WASHINGTON — The U.S. Postal Service today filed notice with the Postal Regulatory Commission (PRC) of price changes for Shipping Services products to take effect next year, following the end of the holiday mailing season. The filing does not include any price increase for First-Class Package International Service, Priority Mail Express International and Priority Mail International.
The Postal Service continues to provide excellent value and reliability for the shipping industry, along with convenient choices for consumers. The average Shipping Services price change is 3.9 percent, which results in an average shipping price of less than $5 per shipment across all shipping products.
The new prices, if approved, represent a modest price increase in Priority Mail by 3.9 percent and an average of 3.3 percent in Priority Mail Retail prices.
The Priority Mail Flat Rate Box and Priority Mail Flat Rate Envelope prices for these products are:
Small flat-rate box
Medium flat-rate box
Large flat-rate box
Large APO/FPO flat-rate box
Regular flat-rate envelope
Legal flat-rate envelope
Padded flat-rate envelope
The PRC will review the prices before they are scheduled to take effect Jan. 22, 2017. The complete Postal Service price filing with the new prices for all Shipping Services products can be found on the PRC site under the Daily Listings section:http://www.prc.gov/dockets/daily
WASHINGTON, Nov. 6, 2014 /PRNewswire-USNewswire/ — The Postal Service kicked off the holiday shipping season today by announcing that it will be delivering packages seven days a week in major cities and high volume areas starting Nov. 17 through Christmas Day in response to expected double-digit package volume growth.
“The Postal Service will be out making deliveries every single day during the holiday season, including Christmas Day,” said Postmaster General Patrick Donahoe. “During the holidays, no carrier makes more deliveries to more places than the Postal Service, and this year, we’re raising the bar with enhanced tracking and Sunday delivery.”
The demand for package service has grown as online retailers ship more products to their customers. The Postal Service is adding package delivery on Sundays during the holidays to prepare for the heavy shipping season.
“Every household in America relies on us to get their packages in time for the holidays, and we take great pride in taking on that responsibility,” said Donahoe. “We’re prepared to do whatever it takes to deliver for our customers.”
Due to continued e-commerce growth and improvements to its Priority Mail product line, the Postal Service is expecting double-digit growth in its package business this holiday season, likely in the range of 450 to 470 million packages. That equates to roughly 12 percent growth over the same period last year.
“Football has its season. But the holidays? That’s our season,” said Donahoe. “That’s crunch time for us, and year after year, we step up our game. E-commerce package business continues to be a big player now more than ever, so we’ve enhanced our network to ensure America that we’ll deliver their cards, gifts and letters in time for the holidays.”
While its competitors recently announced price increases, the Postal Service lowered some of its prices for businesses and frequent shippers. The new Priority Mail pricing offers affordable shipping options along with improved tracking and reliability for business customers.
“The Postal Service is a vital business partner for small and large businesses and lowering shipping prices will save them money and improve their bottom line,” said Nagisa Manabe, chief marketing and sales officer. “With our affordable shipping options, we hope to attract new business customers and become their preferred delivery service.”
2014 Christmas Shipping Deadlines
For expected delivery of holiday mail and packages by Christmas, the Postal Service recommends keeping the following mailing and shipping deadlines in mind:
Dec. 2 – First-Class Mail International/Priority Mail International Dec. 10 – Priority Mail Express International Dec. 15 – Standard Post Dec. 17 – Global Express Guaranteed Dec. 20 – First-Class Mail/Priority Mail (domestic) Dec. 23 – Priority Mail Express (domestic)
Skip the lines and ship online
Consumers can avoid holiday hassles by visiting usps.com — the Postal Service’s website that will help make mailing and shipping easier. Nearly 75 million customers will skip the trip to the Post Office altogether and take advantage of convenient online shipping this holiday season. Click-N-Ship and other online services allow customers to print shipping labels, order free Priority Mail boxes, purchase postage and even request free next-day Package Pickup.
Launching holiday advertising campaign
The Postal Service is also launching its advertising campaign today with a wide range of media activities, ranging from direct mail to television and print advertisements, to social media and digital promotion.
“Our holiday marketing effort will be built around the idea that the Postal Service has been planning all year for this season and we are prepared to deliver the holidays for America,” said Manabe. “Our advertising goal is to attract new consumer and business customers and provide assurance for our customers that they can depend on our affordable and reliable service to deliver their mail and packages during this season.”
The eyefortransport logistics blog suggests that the USPS may pick up some more parcel business thanks to FedEx and UPS’s dimensional pricing, along with USPS price reductions:
Now let’s talk about parcels. In my last blog post I wrote about the move FedEx made to convert to dimensional pricing, matching UPS’s decision. I should point out that USPS has applied to the Postal Regulatory Commission for approval to lower some priority mail rates starting on September 7 this year.
The drop in pricing targets parcels transported up to 1,000 miles and weighing 3 to 40 pounds. Some zone pricing will drop more than 50 percent as the Postal Service tries to make some hay from the UPS and FedEx decisions to switch to DIM pricing.
