Understanding the May 2015 U.S. Postal Service Price Change Each year—at least once per year—the U.S. Postal Service ® (USPS ® ) changes rates across their various mail classes and extra services. Often concurrent with these rate changes, the USPS may introduce new products, such as a Flat Rate Box, or new regulations, such as presorted mail requirements. These events are referred to as USPS Price Changes. On May 31, 2015, there will be a price change inclusive of both the Shipping and Mailing categories. Both primary competitors of the USPS, UPS and FedEx, increased their rates in December 2014 and January 2015 respectively.
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Understanding the May 2015 U.S. Postal Service Price … the May 2015 U.S. Postal Service Price Change Each year—at least once per year—the U.S. Postal Service ® (USPS®) changes
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Understanding the May 2015 U.S. Postal Service Price Change
Each year—at least once per year—the U.S. Postal Service® (USPS®) changes rates across
their various mail classes and extra services. Often concurrent with these rate changes,
the USPS may introduce new products, such as a Flat Rate Box, or new regulations, such
as presorted mail requirements. These events are referred to as USPS Price Changes.
On May 31, 2015, there will be a price change inclusive of both the Shipping and Mailing
categories. Both primary competitors of the USPS, UPS and FedEx, increased their rates
Key Highlights or Changes: .................................................................................................................................................................3
Market Dominant vs. Competitive .......................................................................................................................................................4
Relevant Changes for Competitive Classes – “Shipping” ..........................................................................................................................5
First-Class Package Service (FCPS) ...................................................................................................................................................5
Standard Post ......................................................................................................................................................................................6
Priority Mail (PM) ..................................................................................................................................................................................7
Priority Mail Express (PME) .................................................................................................................................................................8
First-Class Package International Service (FCPIS) .............................................................................................................................9
Priority Mail International (PMI)..........................................................................................................................................................10
Priority Mail Express International (PMEI) .........................................................................................................................................12
Global Express Guaranteed (GXG) ....................................................................................................................................................13
Comparing Prices: Retail, Commercial Base and Commercial Plus .......................................................................................................14
Qualifying for Commercial Plus Pricing (CPP)...................................................................................................................................14
Relevant Changes for Market Dominant Classes – “Mailing” ..................................................................................................................15
First-Class Mail ..................................................................................................................................................................................15
Standard Mail.....................................................................................................................................................................................16
Media Mail..........................................................................................................................................................................................16
Library Mail ........................................................................................................................................................................................16
First-Class Mail International (FCMI) .................................................................................................................................................17
International Product Changes ..........................................................................................................................................................18
Certified Mail ......................................................................................................................................................................................19
PG 3
Overview
Brief DescriptionEach year – at least once per year – the U.S. Postal Service®
(USPS®) changes rates across their various mail classes and
extra services. Often concurrent with these rate changes, the
USPS may introduce new products, such as a Flat Rate Box, or
new regulations, such as presorted mail requirements. These
events are referred to as USPS Price Changes. On May 31,
2015, there will be a price change inclusive of both the Shipping
and Mailing categories. Both primary competitors of the USPS,
UPS and FedEx, increased their rates in December 2014 and
January 2015 respectively.
Endicia will update all service offerings with the new prices and
applicable regulations to ensure our customers are compliant
and print postage correctly. We are committed to providing our
customers with all USPS options as soon as they are available,
and we make it a priority to educate our customers and
partners about the changes and how they will be affected.
The May 2015 USPS price change includes two proposals filed
for approval with the Postal Regulatory Commission (PRC):
• Market Dominant CPI filing – Approved in April 2015
• Competitive filing – Approved in April 2015
Effective Date:
• U.S. Postal Service: Sunday, May 31, 2015 at 12:01am
Key Highlights or Changes:Starting Sunday, May 31, 2015, at 12:01am:
• Priority Mail International for Canada will switch to zone
based pricing – there will be 7 pricing zones versus the
previous single rate for the entire country.
• The USPS will reduce the $0.01 electronic postage /
meter discount to $.005 for First-Class Mail Letters (up to
3.5 oz.).
