USPS INDUSTRY ALERT: Marketing Mail and First-Class Mail Growth Incentives

August 15, 2023

The Postal Service has filed with the Postal Regulatory Commission two year-long growth incentives which will encourage mail owners to increase qualifying First-Class Mail and Marketing Mail volumes in Calendar Year 2024 (CY 2024). Each Mail Growth Incentive will offer postage credits equivalent to 30% of the amount by which qualifying CY 2024 volumes exceed the greater of (a) corresponding FY 2023 volumes, and (b) one million pieces in CY 2024. Mail owners with fewer than one million pieces in FY 2023 but exceeding one million pieces in CY 2024 will have their incremental volume start at one million pieces, not their FY 2023 volume.

The First-Class Mail and Marketing Mail Growth Incentives will run throughout CY 2024 and will provide mail owners with the opportunity to receive credits for growth in qualifying mail volumes beyond baseline volumes. The Marketing Mail Growth Incentive will be offered for Marketing Mail letters, flats, and parcels. The First-Class Mail Growth Incentive will be offered for commercial First-Class Mail letters and flats (i.e., excluding First-Class Mail Parcels and single-piece First-Class Mail).

Among the requirements to be eligible to claim the postage credits in each of these incentives, a mail owner must (A) register for the incentive via steps to be announced, (B) mail at least one million qualifying pieces in CY 2024, and (C) mail more qualifying pieces in CY 2024 than they mailed in FY 2023. Mail owners can participate in either or both Mail Growth Incentives, but the incentives cannot be combined for the purposes of reaching the million-piece minimums or for any other purpose.

USPS intends to begin registration in November 2023 if approved. Registration for each Mail Growth Incentive is expected to occur through a registration portal, which will be made available through the Business Customer Gateway (BCG). As part of registration, USPS will establish a mail owner baseline volume from FY 2023. The mailer must record their agreement with this baseline volume and other conditions for participating in the incentive plan in order to receive postage credits. Postage credits will be issued to qualified mail owners after six months, nine months, and twelve months from the start of CY 2024 and will be able to be used on future mailings until December 31, 2025.

Information on the requirements to participate in the First-Class Mail and Marketing Mail Growth Incentives will be posted on PostalPro.

Source: https://about.usps.com/newsroom/national-releases/2023/0811-usps-files-with-prc-to-establish-mail-growth-incentives.htm