Thu. Jun 13th, 2024

What the End of USPS’ Reseller Program Means

September 30, 2022
2020 05 14T180203Z 1 LYNXMPEG4D1WQ RTROPTP 3 USA POSTOFFICEFILE PHOTO: A United States Postal Service (USPS) truck is seen in the rain in Manhattan during the outbreak of the coronavirus disease (COVID-19) in New York City, New York, U.S., April 13, 2020. REUTERS/Andrew Kelly

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The U.S. Postal Service’s (USPS) reseller program, which has been around since 1992 to offer discounted shipping rates, is about to be shut down and will impact e-commerce sellers at the end of this month. For the uninitiated, USPS resellers act as outsourced sales representatives for the Postal Service that work with some tech providers that recruit small-and-medium-sized shippers (SMBs), passing on commercial rates that are lower than the retail rates.

Therefore, some e-commerce players, knowingly or unknowingly, have relied on USPS resellers for USPS commercial shipping rates. Some merchants may have been taken aback by the recently announced elimination of the program set to take effect on Oct. 1 — right as peak/holiday shopping season kicks off. This comes amid a period of general uncertainty for supply chains and the overall economy.

My company helps tens of thousands of e-commerce merchants send millions of packages per year across the country and the globe. For the last three months, we’ve held extended calls with the USPS to provide a transition for affected platform partners and continue to provide the industry’s best commercial shipping rates for the direct merchants we serve.

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