understanding the january 2016 u.s. postal service … the january 2016 u.s. postal service price...

Understanding the January 2016 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 or eliminate products, such as a Flat Rate Box, or

regulations, such as presorted mail requirements. These events are referred to as the

USPS Price Change. On January 17, 2016 there will be a price change for shipping mail

classes. Both primary competitors of the USPS, UPS and FedEx, will increase their rates

in late December 2015 and early January 2016, respectively.

PG 2

ContentsOverview

Brief Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Key Highlights or Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Background

Market Dominant vs . Competitive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

USPS Pricing Tiers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Relevant Changes for Competitive Classes – “Shipping”

First Class Package Service (FCPS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Retail Ground (previously Standard Post) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Parcel Select Ground (previously Parcel Select Non-presort) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Priority Mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Priority Mail Express (PME) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

First-Class Package International Service (FCPIS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Priority Mail International (PMI) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Priority Mail Express International (PMEI) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Global Express Guaranteed (GXG) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Comparing Prices: Retail, Commercial Base and Commercial Plus

Commercial Rate Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

USPS Price Tier Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Private Carrier Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Additional Changes

Integrated Customs Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

USPS Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Package Intercept Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Adult Signature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 or eliminate products, such as a Flat Rate

Box, or regulations, such as presorted mail requirements . These

events are referred to as USPS Price Changes . On January 17,

2016 there will be a price change for the shipping mail classes .

Both primary competitors of the USPS, UPS and FedEx, will

increase their rates in late December 2015 and early January

2016, respectively .

Effective Date:

• U.S. Postal Service: Sunday, January 17, 2016

• FedEx: Monday, January 4, 2016

• UPS: Monday, December 28, 2015

The January 2016 USPS price change includes a competitive

products filing, which the Postal Regulatory Commission (PRC)

approved in November 2015 .

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 .

Key Highlights or Changes:Starting at 12:01 a .m . Sunday, January 17, 2016:

• Commercial Plus Pricing (CPP) discounts over

Commercial Base Pricing (CBP) are being greatly

reduced or in some cases eliminated.

• The following product offerings will be eliminated:

- Priority Mail Express® Flat Rate Box (side loading and top

loading, domestic and international)

- Priority Mail® Regional Rate C Box (domestic and

international)

- Critical Mail and Critical Mail with Signature

(letters and flats)

- Parcel Select Origin Network Distribution Center (ONDC)

Presort and Network Distribution Center (NDC) Presort

- Parcel Return Service Return Network Distribution Center

(RNDC)

• Parcel Select Non-presort will be rebranded as Parcel

Select Ground.

• Standard Post will be renamed Retail Ground.

• The 14, 15, and 15.999 ounce First-Class Package

Service (FCPS) offerings previously only available with

Commercial Plus will be consolidated into the Commercial

Base price category. This pricing will be available to all

commercial mailers. No additional minimums will apply

and an agreement will not be required.

International Changes:

• A new label layout will be implemented for both domestic

and international labels that require an integrated

customs form.

• Up to $200 of merchandise insurance will be offered for

Priority Mail International® with the exception of Priority

Mail International Flat Rate® Envelopes and Small Flat

Rate Boxes.

There are no price changes to Market Dominant mail classes .

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 .

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 Postal

Service’s 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 MailRetail Ground

(formerly Standard Post)

Media MailParcel Select Ground

(formerly Parcel Select)

Library Mail Priority Mail

Bound Printed Matter Priority Mail Express

First-Class Mail InternationalFirst-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 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 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 discounts automatically receive them through their

software or application.

Additional InformationWith the January 2016 Price Change, CPP rates will either be

brought within 3% of CBP rates or raised to match CBP rates,

depending on mail class . In addition, the Postal Service is

restructuring Click-N-Ship® to offer only Retail prices . Click-N-

Ship will no longer be an authorized payment method for Priority

Mail Express and Priority Mail Commercial Base Pricing .

The Postal Service’s long-term goal is to eliminate the

Commercial Plus Pricing category at some point in 2017 to

match up with the industry standards of publishing only one

set of commercial rate tables and offering negotiated service

agreements to discount rates for high-volume shippers . However,

since CPP is not going away completely in 2016, the CPP

thresholds are not changing . So if a shipper qualifies for CPP

in 2015, they will remain on CPP . The USPS will also determine

whether certain customers will be eligible for negotiated rates,

but will do so on a customer-by-customer basis .

PG 5

Relevant Changes for Competitive Classes – “Shipping”

First-Class Package Service (FCPS)

• What do shippers use this service for?

First-Class Package® Service continues to be positioned as

a lightweight (less than 1 pound) offering used by businesses

for fulfillment purposes . FCPS is used for items that weigh

1 pound or less 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 .

• 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 1 pound .

• Key changes for FCPS:

Commercial Plus pricing for FCPS will be eliminated, and

the 14, 15, and 15 .999 ounce offerings previously only

available with Commercial Plus will be consolidated into

the Commercial Base price category . In addition, 14-15 .999

ounce offerings previously shared one flat rate—in 2016 each

ounce from 14-16 ounces will be given an individual rate .

