The reseller program, which was part of a “Negotiated Service Agreement,” had expanded to the point where resellers were selling stamps and labels to suppliers that did not meet USPS volume requirements to qualify at lower prices, according to a report by the Capitol Forum, a 2017 investigative agency. A separate report from the USPS Inspector General this year estimated the annual loss for USPS due to the alleged misuse of the programs at more than $1 billion. Industry sources have confirmed that several other organizations have received similar notifications with USPS service agreements. The marriage ended on February 2, after the Stamps.com, based in El Segundo, California, said it had terminated its “exclusive agreement” with USPS, which covered two of its units, the Stamps.com company and Endicia, a labelling company. In an analyst interview that day, Stamps.com CEO Kenneth T. McBride said the decision was made after USPS refused to give up the exclusive nature of the relationship and allow Stamps.com to include other parcel delivery drivers. Stamps.com said his claims were non-negotiable, so he terminated the agreement as soon as the USPS did not give in. USPS declined to comment on this article. A spokesman for the Stamps.com did not respond to a request for advice.

The U.S. Postal Service® offers a variety of shipping and shipping options for consumers. Through a number of agreements on authorized postal operators® customers can buy stamps, send a letter or send a parcel without ever visiting a traditional post office™. Retailers can attract additional customers by offering postal products and services. Together, we offer comfortable postal services where customers live, work and buy. About six years ago, a “reseller” program was put in place to push sales to the USPS. Many customers have benefited from relatively small discounts. But Stamps.com, which has become a major retailer, has reaped the rewards of a range between its reduced postage price and the selling price for users, depending on people who are familiar with the deal. The spread, which varied according to the traffic strip but could reach double digits, became known in commerce as “Postal Arbitrage”. But things are looking up. On Wednesday, Stamps said the USPS had new agreements for mail sellers that end the uncertainty.