Live from DIMA: Test of Pay-As-You-Go Postage Announced

Posted on by Chief Marketer Staff

Deutsche Post has teamed up with Pitney Bowes and Direct-Marketing Logistic on a pilot program to invoice direct mail postage online. If successful, the six-month-test could lead to savings for customers, the company said.

The effort is being pursued in line with the European Commission initiative called REMPI (Re-engineering the Mailer Post Interface).

Normally, mailers pay in advance for postage. Under the new procedure, they will be invoiced online as the mailing is being sent.

Instead of traditional postage, envelopes will carry two additional bar codes. Equipment and software is being supplied by Pitney Bowes. As they prepare mail, letter shops and mailers will transmit data, including the volume, postal codes and postage to Deutsche Post. In turn they will be notified immediately when the order has been fulfilled and invoiced for the amount.

In addition, the exact timing and volume of the mailing can be monitored by the mailer. Direct Marketing Logistic, Neu Isenburg, a unit of LufthansaAirPlus, is a direct mail service bureau. U.S.-based Pitney Bowes, which manufactures postage traditional postage meters, is now helping client companies conduct their billing online. According to the International Herald Tribune, it is about to roll out with ClickStamp, which will allow customers to buy postage over the Web.

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