Additional changes:

- The flat rate for 1-3 ounce weights has changed and will

now apply to packages weighing 1-8 ounces .

- FCPS will only support single-piece pricing and the pricing

categories for 3-digit, 5-digit, and ADC presort levels will

be eliminated .

• Average overall increase:

- Retail

There is no Retail price tier for FCPS . Shippers going to

the retail counter to purchase this type of postage will use

First-Class Mail Parcel service instead .

- Commercial Base Pricing

FCPS Commercial Base Pricing is increasing by an

average of 7 .6%, which equates to approximately $0 .13

more per package .

• Tracking:

USPS Tracking is FREE for FCPS, with no change to this

structure YOY .

Retail Ground (Previously Standard Post)


Retail Ground (previously Standard Post™) is geared toward

heavier or larger packages that don’t require expedited delivery .

Retail Ground is designed to compete with UPS or 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 .

Retail Ground is ONLY available at the retail counter.

The comparable mail class available to Endicia customers is

Parcel Select® Ground, which features the same delivery time and

is less expensive than Retail Ground for all weights and zones .

There are no flat rate or regional rate options for Retail

Ground, nor are there any Commercial Base or Commercial

Plus discounts for this mail class .

• What is the delivery standard for Retail Ground?

The delivery standard for Retail Ground is 2-9 days (not

guaranteed) in the continental United States . This is

comparable to FedEx or UPS Ground service .

• Key changes for Retail Ground:

The product previously called Standard Post will be renamed

Retail Ground in 2016 .

Pricing for Retail Ground shipments going to Zones 1-4 will

remain 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 .


There is only one price tier for Retail Ground . Retail Ground

pricing will increase on average by 4 .4% versus 2015 . This

increase equates to an average of an additional $1 .01 per

package .

• Tracking:

USPS Tracking is FREE for Retail Ground .

PG 6

Parcel Select Ground (previously Parcel Select Non-presort)


Parcel Select Ground is geared toward items that don’t have

a requirement for expedited delivery . It is similar in delivery

standard to Retail Ground, 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 Ground . For packages going

to Zones 1-4, Priority Mail Commercial Base prices are

actually less expensive or equal. For packages going

to Zones 5-8, the rates for Priority Mail are generally

just a few cents more than Parcel Select Ground, with

faster delivery times that will create a positive consumer

experience. In fact, for packages weighing 2 or 3 pounds,

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 Ground?

The delivery standard for Parcel Select is 2-9 days

(not guaranteed) . This is comparable to FedEx or UPS

Ground service .

• Key changes for Parcel Select:

Outside of pricing and the name change for Parcel Select

Ground, there are two key changes shippers should be

aware of with regard to the overall Parcel Select group of

mail classes . First, Parcel Select Lightweight® machinable

and irregular price tables will be combined, but the

operational requirements will remain the same . Second,

Parcel Select ONDC Presort and NDC Presort price

categories will be eliminated, while the DDU, DSCF and

DNDC price categories remain .


There is only one price tier for Parcel Select Ground . Pricing

will decrease on average by 7 .7%, which equates to an

approximate $2 .85 less in cost per package versus 2015 prices .

• Tracking:

USPS Tracking is FREE for Parcel Select Ground .

Priority Mail


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, and cubic pricing . 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 .

• Key changes for Priority Mail:

Outside of pricing, there are three key changes shippers

should be aware of with regard to Priority Mail:

- Commercial Plus Pricing for Priority Mail will be brought

within 3% of Commercial Base Pricing .

- The Regional Rate Box C will be eliminated due to low

customer usage .

- Critical Mail will also be eliminated due to low

customer usage .

PG 7


- Retail

CategoryAverage Increase

Average Change Per Package

Zones 1-8 4 .3% +$2 .08

Zone 9 20 .0% +$20 .06

Flat Rate Envelope 12 .2% +$0 .70

Legal Flat Rate Envelope 9 .3% +$0 .55

Padded Flat Rate Envelope 11 .5% +$0 .70

Small Flat Rate Box 14 .3% +$0 .85

Medium Flat Rate Box 6 .3% +$0 .80

Large Flat Rate Box 4 .7% +$0 .85

APO/FPO Large Flat Rate Box 5 .3% +$0 .85




Zones 1-8 2 .4% +$1 .01

Zone 9 25 .0% +21 .84








- Commercial Plus Pricing



Zones 1-8 19 .1% +$5 .13

Zone 9 33 .0% +$24 .43








- Regional Rate options

Box TypeZones 1-8Average Increase

Zones 1-8Average

Change per Package

Zone 9Average Increase

Zone 9Average

Change per Package

Box A 10 .1% +$0 .71 25 .0% +$2 .99

Box B 5 .1% +$0 .48 25 .0% +$4 .88

Rates for Regional Rate boxes are the same for

Commercial Base and Commercial Plus customers .

There is an additional fee of $0 .75 per package if a

Regional Rate box is deposited at Retail .

Regional Rate Box C will be eliminated in 2016 . Current

users may want to consider trying Priority Mail Flat Rate

boxes or Regional Rate Box A or Box B for smaller items .