• Proposed, pending approval: First-Class Mail Parcel (Retail)
becomes First-Class Package Service (FCPS), which would
add a Retail pricing tier to the existing Commercial Base
and Commercial Plus pricing tiers for FCPS.
• USPS Tracking becomes free for Library Mail and Media
Mail and thus USPS Tracking is included for all domestic
mail classes at no additional cost with the exception of
Standard Mail which has a cost of $0.36 per piece.
• USPS will require a signature at delivery for all USPS
insured shipments with an insured value of more than
$500, up from $200; Signature Confirmation is included at
no additional fee
Additional Information:
• Priority Mail rates remain unchanged allowing shippers
to can take advantage of the lower rates that went into
effect in September 2014.
• FedEx and UPS implemented dimensional (DIM) weight
rating for all Ground shipments at the beginning of 2015.
This change means that large, lightweight items are
much more costly to ship than they were in 2014. It’s
important to check and see if the lower USPS Priority
Mail rates would be a more economical option.
PG 4
Background
Market Dominant vs. Competitive
Market Dominant mail classes are services for which the
USPS effectively has a monopoly in the market.
Because there are not equivalent services offered by other
carriers, the government restricts the maximum rate at which
the Postal Service can raise or change these prices. This
restriction means the average percent increase for each
Market Dominant mail class cannot exceed the current year’s
Consumer Price Index (CPI).
Competitive mail classes are USPS services that are similar to
services offered by private carriers such as FedEx and UPS.
The presence of marketplace competition increases the USPS’
flexibility when pricing these classes, including the ability to
offer volume or negotiated discounts. There is no maximum rate
cap for any increase in price for these mail classes.
Below is a table of each mail class by category:
Market Dominant Mail Classes
Competitive Mail Classes
First-Class Mail First-Class Package Service
Standard Mail Standard Post
Media Mail Parcel Select
Library Mail Priority Mail
Bound Printed Matter Priority Mail Express
First-Class Mail International
First-Class Package International
Service
Priority Mail International
Priority Mail Express International
Global Express Guaranteed
USPS Pricing TiersThe USPS offers discounted pricing options to certain types of
customers for specific types of mail classes. They are also able
to negotiate prices for high-volume domestic and international
shippers. These negotiated rates are not “published” rates
and therefore not covered in our Price Change information.
Published pricing tiers include the following:
• Retail Price: Retail pricing refers to the standard
counter price for postage purchased at the Post Office™
or other physical retail locations.
• Commercial Base Pricing (CBP): Commercial
Base Pricing refers to the discounted postage
price for certain mail classes available to electronic
postage users. The vast majority of Endicia customers
automatically receive CBP for applicable Competitive
mail classes.
• Commercial Plus Pricing (CPP): Commercial Plus
Pricing refers to deeply discounted postage prices for
certain mail classes available to qualified high-volume
shippers. Endicia customers who qualify for CPP pricing
automatically receive them through their software or
application.
PG 5
Relevant Changes for Competitive Classes – “Shipping”
First-Class Package Service (FCPS)
• Proposed, pending approval: The USPS will move First-
Class Mail Parcel, currently a Market Dominant product, to
the Competitive group. This product will be renamed First-
Class Package Service and become the Retail pricing tier to
complement the existing Commercial Base and Commercial
Plus pricing tiers for FCPS. Endicia customers, unless part
of the USPS Approved Shipper program, will continue to
use the Commercial Base (or Commercial Plus, if qualified)
pricing tier for their FCPS packages.
• What do shippers use FCPS service for?
FCPS is used for items that weigh 13 ounces or less, are
more than ¾ of an inch thick (or ¼" thick, if rigid) and 108" or
less in length + height + width. It’s great for small, low-value
items like product samples or swatches, single t-shirts, or
small stuffed animals.
In order to qualify for the Commercial Plus Pricing tier, a
shipper must have a customer commitment agreement with
the USPS to send more than 5,000 FCPS packages in a
calendar year. Shippers that qualify for FCPS Commercial
Plus discounts can ship packages that weigh up to one
pound (15.999 ounces).
