Multi-Channel Retailers Scramble To Find Alternatives In Response To Proposed Postal Rate Increase Of Nearly 6%

By Del Williams, technical writer

New category of mini catalogs helps offset increased costs of mailing, without sacrificing circulation or frequency of promotion

Among multi-channel retailers that rely on mailing everything from full catalogs to postcards to prospect for and draw customers to stores or ecommerce sites, the U.S. Postal Service’s (USPS) proposed rate hike of 5.9 percent, the largest since 2007, has driven many to evaluate less expensive alternatives.  With the Postal Regulatory Commission (PRC) having up to 90 days to rule on the proposal, the price hike could go into effect as early as January 27, 2014, if approved.

In an open letter posted on its site, the American Catalog Mailers Association (ACMA) further warned that the PRC can apply the increase differentially to each class of mailer, which could include a surcharge on Standard Flats used to send full sized catalogs that could be as high as 10-12%. 

For many multi-channel retailers, simply paying the higher mailing rates is not an option.  Instead, early feedback suggests that many intend to reduce catalog circulation and send frequency, or turn to less expensive forms of mailing such as mini catalogs, or digital promotion methods including search, email, display and social media advertising.

Please log in or register below to read the full article.