Priority Mail and Parcel Select Ground zone-based

options are available for larger items .

- Critical Mail

Critical Mail will be eliminated in 2016 . Priority Mail Flat

Rate Envelopes with or without Signature Confirmation

may be used as an alternative .

PG 8

- Flat Rate and Regional Rate Pricing Tables

Endicia customers have enthusiastically adopted the

Priority Mail Flat Rate and Regional Rate options .

Recognizing the importance of these packaging types

and their actual prices, below is the Flat Rate pricing

table for Retail, Commercial Base and Commercial Plus

tiers, as well as the Zone prices for Regional Rate (Retail

add $0 .75/package) . Commercial Base is the pricing for

the majority of Endicia users .

Note: No Monthly Fee customers pay the Retail price.

Flat Rate Package Type

RetailCommercial

BaseCommercial

Plus

Flat Rate

Envelope$6 .45 $5 .75 $5 .60

Legal Flat Rate

Envelope$6 .45 $5 .75 $5 .60

Padded Flat

Rate Envelope$6 .80 $6 .10 $5 .90

Small Flat

Rate Box$6 .80 $6 .10 $5 .90

Medium Flat

Rate Box$13 .45 $11 .95 $11 .60

Large Flat Rate

Box$18 .75 $16 .35 $15 .85

APO/FPO Large

Flat Rate Box$16 .75 $14 .35 $13 .85

Regional Rate

Zone L, 1&2

Zone 3

Zone 4

Zone 5

Zone 6

Zone 7

Zone 8

Zone 9

Box A $6 .01 $6 .15 $6 .60 $8 .15 $8 .92 $9 .70 $10 .77 $14 .95

Box B $6 .71 $7 .90 $8 .75 $10 .66 $13 .37 $15 .14 $17 .09 $24 .41

-

- Cubic

Priority Mail Cubic, though a Commercial Plus mail class,

will remain in 2016 . It is 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 . Increase information is below:

Cubic Foot Range Up To

Zones 1-8Average Increase

Zones 1-8Average

Change per Package

Zone 9Average Increase

Zone 9Average

Change per Package

0 .10 20 .8% +$1 .04 35 .7% +$2 .49

0 .20 12 .5% +$0 .69 27 .8% +$2 .10

0 .30 9 .9% +$0 .72 28 .5% +$3 .40

0 .40 7 .4% +$0 .61 24 .6% +$3 .91

0 .50 1 .5% +$0 .05 18 .6% +$3 .78

• Tracking:

USPS Tracking is FREE for Priority Mail .

PG 9

Priority Mail Express (PME)


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 .

The Postal Service also offers a variety of 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 PME?

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 are two key changes shippers

should be aware of with regard to Priority Mail Express:

- Commercial Plus pricing as a whole will be increased to

match Commercial Base pricing .

- The Priority Mail Express Flat Rate Box (both side

loading and top loading) will be eliminated due to

insufficient volumes .


- Retail



Zones 1-8 0 .2% +$0 .04

Zone 9 0% $0





Zones 1-8 42 .1% +$38 .36

Zone 9 7 .0% +$9 .02


For packages weighing 5 pounds or less, Commercial

Base rates (Zones 1-8) are increasing an average of

20 .9% or $5 .31 per piece .




Zones 1-8 48 .2% +$42 .52

Zone 9 12 .2% +$17 .15



Plus rates (Zones 1-8) are increasing an average of

40 .8% or $8 .72 per piece .

• Tracking:

USPS Tracking is FREE for Priority Mail Express .

PG 10

First-Class Package International Service (FCPIS)


First-Class Package International Service® is the most

economical way to ship packages that are more than 0 .75”

thick and weigh less than 4 pounds that do not require time-

sensitive delivery .

Commercial Plus prices for First-Class Package International

Service will be matched to Commercial Base Pricing.

• 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 .


- Retail

The Retail price for FCPIS is increasing by an average of

21 .5% per package, which equates to an increase in the

average price per package of $4 .11 .


Commercial Base pricing for FCPIS is increasing by an

average of 28 .2% per package, which equates to an

increase in the average price per package of $4 .98 .


Commercial Plus pricing for FCPIS is increasing by an



• Tracking:

Electronic USPS Tracking International is FREE on FCPIS

packages going to select destinations .

Priority Mail International (PMI)


Priority Mail International® is a reliable and affordable way

to ship non-time sensitive packages up to 70 pounds 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 Box, which instead

include free USPS Tracking 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:

- Insurance will be offered up to $200 for merchandise and

$100 for documents with the exception of PMI Flat Rate

Envelopes and Small Flat Rate Boxes .

- Prices for PMI flat rate envelopes and boxes will be

further separated into additional country groups .

- The PMI Regional Rate Box C will no longer be available .

• Average overall increase (excluding Canada):

- Retail

The Retail price for PMI is increasing by an average of



For packages weighing 5 pounds or less, Retail rates are

increasing an average of 3 .3% or $1 .68 per piece .

Flat Rate packaging Retail prices are increasing an

average of 14 .1% or $4 .99 per package .


