USPS Vehicles

Your Guide to the Upcoming Price Changes from USPS

On Sunday, January 17th, 2016, the USPS will introduce new pricing for most of its mail services, the first increase of this kind in three years. While UPS, FedEx, and other private carriers have been increasing pricing annually through General Rate Increases, the Post Office has kept pricing flat year-over-year. That’s about to change.

The good news? With the USPS rate increase, the cost for Grandma to mail your birthday card is still only $0.49. And, the cost to ship a light weight parcel at your local Post Office will also remain unchanged. But the cost for a number of other services are changing significantly.

But who still goes to the Post Office? If you’re an eBay seller or running a small business on Amazon, Shopify, or countless of other marketplaces, you likely use Shyp or generate postage online through a 3rd party platform such as Endicia, ShippingEasy, Shippo. You may even generate through eBay directly, where you obtain a level of discount postage.  

These discounted rates – often referred to as Commercial Base or Commercial Plus – are seeing a significant increase in cost, ranging from a 9.4 percent increase, to 21.6 percent, depending on your shipping preference. Retail rates for Priority Mail are increasing by about 4% within zones 1 through 8, 20% for zone 9, and 4-14% for flat rate packages. Commercial Base Pricing (a discount level often available to users of label platforms) is seeing a 2.4% average increase in zones 1-8, 25% for zone 9, and 3-16% for flat rate shipments. These figures can all be found in USPS issued pricing notices.

The resulting implication: discounts that were once extremely favorable through these online platforms are becoming less impactful relative to Retail rates. But, there’s more to fulfillment than just postage cost.

At Shyp, we solve these pain points by leveraging a multi carrier platform where we consider rates from the Postal Service, FedEx, UPS, and other carriers. While the Post Office continues to be the low cost leader for shipments under a pound, leveraging our network enables you to take advantage of different carriers and services only available to higher volume shippers. With these Postal rate increases heavier shipments may be more cost competitive in the FedEx Home Delivery network than with USPS Priority Mail. We can help ensure you continue shipping your orders profitably.

The concern for consumers and small businesses is shifting to other areas of the shipping process where costs are elusive, but often exceed the cost of postage. Factors such as packaging and materials, parcel insurance, your time (or that of a colleague), as well as carrier optimization (USPS is often not the best shipping option!), and speed to ship, are integral considerations for your small business and ultimately, your customers.

As a marketplace seller for a platform like eBay, you no longer need to fret about what to do after selling those 40 pound speakers, or an old flat screen television. Our couriers and packing experts at our warehouse are specifically trained to handle items of all sizes and fragility, and with our on-demand experience, 7 days a week, 8am-8pm local time, we are at your service for hours extended beyond your local Post Office or UPS store.

Matthew Hertz

By the way, I’m Matt, Director of Operations at Shyp. Over nearly a decade of experience in logistics has turned me into a bit of a shipping expert (or nerd, if you will). Over the coming weeks and months, I’ll be providing insight and expertise on the shipping and logistics industries, covering “today’s” topics and issues such as Amazon and the future of B2C shipping; Oil’s impact on Parcel carriers; and the exciting companies and products to watch.

As your go-to source for parcel shipping for high frequency shippers, it’s Shyp’s goal to make sure you’re educated on what matters to you and your business.

View Matt’s original post on LinkedIn here.