Today a new round of USPS rates go into effect, and while some rates are increasing, e-tailers can also take advantage of discounts if they use online postal management services such as Endicia, a company specializing in e-business shipping that does a stellar job of both educating clients on such issues as well as providing ways to cut shipping costs.
The new rates affect retail pricing, or the standard counter price for postage, and commercial pricing, or the discounted price available to online postage users, such as those using Endicia, which in some cases come with certain requirements.
For Mail Class, the following price changes are now in place: Standard mail, 3.5-percent increase; Media Mail, 4 percent; First-Class Mail Letters, 2 percent; First Class Flat, 3 percent; and First Class Parcel, 3.5 to 4 percent.
In the Shipping Class, Priority Mail goes up 5 percent, and the commercial change is 3.3 percent, while Express Mail is up 1.5 percent, but the commercial change is a 1.6 percent decrease, according to Endicia.
No Fuel Surcharge for USPS While this may discouraging, Mike Colgate, of Endicia, said that one benefit of the USPS service is that there are no extra charges. "There are about 90 different surcharges you can get from private carriers, the top four being for fuel, rural addresses, incorrect addressing and residential status," he said. "Private carriers can cost up to three times as much as the USPS with these added to the bill."
First Class Mail International is now on a shape-based pricing format, with three segments: letter, flat and parcel. While some costs go up, Colgate said some will decrease. "This change puts pricing more in line with domestic first class," he said, noting that, for instance, a 3-ounce letter to Canada now costs 11 cents less than before today's rate changes.
He also said there is now a Large Priority Flat Rate Box, sized at 12 x12 x 5.5.
In regard to changes in Priority Mail, using online postage services can reap an average savings of 3.5 percent on all parcels shipped with the new delivery confirmation barcode labels. He used the following example: a 3-pound Priority Mail Package would cost $11.50, plus 65 cents under 2008 retail rates, for a total of $12.15, while Endicia can provide the service for $11.10, a savings of $1.05. For Priority Mail International, the savings is about 99 cents.
To show how much e-tailers can save over time, Colgate cited the following figures for a 3-pound Priority Mail package: if you shipped five per day, you could save $585 a year using online postal services instead of paying counter prices.
Express Mail: In the Zone Meanwhile, on the Express Mail front, this class moves to zone-based pricing. "The farther a package travels, in general, the more you pay," said Colgate. "This used to be just for Priority, but now it's for Express too." The good news, he said, is that it costs less in some cases. For example, the 1-pound rate used to cost $19.50 no matter where it was shipped, but now if it's going to a local zone, that package will cost $14.55.
Additionally, e-tailers can get a 3-percent discount if they use certified online Express Mail barcode labels for this class of shipping. In the case of, say, a 3-pound Express Mail package going to Zone 8, you'd pay $28.52, instead of $29.40, a savings of 88 cents.
Ship A Lot, Save A Lot There are also commercial volume discounts available for Express Mail, that go into effect July 1, which can mean savings of up to 10 percent. Over time, this can add up, said Colgate, citing the following figures: an Express Mail 3-pound package would cost on average $24.73, but the commercial price average is $23.99, so the savings per package is 74 cents. If you shipped five packages per day, you'd save $370 a quarter of $1,605 a year. Ten packages a day at this rate would save you $4,817 annually.
To summarize, using online postage services can save you an average of 3.5 percent on costs for Priority Mail, 3 percent for Express Mail, for volume incentive Express Mail, you'd save up to 10 percent, Priority Mail International is 5 percent and Express Mail International is an average savings of 8 percent. Additionally, Bound Printed Matter through PC postage services is no longer available; shippers must now obtain a permit from the USPS to use this class of service.
And, finally, a friendly reminder: to mail a standard letter, the cost goes up 1 cent, to 42 cents. For more information, visit the USPS price page.
Michelle Megna is managing editor of ECommerce-Guide.com.
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