The Commercial Base price for PMI is increasing by an




Base rates are increasing an average of 12 .8% or $5 .63

per piece .

Flat Rate packaging Commercial Base prices are

increasing an average of 13 .9% or $4 .69 per package .


The Commercial Plus price for PMI is increasing by an




Plus rates are increasing an average of 24 .2% or $9 .69

per piece .

Flat Rate packaging Commercial Plus prices are


PG 11

• Average overall increase (Canada only):

- Retail

The Retail price for PMI to Canada is increasing by an

average of 3 .9%, which equates to an increase in the


For PMI to Canada packages weighing 5 pounds or less,

Retail rates are increasing an average of 2 .4% or $0 .95

per piece .

For PMI to Canada, Flat Rate packaging Retail prices are



The Commercial Base price for PMI to Canada is

increasing by an average of 12 .0% per package, which

equates to an increase in the average price per package

of $13 .17 .


Base rates to Canada are increasing an average of

11 .5% or $4 .02 per piece .

For Flat Rate packaging, Commercial Base prices to

Canada are increasing an average of 6 .2% or $1 .41

per package .


The Commercial Plus price for PMI to Canada is

increasing by an average of 25 .0% per package, which

equates to an increase in the average price per package

of $24 .78 .


Plus rates to Canada are increasing an average of 23 .1%

or $7 .36 per piece .

Flat Rate packaging Commercial Plus prices to Canada

are increasing an average of 6 .2% or $1 .41 per package .

• Flat Rate options:

PMI offers five Flat Rate options: a standard envelope and a

legal envelope, which are priced the same, as well as small,

medium and large boxes .

• Tracking:

USPS Tracking is FREE for PMI, but NOT available with Flat

Rate Envelopes, and is only available with the Small Flat

Rate Box to select countries .

Priority Mail Express International (PMEI)


Priority Mail Express International® offers shippers

economical expedited international delivery to most

countries, with date-specific service to select major market

countries (i .e . Australia, China, Great Britain) . PMEI includes

$200 insurance coverage, free tracking and a money-back

guarantee in certain countries .

• What is the delivery standard for PMEI?

The delivery standard for PMEI is 3-5 business days (date-

specific delivery available to certain markets) .

• Key changes for PMEI:

- Commercial Plus prices for PMEI will be matched to

Commercial Base pricing .

- PMEI Flat Rate Envelopes will be further separated into

additional country groups .

- The PMEI Flat Rate Box will be eliminated due to low

customer usage .


- Retail

The Retail price for PMEI is increasing by an average of





Flat Rate envelope Retail prices are increasing an

average of 20 .2% or $9 .98 per package .


The Commercial Base price for PMEI is increasing by

an average of 15 .9% per package, which equates to an




per piece .

Flat Rate envelope Commercial Base prices are


PG 12


The Commercial Plus price for PMEI is increasing an





per piece .

Flat Rate packaging Commercial Plus prices are


• Flat Rate options:

PMEI offers two Flat Rate options, a standard envelope and

a legal envelope (priced the same) . The PMEI Flat Rate Box

will be eliminated in 2016 .

• Tracking:

USPS Tracking is FREE for PMEI .

Global Express Guaranteed (GXG)


Global Express Guaranteed® is perfect for the international

shipment of items or documents that require fast,

guaranteed delivery with advanced end-to-end tracking .

Final delivery for GXG® is made by FedEx, allowing shippers

to have full shipment visibility . GXG also includes $100 in

USPS insurance coverage .

• What is the delivery standard for GXG?

The delivery standard for GXG is 1-3 days (guaranteed, date-

certain delivery) .


- Retail

The Retail price for GXG is increasing by an average of






The Commercial Base price for GXG is increasing by

an average of 20 .6% per package, which equates to a

decrease in the average price per package of $53 .40 .



per piece .


The Commercial Plus price for GXG is increasing by an





per piece .

• Tracking:

USPS Tracking is FREE for GXG, with no change to this

structure YOY .

PG 13

Comparing Prices: Retail, Commercial Base and Commercial Plus

Commercial Rate Changes Commercial Plus Pricing (CPP) previously provided highly

discounted postage rates to qualified high-volume shippers . For

2016, Commercial Plus Pricing discounts will either be brought

within 3% of Commercial Base rates or eliminated . In addition,

the Postal Service is restructuring Click-N-Ship® to offer only

retail prices . Click-N-Ship will no longer be an authorized

payment method for Priority Mail Express and Priority Mail

Commercial Base Pricing .

The Postal Service’s long-term goal is to eliminate the

Commercial Plus category at some point in 2017 to match

up with the industry standards of publishing only one set of

commercial rate tables . However, since CPP is not going away

completely in 2016, the CPP thresholds are not changing . So

if a shipper qualifies for CPP in 2015, they will remain on CPP .

Deeper discounting may still be made available to customers

through negotiated service agreements, however the USPS will

be determining who qualifies on a case-by-case basis .

All thresholds are based on the annual (calendar year) quantity

of pieces mailed using the listed mail class or combination of

mail classes, with the exception of Priority Mail Express . Priority

Mail Express qualification is based on the quantity of Priority

Mail Express sent in the previous four quarters .