• What is the delivery standard for FCPS?
The delivery standard for FCPS is 2-3 days (not guaranteed).
This is comparable to FedEx or UPS 2-3 day service for
packages weighing less than one pound.
• Average overall increase:
- Retail:
FCPS: Retail Pricing
Weight 2015 Price Change vs. 2014
1 oz. $2.54 +$0.22
2 oz. $2.54 +$0.22
3 oz. $2.54 +$0.22
4 oz. $2.74 +$0.24
5 oz. $2.94 +$0.26
6 oz. $3.14 +$0.28
7 oz. $3.34 +$0.30
8 oz. $3.54 +$0.32
9 oz. $3.74 +$0.34
10 oz. $3.94 +$0.36
11 oz. $4.14 +$0.38
12 oz. $4.34 +$0.40
13 oz. $4.54 +$0.42
PG 6
- Commercial Base Pricing (CBP):
FCPS Commercial Base Pricing is increasing by an
average of 5.1%, which equates to an average of $0.13
more per package.
-
FCPS: Commercial Base Pricing
Weight 2015 Price Change vs. 2014
1 oz. $2.04 +$0.11
2 oz. $2.04 +$0.11
3 oz. $2.04 +$0.11
4 oz. $2.13 +$0.12
5 oz. $2.22 +$0.13
6 oz. $2.35 +$0.10
7 oz. $2.53 +$0.11
8 oz. $2.71 +$0.12
9 oz. $2.89 +$0.13
10 oz. $3.07 +$0.14
11 oz. $3.25 +$0.14
12 oz. $3.44 +$0.15
13 oz. $3.63 +$0.16
Commercial Plus Pricing (CPP):
Commercial Plus Pricing kicks in for weights between 13 oz.
and 16 oz. and only applies to the extended weight options
available to these shippers. Pricing for the standard weight
range of First-Class Package Service is the same as the
Commercial Base tier.
The price for the Commercial Plus weight group is
not increasing in 2015.
• Tracking:
Tracking is FREE for FCPS.
Standard Post
• What do shippers use this service for?
Standard Post is geared toward heavier or larger packages
that don’t require expedited delivery. Standard Post is
designed to compete with UPS and FedEx Ground services,
with the real benefit to shippers being that, unlike the private
carriers, the USPS does not add surcharges for things like
fuel, Saturday delivery or rural delivery.
Standard Post is ONLY available at the retail counter.
The comparable mail class available to Endicia customers is
Parcel Select, which features the same delivery time and is
less expensive than Standard Post for all weights and zones.
There are no flat rate or regional rate options for Standard
Post, nor are there any Commercial Base or Commercial
Plus discounts for this mail class.
• What is the delivery standard for Standard Post?
The delivery standard for Standard Post is 2-9 days (not
guaranteed) in the continental United States. This is
comparable to FedEx or UPS Ground service.
Pricing for Standard Post shipments going to Zones 1-4
is exactly the same as that of Priority Mail® Retail. These
packages will automatically be processed as Priority Mail
service, unless Ground service is required. Ground service is
required when the item being mailed cannot travel by air, as
in the case of hazardous materials.
• Average overall increase:
There is only one price tier for Standard Post. Standard Post
pricing will increase on average by 10.2% versus 2014. This
increase equates to an average of an additional $5.00 per
package.
For packages weighing 5 lbs. or less, Standard Post pricing
will increase an average of +7.5% or +$0.70 per piece.
• Tracking:
Tracking is FREE for Standard Post.
PG 7
Parcel Select (non-presort)
• What do shippers use this service for?
Parcel Select® is geared toward items that don’t require
expedited delivery. It is similar in delivery standard to
Standard Post, but more economical in all cases and is the
USPS Ground delivery option for electronic Postage users.
There are no Commercial Base or Commercial Plus
discounts for Parcel Select. For packages going to Zones
1-4, Priority Mail Commercial Base prices are less
expensive than Parcel Select, with delivery likely faster
than Parcel Select. For packages weighing 1 lb., Priority
Mail is less expensive to all Zones.
