USPS Rate Changes 2014
On September 7, 2014 USPS will be changing their shipping rates for Priority Mail packages across Zones 1-5. These are big changes and put USPS in the pole position on heavier packages.
At a glance, what these changes mean for eCommerce stores and businesses that ship packages:
- Businesses that use Priority Mail will generally see lower shipping rates
- Businesses that ship heavier items will benefit the most on these new rates
- Improved USPS rates over FedEx/UPS for packages weighing 5-15 lbs.
- Retail pricing for shipments 0-5 lbs. is actually increasing (only affecting those still going to the post office to purchase postage)
Priority Mail shipping rate changes
The chart below reflects the new rates for users with access to Commercial Plus Pricing* via ShippingEasy. Specific zones will show differences in savings amount, these are the averages.
*All paid plan users of ShippingEasy automatically have access to Commercial Plus Pricing
The best savings come from packages weighing 5-20 lbs, with average savings of 43.2% for 10-15 lb. packages.
For rates on Commercial Base Pricing (available to Endicia customers and ShippingEasy Free Starter Plan) refer to this chart:
Want to understand Zones better? This page on the USPS.gov site will let you find which Zone your shipment falls under based on the beginning and ending destination zip code of your package.
USPS rates compared to FedEx/UPS
It’s no secret that the United States Postal Service is making these rate changes to be more competitive with FedEx and UPS when shipping heavier packages. According to our partner, Endicia, using Priority Mail, these new rate changes will save 42% on average* for packages weighing 5-10 lbs. in Zones 1-5 compared to FedEx/UPS Ground, and 35% average savings* for packages weighing 10-15 lbs. in Zones 1-5 compared to FedEx/UPS Ground.
*These savings are for Commercial Plus Pricing, which is available to all ShippingEasy users on paid plans.
USPS rates increasing for retail shipments
If you’re still shipping packages through retail pricing from USPS, then you are actually going to see an average price increase on packages weighing 0-5 lbs. This chart shows the rate changes for retail customers.
This means that while the new shipping rates are better for retail packages of heavier items, they will actually cost more on average for people shipping lighter packages, making retail shipping an even less viable option than it was in the past. If you’re still using retail pricing and shipping light packages, consider getting access to at least Commercial Base Pricing for your shipping needs, which free plan users of ShippingEasy have by default or Commercial Plus Pricing with paid plans.
Bringing it all together: Are the changes a good or bad thing?
These changes are positively a good thing for just about anyone that ships packages. The small increase to light retail packages can be easily avoided by getting access to at least Commercial Base Pricing from a shipping solution like ShippingEasy where we have a free starter plan, or get access to the best savings available with Commercial Plus Pricing.
It’s a good day to be an eCommerce business owner, and it’s going to get even better September 7th!