Qualification thresholds for Priority Mail Commercial Plus

Pricing remain unchanged in 2016 . The minimum volume

thresholds are shown below .

Mail Class Type of Packages IncludedQualification

Threshold

Priority Mail

Express

All domestic Priority Mail Express

shipments5,000 pieces

Priority Mail Letters, Flats and Critical Mail 5,000 pieces

Priority Mail

Letters, Flats, Packages (including

Flat Rate), Critical Mail, and Padded

Flat Rate Envelope

50,000 pieces

Priority Mail Cubic 50,000 pieces

International

All First-Class Package International

Service, Priority Mail International,

Priority Mail Express International,

and Global Express Guaranteed

packages/shipments

$100,000 in

postage value

PG 14

USPS Price Tier ComparisonShippers are often curious about what these discount tiers really mean in terms of savings . Below is detail around the savings

between Retail and Commercial Base Pricing, illustrating the benefits for any shipper using an online postage provider like Endicia .

Priority Mail ExpressAverage CBP and CPP

Savings vs. Retail

1-70 lbs ., Zones 1-8 10 .0%

Packages 5 lbs . and under 10 .0%

Priority MailAverage CBP Savings vs.

Retail

Average CPP Savings vs.

Retail

Average CPP Savings vs. CBP

Overall 18 .4% 20 .8% 3 .0%

Packages 5 lbs .

and under16 .6% 19 .1% 3 .0%

Global Express GuaranteedAverage CBP and CPP

Savings vs. Retail

Overall 5 .0%


Priority Mail Express International

Average CBP and CPP Savings vs. Retail

Overall 5 .0%


Priority Mail InternationalCanada and All Other

Average CBP and CPP Savings vs. Retail

Overall 5 .0%


FCPISAverage CBP and CPP

Savings vs. Retail

Overall 5 .0%

Packages 1 lb . and under 5 .0%

PG 15

• Surcharges

SurchargeFedEx UPS

Average $ Increase Average % Increase Average $ Increase Average % Increase

Residential Ground $3 .65 4 .3% $3 .25 4 .8%

Residential Home Delivery $3 .25 4 .8% N/A N/A

Residential Air $3 .65 4 .3% $3 .65 4 .3%

Address Correction $13 .00 4 .0% $13 .00 4 .0%

DAS/EDAS Commercial

Ground/Home$2 .30 4 .5% $2 .30 4 .5%

DAS/EDAS Commercial Air $2 .45 4 .3% $2 .45 4 .3%

DAS Residential Ground $3 .70 4 .2% $3 .10 5 .1%

DAS Residential Home $3 .15 5 .0% N/A N/A

DAS Residential Air $3 .70 4 .2% $3 .80 4 .1%

EDAS Residential

Ground/Home$4 .00 5 .3% $4 .00 5 .3%

EDAS Residential Air $4 .00 5 .3% $4 .00 5 .3%

Private Carrier ComparisonUPS and FedEx will both be raising shipping rates as well as numerous surcharges in 2016 .

Here is a summary of the key product changes:

• Ground and Home Delivery

Weights

FedEx UPS

Average $ Increase

Average % Increase

Average $ Increase

Average % Increase

1-70 lbs . $1 .06 4 .7% $1 .06 4 .7%

1-5 lbs . $0 .51 5 .8% $0 .51 5 .8%

6-10 lbs . $0 .59 5 .5% $0 .59 5 .5%

• 3-Day

Weights

FedEx UPS

Average $ Increase

Average % Increase

Average $ Increase

Average % Increase

1-70 lbs . $6 .13 7 .5% $5 .01 7 .0%

1-5 lbs . $1 .37 7 .5% $1 .23 7 .6%

6-10 lbs . $2 .10 7 .4% $1 .88 7 .5%

• 2-Day

Weights

FedEx UPS

Average $ Increase

Average % Increase

Average $ Increase

Average % Increase

1-70 lbs . $9 .00 7 .5% $10 .13 8 .2%

1-5 lbs . $2 .24 7 .8% $2 .35 8 .1%

6-10 lbs . $3 .34 7 .8% $3 .55 8 .2%

• Next Day

Weights

FedEx UPS

Average $ Increase

Average % Increase

Average $ Increase

Average % Increase

1-70 lbs . $11 .14 6 .3% $12 .91 6 .1%

1-5 lbs . $3 .26 6 .3% $4 .06 6 .3%

6-10 lbs . $4 .79 6 .4% $5 .65 6 .2%

PG 16

Private Carrier Comparison (continued)The following charts compare USPS and private carrier rates .

What’s important to note here is that the fields depicting a percentage are where USPS wins over private carriers .

