On Tuesday, FP received notice that the Postal Regulatory Commission (PRC) issued a partial approval regarding the Market Dominant Price Case. The USPS® has been approved to proceed with the implementation of the January 22, 2017 price changes as proposed in October 2016. First-Class Mail products, Standard Mail products, Periodical products and Package Service products will be affected.
FP Meter Users Will See a Price Decrease The proposed cost decrease of Metered First Class single piece mail is from $0.465 to $0.46 per envelope. This is the second year in a row that metered First Class single piece mail prices have seen a decrease. These lower costs can help small businesses significantly.
The Extra Service products like Certificate of Mailing, Collect on Delivery, Return Receipt, Registered Mail and Signature Confirmation are still under review and have not been officially approved.
Below is a brief recap of the changes being implemented:
Other Important Changes – Standard Mail (commonly referred to as “direct mail”) will be rebranded as USPS Marketing Mail so as to better align the product name with business owners’ use of the mail class.
– Library Mail will see an overall price increase of 1.135%.
For More Information Regarding the January 22, 2017 Rate Change For the most up-to-date information on the rate change, please visit FP's Rate Change Page.
Effective January 17, 2016, USPS shipping rates increased an average of 9.5%. The January increase does not impact letters, First-Class flats and cards.
Even though shipping rates are rising, the USPS remains a cheap, reliable option for many package mailing scenarios.
Choice Office Equipment & FP Mailing Solutions Customers FP customers may need to take action to update their equipment and/or software to the new rates. For instructions, go to the FP Rates Update Center. Read on to see what’s changing and how you can cut more mail costs.
Rate Increase Highlights
The average shippingprice rises 9.5% from $5.02 to $5.50.
Priority Mail rises an average of 9.8%.
Priority Mail Express rises an average of 15.6%.
The USPS discontinues Priority Mail Express Flat Rate boxes.
First-Class Package Service rises an average of 12.8%. But there is good news after January 17: The maximum weight for First-Class Package increases from 12.99 oz to 15.99 oz. Also, the rate for First-Class Packages under 8 oz. is a flat $2.60, which simplifies lightweight package pricing.
Standard Post is now called Retail Ground, with an average increase of 10%.
The USPS Click ‘n Ship online label printing service will no longer use Commercial Base Pricing discount.
Eliminated Services The USPS eliminated the following products for the January 2016 rate change:
Commercial Base Pricing (CBP) on USPS Click ‘n Ship (Print & Ship) Online Service Until January 17, 2016, anyone with internet access could log into usps.com and buy a 4”x6” label at the Commercial Base Pricing discount. After this rate change, the USPS online service charges higher retail rates. To get CBP discounted rates, you need a postage meter or online postage service.
First-Class Package—Commercial Plus Pricing Commercial Plus Pricing (bulk package price discount) for First-Class Package Service (FCPS) is going away, leaving mailers with Commercial Base Pricing (single-piece price discount) for FCPS.
Regional Rate Box C for Priority Mail and Priority Mail International This large box (up to 25 lbs) had flat rate pricing, depending on origin & destination (zones). Regional Rate Boxes A (15 lbs) and B (20 lbs) remain.
Flat Rate Box for Priority Mail Express and Priority Mail International Express After January 17, 2016, mailers will price Priority Mail Express by weight & zone.
Critical Mail Critical Mail was a service for high-volume mailers that offered tracking and more security for important documents. Commercial Plus Flat Rate Envelopes and Signature Confirmation services replace Critical Mail.
Adapting to the New Rates Here’s what you can do to adjust your business shipping practices to the new rates:
Consider flat rate envelopes and boxes. With the new price structures, flat rate will more often cost less than your own packaging.
Consider USPS more often for packages under five pounds.
Run some calculations at the USPS Postage Calculator for your typical shipping practices. You may find less expensive alternatives that will save your business a lot of money.
Get on the Commercial Base Pricing (CBP) bandwagon. As of January 17, CBP is no longer on the USPS Print ‘n Ship website. Plus, all USPS package shipments must be IMPB (Intelligent Mail Package Barcode) compliant. To get IMPB barcodes, you could go to the local post office and pay higher retail rates. Why not use a postage meter or online postage service to get Commercial Base Pricing?
For lightweight packages, consider shifting to First-Class Package Service. It’s a flat $2.60 for packages under 9 ounces.
First Class Package Service Rates Typically 1-3 Days Delivery, includes tracking Prices are for lightweight single-piece (up to 15.99 oz) commercial rates, which requires a postage meter or online postage service. Don’t confuse this with First Class Retail Parcels, which is intended for residential or one-off shipping of lightweight (up to 13 oz) through the local post office. First Class Retail Parcel service is part of the Dominant (non-competitive) mail classes and is not part of the January 17 rate change.
Priority Mail Rates 1-3 Days Delivery, includes tracking
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