USPS Hikes Could Have "Huge, Negative" Impact on Overseas Book Sales

January 24, 2007

On December 20, the United States Postal Service (USPS) proposed changes to its International Mail products that could have a serious effect on overseas book sales. The USPS wants to discontinue its traditional international Surface Mail and replace it with International Surface Air Lift (ISAL) and ISAL "M-bags" that would have much higher rates. The USPS is accepting comments on its proposed changes until February 2, 2007.

"This will have a huge and negative impact ... on export sales by U.S. publishers, distributors, and booksellers," said Phil Bevis of Arundel Books, which includes retail stores in Seattle and Los Angeles, an online store, and two warehouses in Washington State. He believes that the new rates would "in essence" triple shipping costs on over 50 percent of international orders.

The Postal Service proposal combines three "overlapping" services: ISAL; Publishers' Periodicals; and Books and Sheet Music. The USPS is proposing an average price increase of 13.1 percent for ISAL. Each mailing under this service would have a 50-pound minimum. In addition, M-bags (direct sacks of printed matter sent to one addressee) can be sent using ISAL surface. The USPS is proposing an average price increase of 2.8 percent for this service.

The bottom line, said Bevis, is that packages that used to be shipped overseas by boat will now ship via air, and this will drastically increase shipping costs for all international orders. In an effort to prevent this, Arundel Books is spearheading a campaign to contest the proposed changes and is urging companies that ship overseas to join the effort.

Bevis told BTW that his efforts have already achieved some success. Initially, the USPS comment period was set to end on January 19, but he was able to get Post Office officials to extend the deadline. "You know the scoop in our business ... our busy period is December 10 to late January," he said. "The [proposed changes] did not [elicit] comments from anyone, and I asked the Post Office, Don't you think that's strange?"

Now, with the extended deadline, Bevis is hoping that retailers and other businesses with overseas customers will contact the USPS. He also is urging concerned booksellers to spread the word to their colleagues.

"We're one of the few sectors of the economy that runs an [international trade] surplus," Bevis said. "We help the trade deficit. It's one of the sweet spots in our business.... For many of us, online sales are helping keep us in business ... everything else is flat."

Based on current rate information provided by the USPS, Bevis pointed out that the cost to ship a two-pound order to Great Britain would increase from $7.50 to $11.00. Even more drastic, on a 30-pound shipment to Great Britain, for example, the shipping cost would increase from $28.50 to $60.

Bevis said that 30 percent of his online orders are international. "If you have to provide a quote of $28 for shipping when it used to be $8 ... customers will either not buy it or get it from vendors in another country," he said. "This is going to be costly. With my company, it could ... cost us 15 percent in terms of sales."

Booksellers who wish to join with Arundel in contesting the rate changes can do so going to www.arundelbookstores.com. Those who wish to contact the USPS directly can do so by fax to (202) 268-2316, or mail to Manager, Mailing Standards, US Postal Service, 475 L'Enfant Plaza, SW, Room 3436, Washington, DC 20260-3436.

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