• Priority Mail vs. Ground/Home Delivery (includes $3.25 Residential surcharges)

USPS SAVINGS: Ground vs. Priority Mail Commercial Base Pricing (includes UPS Ground/FedEx Home Delivery

Residential Surcharge of $3.25)

Weight Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8

1 43 .6% 45 .1% 45 .2% 45 .5% 45 .8% 43 .8% 39 .9%

2 44 .9% 46 .5% 45 .7% 34 .0% 30 .0% 25 .1% 18 .5%

3 44 .8% 40 .1% 35 .4% 24 .6% 14 .0% 9 .3% N/A

4 40 .5% 34 .5% 33 .2% 21 .3% 3 .4% N/A N/A

5 34 .7% 34 .1% 33 .1% 19 .2% N/A N/A N/A

6 35 .0% 34 .6% 33 .3% 14 .4% N/A N/A N/A

7 36 .7% 35 .5% 31 .0% 9 .7% N/A N/A N/A

8 35 .2% 32 .5% 30 .1% 6 .5% N/A N/A N/A

9 32 .5% 32 .1% 29 .8% 1 .8% N/A N/A N/A

10 31 .5% 30 .8% 29 .6% N/A N/A N/A N/A

11 31 .3% 31 .3% 29 .4% N/A N/A N/A N/A

12 30 .5% 30 .9% 29 .2% N/A N/A N/A N/A

13 30 .1% 30 .4% 29 .1% N/A N/A N/A N/A

14 30 .3% 30 .1% 28 .9% N/A N/A N/A N/A

15 29 .6% 29 .1% 28 .9% N/A N/A N/A N/A

16 26 .4% 26 .0% 26 .3% N/A N/A N/A N/A

17 26 .8% 26 .0% 26 .0% N/A N/A N/A N/A

18 26 .1% 25 .8% 25 .5% N/A N/A N/A N/A

19 25 .5% 24 .3% 23 .1% N/A N/A N/A N/A

20 24 .9% 23 .0% 22 .6% N/A N/A N/A N/A

21 19 .9% 19 .7% 19 .7% N/A N/A N/A N/A

22 11 .2% 11 .8% 11 .8% N/A N/A N/A N/A

23 2 .1% 4 .7% 2 .6% N/A N/A N/A N/A

24 N/A N/A N/A N/A N/A N/A N/A


USPS SAVINGS: Ground vs. Priority Mail Commercial Plus Pricing (includes UPS Ground/FedEx Home Delivery

Residential Surcharge of $3.25)


1 45 .0% 46 .7% 46 .8% 47 .2% 47 .4% 45 .5% 41 .7%

2 46 .6% 48 .1% 47 .4% 36 .0% 32 .1% 27 .3% 20 .9%

3 46 .4% 41 .9% 37 .4% 26 .9% 16 .5% 12 .0% 1 .6%

4 42 .3% 36 .4% 35 .2% 23 .6% 6 .3% N/A N/A

5 36 .7% 36 .1% 35 .1% 21 .6% N/A N/A N/A

6 36 .9% 36 .5% 35 .3% 16 .9% N/A N/A N/A

7 38 .6% 37 .4% 33 .1% 12 .4% N/A N/A N/A

8 37 .2% 34 .6% 32 .2% 9 .3% N/A N/A N/A

9 34 .5% 34 .2% 31 .9% 4 .7% N/A N/A N/A

10 33 .5% 32 .9% 31 .7% 1 .3% N/A N/A N/A

11 33 .4% 33 .4% 31 .6% N/A N/A N/A N/A

12 32 .6% 32 .9% 31 .3% N/A N/A N/A N/A

13 32 .2% 32 .5% 31 .2% N/A N/A N/A N/A

14 32 .3% 32 .2% 31 .0% N/A N/A N/A N/A

15 31 .7% 31 .2% 31 .0% N/A N/A N/A N/A

16 28 .6% 28 .2% 28 .5% N/A N/A N/A N/A

17 29 .0% 28 .2% 28 .2% N/A N/A N/A N/A

18 28 .3% 28 .0% 27 .8% N/A N/A N/A N/A

19 27 .7% 26 .6% 25 .4% N/A N/A N/A N/A

20 27 .2% 25 .3% 24 .9% N/A N/A N/A N/A

21 22 .3% 22 .1% 22 .1% N/A N/A N/A N/A

22 13 .9% 14 .4% 14 .5% N/A N/A N/A N/A

23 5 .0% 7 .6% 5 .5% N/A N/A N/A N/A



PG 17

Private Carrier Comparison (continued)

• Priority Mail vs. UPS 3-Day (includes Residential surcharge of $3.65)

USPS SAVINGS: UPS 3-DAY vs. Priority Mail Commercial Base Pricing

(includes UPS Ground/FedEx Home Delivery Residential Surcharge of $3.65)


