USPS changes coming in 2012

The U.S. Postal Service is making a variety of pricing and classification changes that will go into effect January 22, 2012, including a price increase for all parcels, revised addressing requirements for Non Flat-Machinable parcels and the inclusion of Delivery Confirmation in the price of a variety of products.

As a collaborator with the USPS, Newgistics is committed to keeping you up to date on regulation changes that will affect products you ship. A partial list of upcoming changes is below. Please look closely at the individual weights, zones, and physical material you mail. The averages can be substantially different than the actual impact in particular classes and weight breaks.

For detailed tables go to USPS.gov or contact your Newgistics consultant for counsel and guidance during this transition.

Standard Mail Parcels
• Standard Mail parcels and Not Flat-Machinable parcels are currently grouped in a single product classification known as Standard Mail.

• The USPS is moving Standard Mail parcels (both machinable and irregular) to the competitive product category and renaming the product Parcel Select Lightweight, which will be priced by ounce. Delivery Confirmation will be included in the price for this reclassified product.

Not Flat-Machinable Parcels
• Not Flat-Machinable parcels will remain in the market dominant product category in the Standard Mail classification, but will be renamed Marketing Parcels.

• Marketing Parcels will require an alternate addressing format such as “or Current Resident” in the addressee line. These parcels will continue to be priced with per-piece and per-pound rates. Parcels without the “or Current Resident” addition to the address must be treated as Parcel Select Lightweight parcels. The maximum size for Marketing Parcels will be 12” x 9” x 2”. (Currently, the maximum size for Not Flat-Machinable parcels is 15.75” x 12” x 1.25”.)

• Ancillary service endorsements such as “Return Service Requested” cannot be used with Standard Mail Marketing Parcels.

• Nonprofit Standard Mail parcels (both machinable and non-machinable) will remain in the Standard Mail classification.

Machinable Parcels
• Dimension requirements for machinable parcels are also changing with the reclassification. Machinable parcels will now be defined as 27” x 17” x 17”. (The current dimensions are 34” x 17” x 17”.) This change will impact all parcels.

Label and Address Rule Changes
• The products whose names are changing must have new labels printed showing the correct product name: Parcel Select Lightweight and Standard Mail Marketing Parcels

• Standard Mail Marketing Parcels must include “or Current Resident” on the addressee line. Example: John Doe or Current Resident / 123 Main St. / Austin, TX 78746

Delivery Confirmation
• For your information, Delivery Confirmation will now be included in the price for First-Class Package Service, Priority Mail, Parcel Select, Parcel Select Lightweight and all Merchandise Return Service products.

Newgistics’ Kevin Brown to be Featured Speaker at Kewill Accelerate 2012

Newgistics’ Director of Product Marketing, Kevin Brown, will be a guest speaker at Kewill’s annual customer symposium, Accelerate, April 10-12, 2012 in Nashville. Kevin will speak on the Impact of Shipping & Technology on the Customer Buying Experience.

Abstract:

Direct sales channels continue to converge, creating an integrated shopping environment that offers consumers seemingly unlimited choices. At the same time, consumer attitudes are changing, as shoppers increasingly seek to maximize their budgets. In this dynamic atmosphere, one fact remains unchanged: orders must be delivered and parcel returns managed. But is it as simple as moving boxes from one point to another? Kevin Brown of Newgistics will answer that question as he presents the results of his company’s annual consumer shipping survey conducted by Harris Interactive. In this session, Kevin will share findings on how shipping and technology impact the customer buying experience, as well as recommendations for improving that experience.

Kevin Brown develops, implements and manages the product marketing strategies for Newgistics. He is accountable for the overall go-to-market strategy, market evaluation, competitive assessment and development of the product message and platform. Kevin has deep experience in the technology and supply chain industries with a strong background in developing and positioning value-based supply chain execution strategies, particularly within the areas of direct-to-consumer retail and fulfillment.

Visit Kewill Accelerate 2012 website for more details on the conference, including how you can take advantage of the early bird registration rate (until December 15) and special room rates at the host hotel, and ideas on what to do during your stay in Nashville.

A Look at Shipping Trends for the 2011 Holiday Season

With the economy still in a state of uncertainty, consumers are grasping at any possible way to save money. Especially with the holidays approaching, consumers are likely to make purchases and buy gifts from brands that understand the need to save while maintaining quality of merchandise and service.

What does that mean for merchants? For one, it means they must be flexible to meet these consumer demands during the most critical season of the year by providing a variety of options and promotions for shipping. In a 2010 survey of online retailers from Stamps.com, 64 percent of respondents stated that “some type of free shipping promotion” (with or without minimum spend) is the most effective promotion they can offer to drive sales during the holidays, with “discounted shipping” a distant second at 26 percent.