There are no flat rate or regional rate options for
Parcel Select.
• What is the delivery standard for Parcel Select?
The delivery standard for Parcel Select is 2-9 days (not
guaranteed). This is comparable to FedEx or UPS
Ground service.
• Average overall increase:
There is only one price tier for Parcel Select. Parcel Select
pricing will increase on average by 10.2%, which equates to
approximately $5.00 more per package.
Lightweight packages will see less of an impact. For those
weighing 5 lbs. or less, the increase will be 7.5% on average,
or approximately $0.70 per package.
• Tracking:
Tracking is FREE for Parcel Select.
Priority Mail (PM)
• What do shippers use this service for?
Priority Mail is an excellent and economical option for
businesses shipping packages to residential addresses
that want quick delivery with free tracking, while remaining
cost-conscious. It offers many options, including regular
zone-based pricing, flat rate envelopes and boxes, regional
rate packaging, cubic pricing and Critical Mail envelopes.
The Postal Service also offers a variety of free packaging for
Priority Mail shipments, which can save businesses even
more money. In addition, Priority Mail includes free tracking
and $50 of free USPS insurance coverage.
Priority Mail includes three price tiers: Retail, Commercial
Base, and Commercial Plus
• What is the delivery standard for Priority Mail?
The delivery standard for Priority Mail is 2-3 days (not
guaranteed). This is comparable to FedEx or UPS 2-3
day service.
• Rates for PM across retail, Commercial Base, and
Commercial Plus remain unchanged from the September
2014 Price Change
- Critical Mail
Critical Mail (CM) is a Commercial Plus mail class, only
available to shippers who meet or commit to a volume
requirement of 5,000 CM pieces in a calendar year. CM
offers two package options: Letter and Flat, as well as a
Signature Upon Delivery pricing option.
There is no change to Critical Mail pricing for 2015.
- Cubic
Priority Mail Cubic is a Commercial Plus mail class, available
to shippers who meet or commit to a volume requirement
of 50,000 Cubic-priced pieces in a calendar year. There are
no additions to the Priority Mail Cubic mail class options or
package sizes.
There is no change to Cubic pricing for 2015.
PG 8
• Flat Rate and Regional Rate Pricing Tables:
There are no changes to Retail, Commercial Base and
Commercial Plus Pricing tiers.
Priority Mail Flat Rate: Commercial Base Pricing
Package Type 2015 Price Change vs. 2014
Flat Rate Envelope $5.05 NO CHANGE
Legal Flat Rate Envelope $5.25 NO CHANGE
Padded Flat Rate Envelope $5.70 NO CHANGE
Small Flat Rate Box $5.25 NO CHANGE
Medium Flat Rate Box $11.30 NO CHANGE
Large Flat Rate Box $15.80 NO CHANGE
APO/FPO Large Flat Rate Box $13.80 NO CHANGE
• Tracking:
Tracking is FREE for Priority Mail.
Priority Mail Express (PME)
• What do shippers use this service for?
Priority Mail Express is perfect for packages that need to
be delivered very quickly, with overnight delivery to most
locations and second day delivery in outlying areas. Priority
Mail Express includes free tracking and up to $100 of free
USPS insurance coverage.
As with Priority Mail, Priority Mail Express users can leverage
regular zone-based pricing, as well as flat rate envelopes and
flat rate boxes. The Postal Service also offers a variety free
packaging for Priority Mail Express shipments, which can
save businesses even more money.
Priority Mail Express includes three price tiers: Retail,
Commercial Base, and Commercial Plus.
• What is the delivery standard for Priority Mail Express?
The delivery standard for Priority Mail Express is 1-2
days (guaranteed). This is comparable to FedEx or UPS
Overnight service in most locations and 2-day service in
remote locations.
• Key changes for PME:
Outside of pricing, there is one key change shippers should
be aware of with regard to Priority Mail Express:
- The USPS is combining both domestic and International
Insurance pricing into one table and there will no longer
be separate insurance tables .
