Accelerated Reply Mail - ARM
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Definition of 'Accelerated Reply Mail - ARM'
An expedited delivery of business reply mail offered by the U.S. Postal Service. Reply mail may be routed to a postal facility other than the one to which the mail is addressed, and is available for pickup by the ARM customer, or reshipped by express mail to the customer. The ARM service is generally used to receive orders and payments faster, thus reducing order-processing times and enabling more efficient cash management.
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Investopedia explains 'Accelerated Reply Mail - ARM'
Since there are costs involved in using the ARM service, it only becomes economical above certain thresholds for reply mail volumes. While the ARM service may not offer an attractive payoff for small businesses, it may be a necessary cost of doing business for larger companies. For such companies, faster receipt of receivables improves cash flow, thereby providing a return on investment that may be an order of magnitude higher than the cost of the service.
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