When shopping your parcel shipping business, it would be wise to take a look at USPS.
WASHINGTON — The United States Postal Service today filed notice with the Postal Regulatory Commission (PRC) to change Priority Mail prices, including a reduction in prices on average for businesses and other customers who use Commercial Plus and Commercial Base online shipping services. The price change will include a modest increase for Priority Mail prices at Post Offices and other postal retail outlets. The proposed changes, which would go into effect in September 2014, are intended to offer more competitive pricing and build on Priority Mail’s popularity with customers.
“The Postal Service is a vital business partner for small and large businesses and lowering shipping prices will save them money and improve their bottom line,” said Nagisa Manabe, chief marketing/sales officer. “With our affordable shipping options, we hope to attract new business customers and become their preferred delivery service.”
Both Commercial Base and Commercial Plus prices will be reduced on average, with most of the decreases concentrated in the ground zones weighing between 7-16 pounds. Price for Commercial Base customers will be reduced on average by 0.9 percent, and prices for Commercial Plus customers will decline on average 2.3 percent.
“Unlike others in the shipping industry, the Postal Service is not implementing any new dimensional-weight charges, continuing our commitment to deliver the best value for our customers,” said Manabe.
The Postal Service will continue to offer Priority Mail customers free insurance, expected delivery day, flat-rate packaging options and Regional Rate Boxes. Priority Mail is one of the Postal Service’s most popular shipping products, helping to boost USPS package volumes and meet customers’ needs for convenience at competitive prices. Last year, 871 million pieces were shipped through Priority Mail.
“With the Postal Service, there are no shipping surcharges. We deliver on Saturdays for no extra charge, we pick up packages for free, and we deliver shipping boxes and envelopes, also for free. Just a few more ways we help businesses get the most out of their shipping*,” stated Manabe.
Commercial Base Pricing does not have any volume requirements and these reduced rates are available for customers who use Click-N-Ship, PC Postage products, permit imprints, or digital mailing systems (meters) that generate an IBI (Information Based Indicia) and submit data electronically to the USPS.**
Eligibility for Commercial Plus Pricing is based primarily on shipping volume. For Priority Mail, 50,000 pieces are required within the prior year. In lieu of past volume, customers can instead complete a customer commitment agreement.
Pricing at Post Offices and other retail outlets will have a modest increase of 1.7 percent on average.
Highlights of the new proposed retail pricing for Priority Mail products include:
Small box – $5.95
Medium box – $12.65
Large box – $17.90
Large APO/FPO box – $15.90
Regular envelope – $5.75
Legal envelope – $5.90
Padded envelope – $6.10
Priority Mail is the Postal Service’s flagship Shipping Services product, accounting for $6.4 billion in revenue in fiscal year 2013. It’s a convenient and fast way to send documents and packages requiring expedited transportation and handling.
The PRC will review the prices before they become effective Sept. 7, 2014, and must agree the prices are consistent with applicable law.3 The new price proposals will be available on the PRC website at www.prc.gov.
The pricing adjustments are part of a broader strategy to position the Postal Service for the future. USPS is also streamlining its mail processing operations, which will allow the organization to invest in new package sorting equipment and other upgrades, as it continues to seek legislative changes to update its business model.
* Except when Saturday is a national holiday. For details on free Package Pickup, visit usps.com/pickup; Available with the U.S. For use with Priority Mail, and Priority Mail International shipping. Boxes are delivered with our regular mail usually within 7 to 10 business days. To order, visit store.usps.com/store.
** Visit USPS.com or call your USPS sales consultant for eligibility requirements.
ShopSmart, the shopping magazine from the publisher of Consumer Reports, conducted a test of shipping options, and found the USPS to be the best value:
Ship it for less. ShopSmart compared shipping a 6-pound medium-sized box from New York to San Francisco using FedEx, the United Parcel Service and the U.S. Postal Service. It checked standard and express delivery times. The cheapest option: the Postal Service’s two-day Priority Mail Service, using its free flat-rate box (for up to 70 pounds). It was $40 less than the competition for the same two-day delivery. The Postal Service was also the cheapest option in other scenarios ShopSmart tried.
The USPS has released a promotional video featuring Spiderman (with a cameo by his creator, legendary cartoonist Stan Lee). to promote priority mail:
The U.S. Postal Service® and Spider-Man are two timeless and powerful heroes with similar characteristics; Speed, Agility, and Reliability. USPS is dependable and consistently delivers. Spider-Man is exceptional and there when needed most. Together they continue to go to great lengths to deliver for you, no matter what.
BUFFALO, NY — In the front room of the U.S. Post Office on Genesee Street, there’s a bright, red-white-and-blue sign with a recognizable phrase splattered on the top of it.
"In Priority We Trust."
The sign remains standing at that downtown location, but a source tells 2 On Your Side the sign has been removed at another location. In fact, at locations across the United States, the United States Postal Service has begun retracting these signs after "customers voiced concerns," perhaps because the phrase too closely resembles "In God We Trust." That’s the motto printed on U.S. coins and currency, enacted originally under President Dwight Eisenhower in 1955.