When executed well, shipping promotions consistently translate into increased sales: A comScore survey of fourth-quarter spending in 2010 revealed that the average order value on free-shipping purchases was $110, compared with $95 for non-free-shipping purchases. Of course, there is no such thing as “free” since the merchant must absorb these costs – but even aside from a significant jump in sales, the question on many merchants’ minds is whether they can afford not to offer shipping promotions. In another comScore report, 75 percent of consumers surveyed said they would shift to another retailer at checkout if shipping was not free.

So without a doubt, consumers love free shipping – but what other shipping promotions can attract business and help maintain long-term loyalty? Merchants will rely on a variety of strategies this holiday season, such as monthly shipping clubs, conditional free or discounted shipping (such as limited time, minimum purchase, or eligible products), and optional upgrades to increase visibility and control over the delivery or ensure ease of returns. Upgrades can seem counterintuitive when consumers are looking to save, so they may not be the best strategy;  nevertheless, some carriers will try to sell merchants and consumers on these services for the peak season.

At no extra cost, Newgistics’ Transit Triggers service provides optimum visibility into parcel movements that can trigger actions to help merchants improve customer service and streamline operations. Included with all Newgistics services, Transit Triggers begins with a dynamic barcode on delivery and Newgistics SmartLabel^® return shipping labels, embedded with extraordinarily rich tracking data and order-specific details. Then once an order ships, parcel scan events can trigger customer specific notifications even sooner than other carriers, since we provide visibility on outbound parcels as soon as they enter the Newgistics network. This helps reduce inbound call-center volume and improve customer service, and also provides an opportunity to include targeted marketing messages in customer communications. Additionally, as the market leader in returns, Newgistics has a reputation for offering a seamless returns service that’s just as easy for the merchant as it is for the consumer. Also with the Transit Triggers notifications, customers can receive alerts acknowledging that their returns process has been initiated, easing the universal worry that the return will get lost and their account won’t be credited. By offering shipping benefits like these and making consumers’ shipping expectations clear up front with a well-defined shipping policy, loyal customers will take note – especially if the merchant is also offering them a special deal on shipping during the cash-strapped holidays.

Because the holiday season is the most critical time of year for most merchants, any mishaps or misunderstandings during this period have the potential to be that much more damaging to your brand. We all remember the time that we ordered that perfect gift for Mom or a close friend just in time for the holidays, only to discover at the last minute that the merchant was unprepared to handle the influx of deliveries and the gift wouldn’t make it on time. It is imperative for merchants to thoroughly examine service requirements around their carriers’ delivery capabilities during the holiday season to ensure that the customer’s expectations are met every time.

While free shipping will continue to be a strong driver in each shopper’s choice of merchants this holiday season, it’s important not to discount the impact of the carriers in this process – namely, their ability to meet consumer expectations consistently and at a reasonable cost to the merchant. Newgistics is currently engaged in an intensive consumer study with a globally renowned research firm to more precisely identify key considerations, and we look forward to sharing the results and   potential impact on value creation when the study is concluded. Stay tuned!

Preparing for Peak

Kids are back in school, Halloween candy is on the shelves, and the daytime temperature here at the Newgistics headquarters in Austin has finally dipped below 100 degrees for the first time in months. What does that all signify? To us, it means that merchants are swinging into full gear as they prepare for the peak holiday season.

In this post, we wanted to share some key pointers and best practices that can help organizations get their shipping procedures in top condition for the holiday rush:

• Obtain all carriers holiday cut-off shipping dates as soon as possible
• Factor in the time it takes to fulfill orders to ensure a positive ordering experience for your customers
• Make sure the client service team is fully aware of critical shipping cut-off days and dates
• Cross-train the operations team to handle delivery and returns, minimizing the possibility of downtime during the most critical season
• Consider outsourcing portions of fulfillment or drop ship from your vendors during peak/holiday season in order to help manage the increased load or unexpected events
• Carefully examine all shipping policies to ensure the whole team is well prepared for the increased activity

More on Preparing your Shipping Policy for Peak Season
One of the leading factors that determines the success or failure of the customer experience is the manner in which merchants set expectations with consumers about their deliveries. Too often, merchants fail to clearly identify all the shipping options available to their customers or do not plainly state how their order will be handled once it is submitted.

The holiday season is already a stressful time for consumers as they scramble to order all the right gifts in time for gatherings of family and friends – which means that any miscommunication or mishandling of their delivery will make them even more likely to get upset with the merchant and spread the word about the incident. A smooth holiday delivery begins with setting the right expectations up front in the shipping policy.

