Connor BrookeIt’s that time again. The U.S. Postal Service annual price change went into effect on May 31st, which means it’s time for online sellers to educate themselves about how their shipping might be impacted.
So, what are all the changes? To help explain, Endicia recently published a number of blog posts highlighting the USPS price change information businesses need to know. Here’s a snapshot –
- Parcel Select rates have increased. Rates for Parcel Select have increased by an average of 10.2 percent, or $5 more per package. Though note: there is less of an impact if the packages being shipped are lightweight. If your shipment weighs on average 5 lbs. or less, the price increase is only about $0.70 per package.
- First-Class Mail Parcel (Retail) is changing its name. Though the name change is still pending approval, First-Class Mail Parcel (Retail) will now be known as First-Class Package Service. It has also increased by an average of 9.8 percent or $0.30 per package. That increase applies to those who pay for postage at the Post Office. So, if you use a PC postage provider (aka shipping software) the average increase is 5.1 percent or $0.13 per package instead.
- Free Tracking for All. With the latest price change, package tracking is now free for all domestic mail classes except Standard Mail.
- Signature Confirmation Rates. The USPS now requires a signature at delivery for all shipments that have an insured value of over $500 – an increase from the previous threshold of $200 or more. Also, Signature Confirmation is included at no additional fee.
- Canada Has Switched to Zone-based Pricing. One of the biggest changes this year is that USPS Priority Mail International shipping to Canada has switched to zone-based pricing (7 zones instead of one blended overall rate for the entire country). This will help keep rates low for heavier-weight packages since it is based on the U.S. origin and destination in Canada. So which zones are seeing savings? If you’re shipping from a major U.S. city, like San Francisco or Chicago, to anywhere in Canada you most likely fall under Zone 1.1 and Zone 1.2, and can expect to save around $8 per package. You’ll also see greater savings if you ship packages weighing under 1 lb. or more than 13 lbs. However, if you’re shipping from a less major city, such as Wichita, Kansas (Zone 1.4), you will see an increase of around $6 per package. To see how shipping rates have changed for each zone, check out our 2015 USPS price change shipping rates for Canada blog post and the graphic at the end of this article.
- Domestic Priority Mail and Priority Mail Express. There’s good news for shippers – domestic Priority Mail and Priority Mail Express rates have stayed the same. That means you can take advantage of the same low prices implemented for Priority Mail back in September 2014. USPS also continues to be a great alternative to FedEx and UPS Ground for lighter weight packages.
This article was written for Business 2 Community by Connor Brooke.
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Nice infographic!
–USPS