1 55 .4% 58 .5% 60 .1% 63 .4% 68 .7% 69 .2% 69 .0%

2 53 .8% 59 .0% 59 .0% 55 .4% 59 .4% 58 .8% 59 .4%

3 56 .8% 54 .5% 52 .8% 51 .1% 53 .9% 52 .1% 51 .3%

4 55 .8% 53 .1% 51 .1% 51 .5% 50 .8% 47 .9% 47 .4%

5 53 .5% 55 .1% 53 .1% 52 .4% 49 .9% 45 .1% 44 .2%

6 54 .5% 57 .5% 56 .5% 52 .7% 47 .8% 43 .0% 41 .1%

7 55 .4% 59 .8% 57 .3% 51 .8% 46 .1% 42 .5% 39 .3%

8 55 .5% 60 .0% 59 .0% 52 .6% 44 .9% 41 .2% 37 .0%

9 54 .8% 60 .6% 60 .8% 52 .3% 43 .8% 39 .8% 34 .6%

10 55 .2% 60 .7% 61 .7% 52 .1% 42 .0% 38 .2% 33 .3%

11 55 .7% 61 .6% 63 .2% 52 .1% 41 .2% 35 .7% 31 .6%

12 56 .4% 62 .7% 64 .2% 52 .0% 39 .5% 33 .7% 30 .6%

13 57 .5% 63 .3% 65 .1% 51 .6% 38 .2% 34 .5% 32 .1%

14 57 .6% 64 .2% 66 .0% 51 .7% 37 .6% 34 .2% 32 .0%

15 58 .8% 63 .3% 66 .9% 51 .6% 38 .3% 35 .7% 33 .8%

16 57 .1% 62 .6% 66 .5% 51 .7% 37 .3% 35 .2% 32 .7%

17 57 .5% 61 .5% 66 .9% 52 .6% 36 .4% 34 .4% 32 .2%

18 58 .0% 61 .6% 67 .0% 53 .3% 35 .2% 34 .0% 31 .0%

19 58 .5% 61 .3% 67 .0% 53 .7% 34 .5% 33 .4% 30 .1%

20 58 .8% 61 .8% 67 .3% 54 .4% 35 .0% 33 .3% 29 .4%

21 56 .5% 60 .9% 65 .2% 52 .6% 35 .7% 35 .0% 30 .6%

22 52 .2% 57 .9% 62 .5% 50 .4% 38 .0% 36 .5% 32 .2%

23 48 .2% 54 .6% 58 .9% 47 .9% 39 .3% 38 .0% 33 .9%

24 44 .2% 49 .1% 52 .7% 43 .9% 40 .0% 38 .4% 34 .5%

25 41 .1% 45 .5% 45 .0% 40 .1% 40 .6% 38 .9% 35 .4%

USPS SAVINGS: UPS 3-DAY vs. Priority Mail Commercial Plus Pricing

(includes UPS Ground/FedEx Home Delivery Residential Surcharge of $3.65)


1 56 .6% 59 .8% 61 .3% 64 .5% 69 .6% 70 .1% 69 .9%

2 55 .1% 60 .2% 60 .2% 56 .8% 60 .6% 60 .1% 60 .6%

3 58 .1% 55 .9% 54 .2% 52 .6% 55 .3% 53 .6% 52 .8%

4 57 .2% 54 .5% 52 .6% 53 .0% 52 .3% 49 .4% 49 .0%

5 54 .9% 56 .5% 54 .5% 53 .8% 51 .4% 46 .7% 45 .9%

6 55 .9% 58 .8% 57 .8% 54 .1% 49 .3% 44 .7% 42 .8%

7 56 .7% 61 .0% 58 .6% 53 .2% 47 .7% 44 .2% 41 .1%

8 56 .9% 61 .2% 60 .2% 54 .0% 46 .5% 43 .0% 38 .9%

9 56 .2% 61 .7% 61 .9% 53 .7% 45 .4% 41 .6% 36 .6%

10 56 .5% 61 .9% 62 .8% 53 .5% 43 .7% 40 .0% 35 .3%

11 57 .0% 62 .8% 64 .3% 53 .5% 43 .0% 37 .6% 33 .6%

12 57 .7% 63 .9% 65 .3% 53 .5% 41 .3% 35 .7% 32 .7%

13 58 .8% 64 .4% 66 .2% 53 .0% 40 .0% 36 .5% 34 .1%

14 58 .9% 65 .3% 67 .1% 53 .1% 39 .4% 36 .2% 34 .0%

15 60 .1% 64 .4% 67 .8% 53 .1% 40 .1% 37 .6% 35 .7%

16 58 .4% 63 .7% 67 .5% 53 .2% 39 .1% 37 .2% 34 .8%

17 58 .8% 62 .7% 67 .9% 54 .0% 38 .3% 36 .3% 34 .2%

18 59 .3% 62 .8% 68 .0% 54 .7% 37 .2% 36 .0% 33 .1%

19 59 .7% 62 .5% 68 .0% 55 .1% 36 .4% 35 .4% 32 .2%

20 60 .0% 62 .9% 68 .3% 55 .8% 36 .9% 35 .3% 31 .6%

21 57 .8% 62 .0% 66 .3% 54 .1% 37 .7% 36 .9% 32 .7%

22 53 .6% 59 .2% 63 .6% 51 .9% 39 .8% 38 .4% 34 .2%

23 49 .8% 56 .0% 60 .1% 49 .5% 41 .1% 39 .8% 35 .9%

24 45 .9% 50 .6% 54 .1% 45 .6% 41 .8% 40 .3% 36 .4%

25 42 .9% 47 .1% 46 .7% 41 .9% 42 .4% 40 .7% 37 .3%

PG 18

Additional changes

Integrated Customs FormIn 2016, Endicia will implement new label layouts for both

domestic and international labels that require an integrated

customs form (e .g . APO/FPO and U .S . Territories) . The changes

come after new guidelines for customs declarations forms were

published by the USPS in March 2015 . The new guidelines

affect any label layouts that feature an integrated customs

form 2976, 2976-A, or 2976-B . Key changes occurring to these

layouts include:

• Picking the customs form type is no longer required.

