Ironically, the customer may perceive that the merchant charges excessive S&H fees, even if the merchant has the lowest such fees in the industry. This highlighted disparity between the postage fees and S&H charges gives the customer a perception of being overcharged. This sidetracks the customer experience: instead of the joy of receiving an eagerly anticipated package, the customers attention is drawn to the cost of the package. When a package bearing a stamp, a postage meter strip or a Post Office payment strip arrives at a customers doorstep, it plainly and boldly displays the postage amount paid by the shipper (see Figure 2 on page 51).

Unfortunately, customers usually confuse S&H fees with postage charges. For instance, a lightweight package shipped with USPS First Class Mail and electronic Delivery Confirmation costs the merchant $1.19 in postage however, in order to cover packaging, labor and overhead, the merchant may charge $7.99 for S&H. The difference between S&H fees and postage charges can also be very significant. The S&H fees typically cover a variety of expenses, including postage fees, packaging material, insurance, labor, overhead and, often, a profit margin. What do catalog merchants, Internet retailers, online auction sellers, many department stores and other sellers have in common? They all need to ship their products to customers, and most charge their customers S&H fees. This eliminates a serious customer satisfaction roadblock. Stealth Indicia allow merchants to ship products to customers without drawing attention to the difference between the shipping & handling (S&H) fees paid by the customer and the postage paid by the merchant. Stealth Indicia are an approved form of USPS postage evidencing that hides the postage amount paid by the shipper from the shipping label (see Figure 1 on page 50). USPS package services offer shippers significant savings and other advantages in certain mail classes, package weights and destinations. Postal Service shipping tools (such as electronic Delivery Confirmation) have proven to be a popular and cost-effective means to take advantage of USPS package services without the limitations and hassles of manifesting. Desktop shipping systems that combine Stealth Indicia with U.S.

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