In order to do this, Newgistics advises our clients to:

• Create a dedicated section of your web site (under Customer Service or Support) just for the Shipping Policy
• Clearly outline the different shipping options that are available to the consumer, and their associated costs whenever possible, such as:
  • Standard Delivery (3– 7 Day)
  • Expedited Ground (2 – 5 Day)
  • Second Day Air
  • Next Day Air
  • If there is any delay in shipping due to order processing requirements on the part of the merchant, it is important to identify what the expected delay in shipping may be so that consumer expectations are properly set.
  • Use your order confirmation/”thank you” email (which should be sent to the customer immediately after they place an order) as another vehicle to reiterate your shipping policy.
  • Send proactive delivery status updates to customers via their method of choice (such as email or text message).  These communications are also an opportunity to add promotional message that encourage repeat business.
  • Take advantage of self-service web tracking tools or API tools that can be integrated into your website.

If you implement these practices, you are proactively safeguarding your brand against misunderstandings about your shipping processes during the most time-sensitive part of the year. Your customers will appreciate you being open and clear about your Shipping Policy, and your order management, fulfillment, and call center teams will be prepared to handle the influx of orders during peak season.

Newgistics Ranks Among Inc. Magazine’s Prestigious 2011 Inc.500|5000 List

We are proud to announce that Newgistics was listed in Inc. magazine’s fifth annual Inc. 500|5000, an exclusive ranking of the nation’s fastest-growing private companies. Newgistics ranked #2341 overall, #48 in the Logistics & Transportation industry, and #51 in Austin.

As Inc. states, “The list represents the most comprehensive look at the most important segment of the economy—America’s independent entrepreneurs.” Newgistics joins other high-growth brands on the list including LinkedIn, Pandora, Dunkin’ Donuts, and Boingo Wireless among others.

In a stagnant economic environment, median growth rate of 2011 Inc. 500|5000 companies remains an impressive 94 percent. The companies on this year’s list report having created 350,000 jobs in the past three years, and aggregate revenue among the honorees reached $366 billion, up 14 percent from last year.

The 2011 Inc. 500 is ranked according to percentage revenue growth when comparing 2007 to 2010. To qualify, companies must have been founded and generating revenue by March 31, 2007. Additionally, they had to be U.S.-based, privately held, for profit, and independent (not subsidiaries or divisions of other companies) as of December 31, 2010. The minimum revenue required for inclusion was $100,000 in 2007 and $2 million in 2010.

“Newgistics is honored to included in this prestigious ranking by Inc. magazine,” said Bill Razzouk, Chairman and CEO of Newgistics. “Our continued growth and success is a testament to Newgistics’ guiding principles of best-in-class customer care and value-driving shipping services.”

Complete results of the Inc. 500|5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at www.inc.com/5000. Additionally, the Inc. 500|5000 Conference & Awards Ceremony will celebrate this year’s honorees and the list’s alumni, September 22-24, 2011 at the Gaylord National Resort and Convention Center in National Harbor, Maryland. For more information about the 2011 Inc. 500|5000 Conference & Awards Ceremony and to register, visit www.inc500conference.com.

Kewill Flagship™ Now Supports Newgistics SmartLabel® Returns

Introducing Flexship™ for Label Printing

The Internet Retailer show is well underway, and we kicked it off with an exciting announcement about our new Flexship™ label printing application for small to midsize shippers. As with most of our new offerings, the idea for Flexship came from our customer needs and requests. We were finding that the complex, expensive label-printing systems used by larger enterprises are just not practical for smaller businesses – so Flexship was born.

Implementing Flexship is free and fast for new and existing Newgistics customers, and the system is installed locally at the shipper’s location, utilizing industry-standard hardware. For small and medium shippers who currently use a web-based tool to print labels one at a time, Flexship provides a significant opportunity to increase speed and efficiency by producing batches of labels in a local environment. Additionally, the application allows our customers to print labels with barcodes that combine order and tracking data, helping them improve the customer experience and increase productivity across departments.

Flexship supports the USPS Electronic Verification System (eVS), an e-manifesting service that eliminates manual processes and streamlines the processing of small parcel deliveries and returns. It connects to our OneShip℠ operating platform, sending manifesting information our national network of SmartCenter facilities. The result? Shippers using Flexship no longer need to invest in a manifesting system or pay to operate and maintain it.

Additional features of Flexship include:

-Ability to print the delivery and return labels for an order at the same time
-Full certification for USPS Intelligent Mail Package Barcode (IMpb)
-Technical support provided by Newgistics
-Rapid implementation to begin realizing savings immediately

To learn more about Flexship, check out the announcement or get in touch with us anytime. If you’re at the IRCE show in San Diego this week, don’t forget to stop by and see Newgistics in booth #812!