• Tracking:
Tracking is FREE for Priority Mail Express .
PG 9
First-Class Package International Service (FCPIS)
• What do shippers use this service for?
First-Class Package International Service® (FCPIS) is the
most economical way to ship packages that are more than
¾" thick and weigh less than 4 lbs. that do not require time-
sensitive delivery.
• What is the delivery standard for FCPIS?
The delivery standard for FCPIS varies widely by country and
is often dependent on the quality of each country’s local Post.
• Average overall increase:
- Retail
The Retail price for FCPIS is increasing by an average of
7.3% per package, which equates to an increase in the
average price per package of $1.32
For packages weighing 5 lbs. or less, Retail rates are
increasing an average of +8.15% or +$0.68 per piece.
- Commercial Base Pricing:
The Commercial Base price for FCPIS is increasing by
an average of 6.9% per package, which equates to an
increase in the average price per package of $1.20
For packages weighing 5 lbs. or less, Commercial Base
rates are increasing an average of +4.93% or +$0.40
per piece.
- Commercial Plus Pricing:
The Commercial Plus price for FCPIS is increasing by
an average of 4.8% per package, which equates to an
increase in the average price per package of $0.82
For packages weighing 5 lbs. or less, there is less of
an impact and Commercial Plus rates are increasing an
average of +1.71% or +$0.16 per piece.
• Tracking/Delivery Confirmation:
Electronic USPS Delivery Confirmation International™ is
FREE on FCPIS packages going to select destinations. The
following countries support this service: Australia, Belgium,
Brazil, Canada, Croatia, Denmark, Estonia, Finland, France,
Germany, Gibraltar, Great Britain, Hungary, Israel, Italy,
Latvia, Lithuania, Luxembourg, Malaysia, Malta, Netherlands,
New Zealand, Northern Ireland, Portugal, Singapore, Spain
and Switzerland.
PG 10
Priority Mail International (PMI)
• What do shippers use this service for?
Priority Mail International® (PMI) is a reliable and affordable
way to ship non-time sensitive packages up to 70 lbs to
international locations. PMI includes delivery status with
the USPS Track & Confirm tool on all package types except
the Flat Rate Envelopes and Small Flat Rate Boxes, which
instead include free electronic Delivery Confirmation™ to
select countries.
• What is the delivery standard for PMI?
The delivery standard for PMI is 6-10 business days
(to most destinations).
• Key changes for PMI
Priority Mail International for Canada will switch to zone
based pricing – there will now be 7 pricing zones versus
one overall rate previously. By doing this, the USPS will be
able to keep rates low for select locations and minimize the
effect on shippers. Now with zone based pricing, this allows
the USPS to charge based on the actual US origin and
destination to Canada, instead of having to factor expensive
routes into one blended rate.
- Looking at some of the major US cities such as San
Francisco or New York, utilizing Priority Mail International
to Canada, on average, the PMI rates have decreased
across Retail, Commercial Base and Commercial Plus
Pricing tiers.
- For Commercial Base Rates, Zone 1.7 and Zone 1.8
are where rates are increasing the most. Zone 1.7 is
increasing by an average of 18.44% or $17.16 per
package and Zone 1.8 is increasing by an average of
30.95% or $30.59 per package. Depending on where the
shipping facility is located and the weight of the package,
shippers may be less affected and some may even
benefit from a decrease in PMI pricing (see chart below
for example locations).
PMI Canada: Commercial Base Pricing Examples
Origin Destination Zone
Average 2015
Change ($)
Average 2015
Change (%)
San Francisco, CA Canada 1.1 & 1.2 -$8.48 -6.29%
New York, NY Canada 1.1 & 1.2 -$8.48 -6.29%
Boston, MA Canada 1.3 +$3.39 +3.90%
Orlando, FL Canada 1.3 +$3.39 +3.90%
Wichita, KS Canada 1.4 +$6.79 +8.16%
Dallas, TX Canada 1.5 +$8.80 +10.87%
Anchorage, AK Canada 1.6 +$9.64 +11.84%
Juneau, AK Canada 1.7 +$17.16 +18.44%
Honolulu, HI Canada 1.8 +$30.59 +30.95%
• Average overall increase (excluding Canada):
- Retail
The Retail price for PMI is increasing by an average of
+6.6% per package, which equates to an increase in the
average price per package of +$9.28.