Your Endicia software will select the correct form type

based on shipment parameters entered.

• Some destinations that previously required a multi-page

customs form now require only one page. More countries

may be added in the future and your Endicia software will

update automatically to remain compliant.

• Date of mailing will be used in place of the round

date stamp.

• The comments section has been removed (please note

that any comments entered will not print on the labels).

• Dimensions will now print on the label.

• New icons have been added for weight, signature, and

acceptance scan requirements.

Endicia is currently submitting new layout designs for labels

that include Forms 2976, 2976-A or 2976-B to the USPS for

approval . The following are strictly mockups of the proposed

label layouts and are not the final label layout versions:

PS Form 2976

PS Form 2976-A

PG 19

USPS InsuranceThere are no changes to USPS regular insurance rates for

2016 . Priority Mail continues to include the first $50 of USPS

insurance for free and Express Mail the first $100 of insurance

for free . New for 2016, the USPS will now offer up to $200 in

merchandise insurance and $100 of document insurance for

Priority Mail International and Priority Mail Express International,

with the exception of Flat Rate Envelopes and Small Flat Rate

Boxes, at no charge .

There are no changes to Endicia Parcel Insurance . This

option is available to Endicia customers subscribed to a

paid service plan or using an integrated partner supporting

Endicia Parcel Insurance .

Package Intercept ServicePackage Intercept Service is used to redirect domestic

shipments that have not yet been delivered or released for

delivery . It is available for packages, letters, and flats with a

tracking or extra services barcode and all mail classes, except

Standard Mail® and Periodicals . Package Intercept Service is

increasing $0 .40 (3 .3%) to $12 .55 .

Adult SignatureRates are changing for both the basic service as well as for

the person-specific service . Adult Signature Required and

Adult Signature Restricted Delivery are available for Express

Mail, Priority Mail, and Parcel Select Ground . Adult Signature

Required is increasing by $0 .20 (3 .6%) to $5 .70 . Adult Signature

Restricted Delivery is increasing by $0 .20 (3 .5%) to $5 .95 .

PG 20

Endicia and USPS: The Right Choice for Your Package ShipmentsNo Hidden Fees—Private carriers regularly tack on

surcharges for residential, Saturday and rural deliveries,

address validation and so much more. It’s all included at no

extra cost with the USPS. The cost you see in the Endicia

software is the price you pay.

APO/FPO, PO Box Delivery—USPS is the only carrier that

can deliver to military and diplomatic addresses, as well

as PO Boxes. Endicia software makes sending packages

to APO/FPO addresses easy with integrated shipping and

customs forms.

Delivery 365 days/year—USPS is the only carrier that

delivers every day of the year to residential addresses,

mailboxes, mail slots and PO Boxes. The Endicia software

is also available at any time so you can easily ship out your

packages whenever it is convenient for you.

Tracking—With the introduction of the Intelligent Mail

Barcode (IMpb) the USPS typically has over 10 scan events

per package. Endicia supports IMpb and offers online

tracking, making it easy to keep an eye on packages.

Flat Rate Options (domestic and international)—Priority

Mail flat rate boxes from USPS offer a quick, easy and

convenient way to ship packages, at the most affordable

price. Endicia software can help you choose the package

option that is best for your business.

Negotiated Pricing—USPS and Endicia offer the most

competitive pricing for your packages – don’t be fooled by

private carrier rates that don’t reflect the true price once

hidden surcharges are added.

Why Endicia?• The leader in electronic postage with over $14 billion in

postage printed.

• Close partnership with the USPS to help tailor the best

solution for your business.

• Intuitive, easy-to-use tools to print labels and track

your packages.

• Pay-on-Use Returns™- With Endicia’s Pay-on-Use

Returns you only pay for postage on the return shipping

label if and when it is used.

• Auto-Refund Service™ (ARS) - ARS automates the

process of requesting refunds for unused postage

by identifying potentially unused shipping labels and

submitting a refund request to the U.S. Postal Service on

your behalf.

• Delivery Status Notification™ - With this simple,

centralized way to identify packages, you can receive

automated daily reports on packages with one of three

Delivery Status types: Delivered, Delivery Failure or

Delivery Exception.

• Endicia Global Service™ (EGS) - Endicia Global Service

eliminates many of the pain points associated with

shipping to Latin America, such as customs delays, theft

and costly shipping options. Reach key markets in Latin

America thanks to quicker and more reliable customs

clearance, package tracking and affordable rates.

Visit our January 2016 USPS Price Change page at

www .endicia .com/usps/postage-rate-change/2016

for information and resources .

understanding the january 2016 u.s. postal service … the january 2016 u.s. postal service price...

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