Going to IRCE Next Week? Come See Newgistics! (Booth #812)

Here at Newgistics, we’re in the final throes of preparation for Internet Retailer’s 2011 Conference & Exhibition that takes place next week (June 14-17) in San Diego. As one of the most-anticipated events of the year for e-retailers and direct marketers, IRCE is a great opportunity for us to spend time with some of our customers and update the industry on the latest with Newgistics’ service offerings.

This year’s event is a special one for Newgistics for three reasons:

1) We’re  sponsoring a networking Block Party. After the Exhibit Hall reception on Wednesday evening (June 15, 7-10 pm), all conference attendees are invited to a free Networking Block Party* in the historic Gaslamp Quarter. The IRCE Block Party will feature great food from local area restaurants, along with beer, wine and live music. Newgistics is the premier sponsor of the event, and we hope to see you all there.

2) We’re unveiling an exciting new label-printing solution (more details on that next week.)

3) We get to talk to our friends in the industry about why shipping has a new home with Newgistics. If you missed our last post on that, be sure to check it out.

*The Block Party will be free for full conference attendees; tickets available on-site for others.

Shipping Has a New Home

We have been going through some exciting and positive changes at Newgistics lately, one of which has been reevaluating and repositioning the message that we put out into the market about who we are. Why? Well, as anyone who has ever run or been heavily invested in a company knows, summing up what your business does clearly and succinctly can be one of the hardest things to do. You want everyone to know how great your product or service is and the 18 different ingredients to the secret sauce that makes you unique. But if you overcomplicate your message with different facets and details, you often lose the forest for the trees and end up confusing both the public and your potential buyers.

In the best cases, it only takes a few words to perfectly sum up what a brand stands for and what they do. (“Just do it” or “Can you hear me now?” ring a bell?) And with that idea, the Newgistics marketing team worked hard to come up with a new tagline that would successfully get across to you what we believe about our business:

Newgistics: Shipping has a new home.

Why “Shipping has a new home”? Well, at the most basic level, we are a shipping company, so we wanted to make that crystal clear. Sure, we have great technology services among other things, but it’s all there to serve the shipping process. Also, while many people may have first come to know Newgistics as a returns company over a decade ago, our customers rely on us day in and day out for both deliveries and returns. So for those who still saw us as “the returns company,” our new tagline is helping us set the record straight.

We believe that shipping is about much more than moving boxes, and that as your carrier, we can actually help you maximize the long-term value of your customers and increase efficiency across your organization. Shipping touches every area of the business, from finance and operations to marketing and customer satisfaction, and every shipment creates new opportunities to engage your customers and improve your business. That’s why we encourage our customers to be cautious in working with carriers that are just trying to keep their focus on the low price on the contract. As your Mom always told you, “you get what you pay for,” and sometimes that low price comes at the sacrifice of quality customer service – which will end up costing you a lot more in the long run.

We hope that our new message will stick with you, and we would love to hear what you think.

Highlights from the National Postal Forum

Another National Postal Forum is now behind us, and as always, it was a great opportunity to see familiar faces and share ideas about the future of the shipping industry. For Newgistics, some of the key highlights of the event included:

–Postmaster General, Pat Donahoe, reiterated his direction and focus on 4 key business strategies for the Postal Service.

___1) Strengthening the business-to-consumer channel
___2) Improving the customer experience
___3) Competing for package business
___4) Striving to become a leaner, faster and smarter organization

–Ellis Burgoyne, Postal’s CIO and Executive VP, said that the USPS would continue to make improvements to Full Service Address Correction Service; increasing tracking for mail-pieces, trays and containers; and full tracking of all barcoded packages by October.

–Jim Cochrane, the VP of Product Information for USPS, announced that the the organization will purchase 300,000 new scanners as part of its program to make its parcel tracking “world class.” His goal is to have an Intelligent Mail package barcode on every package ASAP, and the Service will provide “free” tracking and tracing. Jim also reviewed the roll-out timeframe for the IMpb:

___–The USPS has just issued the rules and requirements for the IMpb program to be effective in stages over the next 2 years for all commercial parcels.
___–Delivery Confirmation will be provided at no additional charge for all commercial packages starting in January 2012. With the exception of Standard Mail, this will apply to all commercial packages including Priority Mail, First Class, BPM, Media Mail and Parcel Select, which already includes the Delivery Confirmation service as part of the price. (Postal must obtain PRC approval)
___–The Mandatory date for the full implementation of the IMpb is June 3, 2013.

Thanks to everyone who led these informative sessions and those of you who stopped by our booth at NPF. Next, the Newgistics team is getting geared up for the big upcoming Internet Retailer expo next month. Hope to see you all there!