Flat Rate packaging Retail prices are increasing an
average of +7.1% or +$3.44 per package.
- Commercial Base Pricing:
The Commercial Base price for PMI is increasing by an
average of +3.3% per package, which equates to an
increase in the average price per package of +$3.76.
Flat Rate packaging Commercial Base prices are
increasing an average of +7.3% or +$3.31 per package.
- Commercial Plus Pricing:
The Commercial Plus price for PMI is increasing by an
average of 0.5% per package, which equates to an overall
decrease in the average price per package of -$0.22.
Flat Rate packaging Commercial Plus prices are
increasing an average of +7.3% or +$3.31 per package.
PG 11
• Average overall increase (Canada only):
- Retail
The Retail price for PMI to Canada is increasing by an
average of +12.15% per package, which equates to an
increase in the average price per package of +$11.77.
For Zones 1.1 & 1.2, Retail rates for PMI will be decreasing
by an average of 4.01%, which equates to a decrease in
the average price per package of $7.06. The decreases are
focused primarily on packages 19 lbs. or higher.
ZonesAverage 2015 Change
($)Average 2015 Change
(%)
1.1 & 1.2 -$7.06 -4.01%
1.3 +$6.58 +6.42%
1.4 +$10.50 +10.79%
1.5 +$12.81 +13.57%
1.6 +$13.77 +14.56%
1.7 +$22.41 +21.32%
1.8 +$23.38 +22.41%
Flat Rate packaging Retail prices are increasing an
average of +7.0% or +$2.45 per package.
- Commercial Base Pricing:
The Commercial Base price for PMI is increasing by an
average of +11.12% per package, which equates to an
increase in the average price per package of +$9.70.
For Zones 1.1 & 1.2, Commercial Base rates for PMI will
be decreasing by an average of 6.29%, which equates
to a decrease in the average price per package of $8.48.
The decreases are focused primarily on packages up to
1 lb. and then packages weighing more than 13 lbs.
ZonesAverage 2015 Change
($)Average 2015 Change
(%)
1.1 & 1.2 -$8.48 -6.29%
1.3 +$3.39 +3.90%
1.4 +$6.79 +8.16%
1.5 +$8.80 +10.87%
1.6 +$9.64 +11.84%
1.7 +$17.16 +18.4%
1.8 +$30.59 +30.95%
Flat Rate packaging Commercial Base prices are
increasing an average of +7.00% or +$2.33 per package.
- Commercial Plus:
The Commercial Plus price for PMI is increasing by an
average of 6.61% per package, which equates to an
overall increase in the average price per package of
+$4.60.
For Zones 1.1 & 1.2, Commercial Plus rates for PMI will
be decreasing by an average of 8.74%, which equates to
a decrease in the average price per package of $10.28.
ZonesAverage 2015 Change
($)Average 2015 Change
(%)
1.1 & 1.2 -$10.28 -8.74%
1.3 +$0.50 +1.16%
1.4 +$3.59 +5.31%
1.5 +$5.42 +7.96%
1.6 +$6.17 +8.91%
1.7 +$13.00 +15.32%
1.8 +$13.77 +16.36%
The decreases are focused primarily on packages up to
5 lbs. and then packages weighing more than 10 lbs.
Flat Rate packaging Commercial Plus prices are
increasing an average of +7.00% or +$2.33 per package.
PG 12
• Tracking/Delivery Confirmation:
Track and Confirm is FREE for PMI, but NOT available
with Flat Rate Envelopes or Small Flat Rate Box. However,
electronic USPS Delivery Confirmation International is
FREE for these two types of PMI packages going to select
destinations. The following countries support this service: