The USPS® Perfect Storm – Why Mail Volumes Are Going Down So Fast

First Class Mail has been experiencing the “Perfect Storm” and volumes have been declining at an alarming rate (15% in the past 2 years!). This is due to three primary factors:

  •  Peoples comfort levels receiving information online vs. in print form. This is going to accelerate as people have less desire to hold and manage paper. Smart phone and tablet adoption will make it easier for people to manage communications and preference for digital over paper will increase
  • The economy has been in a slump since 2006 without significant signs for growth. This means that companies are constantly looking for ways to reduce costs and online replacement of physical mail documents is a great savings opportunity.
  • There is a higher concern and visibility about the environment.  People view a reduction in paper, transportation and energy as a way to make a positive impact.
  • Snowball effect of bad news will make people reevaluate their mail options. This will lead to further reductions.

There are roughly 1.3m mailing systems in the US procured from three main providers. The vast majority of these meters are used to process First Class Mail. This includes transaction documents (Invoices, Statements and Checks), customer communications and advertising. As mail volumes decline customers will be able to get by with smaller meters, internet postage or eliminating the need entirely with stamps.

Postal Advocate has the expertise and technology to help companies manage their mailing equipment and look for best practices to optimize operations and reduce spend.

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