offices. Available for shipments up to 70 lbs. and up to 130 inches

in combined length and girth.

PARCEL SELECT

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Product Overview Parcel Select is often referred to as the Postal Service’s

last mile product. Parcel Select has a lightweight (under one pound) component and a heavyweight (one pound or greater) component.

Features Parcel Select is a workshare program that leverages

the world-class processing and transportation network of consolidators with the unmatched reach of the Postal Service’s delivery network.

RETURNS OPTION

RETURNS

PRIORITY MAIL OPEN & DISTRIBUTE (PMOD)

Product Overview Open and Distribute Service provides an easy alternative to mailer

drop shipments for customers who want to expedite their mailings of certain mail classes to domestic destination postal facilities. The enclosed mail is processed and provided the appropriate service from the mail processing facility to the destination delivery unit.

Features The shipment receives Priority Mail Express® and Priority Mail®

service between the acceptance BMEU or Associate Post Office™ with acceptance function and the destination facility.

DIM doesn’t apply Pallet service is available through NSAs

SHIP FROM STORE (SFS)

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What is Ship From Store (SFS)? Ship From Store (SFS) is

an omnichannel fulfillment strategy by which retailers use stock from their brick-and-mortar stores to fulfill online and in-store orders, transforming stores into distribution hubs.

How SFS Works Order is placed Order Management System (OMS)

routes to store Store employee picks item Store employee packages item for

shipping Package is picked up at scheduled

time Customer receives package

SHIP FROM STORE BENEFITS

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Ship from Store is a win-win for everybody Retailer’s benefits: Maximize inventory Reduce shipping costs Higher sell-through rates Fewer out-of-stock items Lower cart abandonment Higher gross margins by leveraging entire

inventory and avoiding markdowns Ability to offer a broader array of products Customers benefits, too:

Access to any product from inventory Quicker delivery to customers Consistent brand experience across

all channels

ADULT SIGNATURE SERVICES 18 YEARS OF AGE OR OLDER

ADULT SIGNATURE SERVICES

ADULT SIGNATURE SERVICES – CURRENT OFFERING

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First-Class Package Service – Commercial

Priority Mail Express

Priority Mail

Parcel Select

Parcel Select Lightweight

Available for Commercial and PC Postage Vendors Only

Available at USPS Retail Locations for Pickup Only

June 2011 two options for Adult Signature 21 years of age or older was offered to USPS customers: Required: Delivery to a recipients that are 21 years of age or older Restricted: Requires the signature of the addressee (or authorized agent)

who is 21 years of age or older

Five Available Products:

ADULT SIGNATURE SERVICES – ENHANCEMENTS

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Product FeeAdult Signature Required $6.35Adult Signature Restricted Delivery $6.66 Adult Signature Services 18 years of age or older Required and

Restricted Delivery available for Negotiated Service Agreements (NSAs) only No additional Extra Services will be allowed Update human readable text above the IMpb on the shipping

label

Fee for Adult Signature Services 21 or 18 years of age or older are the same:

ELECTRONIC SIGNATURE ONLINE (eSOL)

ESOL

ELECTRONIC SIGNATURE ONLINE (ESOL)

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Customers who sign-up for Informed Delivery will be able to use Electronic Signature Online to authorize delivery for the following products/Extra Service: Priority Mail Express Signature Confirmation Insurance over $500

Customer Logs into Informed Delivery

Provide an ‘eSignature’

Expand the eSignature Online tool to more complex products and to additional Postal functions: Certified Mail Registered Mail Forms for Onboarding Customers Supply Chain Management – Contracts

CUSTOMER EXPERIENCE

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USPS Electronic Signature Online™ (eSOL®)

1 Customer is alerted via Informed Delivery® Dashboard on incoming eligible packages

2 Customer has an option to apply their USPS Electronic Signature Online

3 Displays customer has applied his USPS Electronic Signature Online

4 Customer has delivery options (Front Door, Porch, etc)

5 Package delivered to the address provided within Informed Delivery® Service

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QR CODE OVERVIEW

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QR Code Projects Purpose Release Date

Directs customers to the Mobile Schedule Pickup website where they may schedule a next-day pickup

September 5, 2018(Rolling Change)

Schedule a Pickup – Direct customers to the mobile “Schedule a Pickup” application where they can specify a date and time for a USPS Carrier to pickup their Return shipment

Find a Post Office – displays ten closest Post Offices nearby with distance and the hours of operations

April 24, 2019

May 3, 2019

Provides customers with Post Office location, distance, and hours of operation to drop off items

May 24, 2019(Rolling Change)

QR CODE ON RETURN LABELS

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DIRECTS CUSTOMERS TO USPS “SCHEDULE A PICKUP” APPLICATION THROUGH THEIR MOBILE DEVICE AND WILL PROVIDE ACCESS TO AN APPLICATION PROGRAM INTERFACE (API)

All USPS applications or systems will be updated to provide the ability to print return labels for the products listed below:

USPS RETURNS First-Class Package Return Service

Priority Mail Return Service

Ground Return Service

MERCHANDISE RETURN SERVICE First-Class Package Return Service

Priority Mail Return Service Ground Return Service

PARCEL RETURN SERVICE Return Delivery Unit (RDU) Return Sectional Center Facility (RSCF) Return Area Distribution Center (RADC) Full Network (NSA Only)AVAILABLE: May 2019

QR CODE ON RETURN LABELS

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Schedule a Pickup

QR CODE ON RETURN LABELS

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Find a Post Office

Return Label QR

Code

QR CODE ON EXPEDITED PACKAGING SUPPLIES

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The QR Code directs customers to the Mobile Schedule Pickup website where they may schedule pickup

Benefits: Easy and convenient Streamlines the process for Package Pickup requests Improve customer satisfaction

Directs to Mobile Schedule Pickup

Website

Scan the QR Code on the EPS Box

QR CODE ON COLLECTION BOXES

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Provides customers with Post Office location and hours of operation to drop off items.

PURPOSE

9am-5pm

1.2 miles

4018 Bernardo StreetSalem, IN 47167

HOURS

DISTANCE

ADDRESS

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Standard Collection Box

129,974LAB 53-B-QR

QR CODE ON COLLECTION BOXES

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Priority Mail Express Collection Box

1,467

COMPETITION

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Doubled 2018 capital spending to $6.6B Investment in cargo jets, automation, package-sorting

capacity, and 22 new/renovated facilities in 2018 plus 18more in 2019

$1.5B investment in Indianapolis and Memphis superhubs toincrease package processing throughput by 50% by 2023

Plan to offer year-round, 7 day ground delivery starting Jan.2020

Competitors are aggressively investing in growing capacity which will increase competitive intensity

Investing >$1.5B 2018-2019 in fulfillment centers, DSP solutions, and automated vehicles

Currently able to deliver 26% of own volume, 7 days a week

THANK YOU

Questions?