understanding the may 2015 u.s. postal service price … the may 2015 u.s. postal service price...
TRANSCRIPT
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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ContentsOverview .....................................................................................................................................................................................................3
Brief Description: .................................................................................................................................................................................3
Key Highlights or Changes: .................................................................................................................................................................3
Additional Information:.........................................................................................................................................................................3
Background .................................................................................................................................................................................................4
Market Dominant vs. Competitive .......................................................................................................................................................4
USPS Pricing Tiers ..............................................................................................................................................................................4
Relevant Changes for Competitive Classes – “Shipping” ..........................................................................................................................5
First-Class Package Service (FCPS) ...................................................................................................................................................5
Standard Post ......................................................................................................................................................................................6
Parcel Select (non-presort) ..................................................................................................................................................................7
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
Tier Comparison ................................................................................................................................................................................14
Relevant Changes for Market Dominant Classes – “Mailing” ..................................................................................................................15
First-Class Mail ..................................................................................................................................................................................15
Standard Mail.....................................................................................................................................................................................16
Media Mail..........................................................................................................................................................................................16
Library Mail ........................................................................................................................................................................................16
Bound Printed Matter (BPM) .............................................................................................................................................................17
First-Class Mail International (FCMI) .................................................................................................................................................17
Additional Changes ...................................................................................................................................................................................18
International Product Changes ..........................................................................................................................................................18
USPS Insurance .................................................................................................................................................................................18
Signature Confirmation ......................................................................................................................................................................19
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.
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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:
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.
Priority Mail Express International (PMEI)
• What do shippers use this service for?
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, etc.). 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:
- PMEI will now be available for Burma, Kiribati, and Sao
Tome and Principe
• Average overall increase:
- Retail
The Retail price for PMEI is increasing by an average of
+6.1% per package, which equates to an increase in the
average price per package of +$10.67.
For packages weighing 5 lbs. or less, Retail rates are
increasing an average of +8.19% or +$4.79 per piece.
Flat Rate packaging Retail prices are increasing an
average of +7.1% or +$4.14 per package.
- Commercial Base Pricing:
The Commercial Base price for PMEI is increasing by
an average of +1.8% per package, which equates to a
decrease in the average price per package of +$1.46.
For packages weighing 5 lbs. or less, Commercial Base
rates are increasing an average of +8.19% or +$4.79
per piece.
Flat Rate packaging Commercial Base prices are
increasing an average of 7.2% or -$3.84 per package.
- Commercial Plus Pricing:
The Commercial Plus price for PMEI is decreasing by
an average of -3.7% per package, which equates to a
decrease in the average price per package of -$7.47.
For packages weighing 5 lbs. or less, Commercial Plus
rates are increasing an average of +5.18% or +$2.47
per piece.
Flat Rate packaging Commercial Plus prices are
decreasing an average of +7.2% or +$3.84 per package.
• Tracking/Delivery Confirmation:
Track and Confirm is FREE for PMEI.
PG 13
Global Express Guaranteed (GXG)
• What do shippers use this service for?
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)
• Average overall increase:
- Retail
The Retail price for GXG is increasing by an average of
+5.5% per package, which equates to an increase in the
average price per package of +$15.03.
For packages weighing 5 lbs. or less, Retail rates are
increasing an average of +7.8% or +$7.23 per piece.
- Commercial Base Pricing:
The Commercial Base price for GXG is decreasing by
an average of -0.9% per package, which equates to a
decrease in the average price per package of -$2.67.
For packages weighing 5 lbs. or less, Commercial Base
rates are increasing an average of -0.6% or +$-0.38
per piece.
- Commercial Plus Pricing:
The Commercial Plus price for GXG is decreasing by
an average of -1.4% per package, which equates to a
decrease in the average price per package of -$3.67.
For packages weighing 5 lbs. or less, Commercial Plus
rates are decreasing an average of -1.0% or -$0.73
per piece.
• Tracking/Delivery Confirmation:
Tracking/Delivery Confirmation is FREE for GXG, with no
change to this structure from 2014.
PG 14
Comparing Prices: Retail, Commercial Base and Commercial Plus
Qualifying for Commercial Plus Pricing (CPP)Commercial Plus Pricing (CPP) provides highly discounted
postage rates to qualified high volume shippers. Customers
can qualify for one or more Commercial Plus Pricing options
by meeting one of the volume thresholds below or by signing a
Customer Commitment Agreement with the USPS.
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 packages sent in the previous four quarters.
Qualification thresholds for Priority Mail Commercial Plus
Pricing remain unchanged in 2015. The minimum volume
thresholds are shown below.
Mail Class Type of Packages IncludedQualification
Threshold
Priority Mail
Express
All domestic Priority Mail Express
shipments 5,000 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
Shippers are often curious about what these discount tiers
really mean in terms of savings. Following is detail around the
savings using each tier, illustrating the benefits for any shipper
using an electronic postage provider, like Endicia, as well as the
benefits high volume shippers can recognize using USPS.
Tier Comparison
• International and Domestic
(no discounts on any Flat Rate option)
Global Express
Guaranteed
Avg. CBP Savings vs.
Retail
Avg. CPP Savings vs.
Retail
Avg. CPP Savings vs. CBP
Overall 16.0% 24.0% 9.5%
Packages: 5 lbs.
and under 16.0% 24.0% 9.5%
Priority Mail Express
International
Avg. CBP Savings vs.
Retail
Avg. CPP Savings vs.
Retail
Avg. CPP Savings vs. CBP
Overall 12.3% 24.4% 13.8%
Packages: 5 lbs.
and under 8.1% 17.9% 10.8%
Priority Mail International
(Except Canada)
Avg. CBP Savings vs.
Retail
Avg. CPP Savings vs.
Retail
Avg. CPP Savings vs. CBP
Overall 13.6% 21.5% 9.1%
Packages: 5 lbs.
and under 13.7% 21.6% 9.1%
• Domestic (no discounts on any Flat Rate option)
Priority MailAvg. CBP
Savings vs. Retail
Avg. CPP Savings vs.
Retail
Avg. CPP Savings vs. CBP
Overall 16.6% 29.5% 15.5%
Flat Rate (ALL) 11.0% 15.3% 4.8%
Packages: 5 lbs.
and under 15.2% 32.4% 20.4%
PG 15
Priority Mail International
(Canada)
Avg. CBP Savings vs.
Retail
Avg. CPP Savings vs.
Retail
Avg. CPP Savings vs. CBP
Overall 11.7% 21.0% 10.5%
Packages: 5 lbs.
and under 12.7% 21.0% 9.5%
FCPISAvg. CBP
Savings vs. Retail
Avg. CPP Savings vs.
Retail
Avg. CPP Savings vs. CBP
Overall 10.0% 16.2% 6.9%
Packages: 1 lb.
and under 10.0% 15.8% 6.5%
Relevant Changes for Market Dominant Classes – “Mailing”
First-Class Mail
• What is First-Class Mail used for?
First-Class Mail® is used to send postcards, letters and flats
(large envelopes) that do not require expedited delivery or
tracking information. Items can weigh up to 13 oz. and must
fall within size and thickness restrictions, the largest of which
is ¾" thick for flats.
Additionally, businesses can use First-Class Mail for
presorted bulk mailings. Presorted pricing and rule changes
are not covered in this document, as they do not impact
Endicia’s core customer base.
First-Class Mail Parcel postage is only available at the retail
counter and details on the changes for this service are not
included in this document. The relevant information for
businesses that want to use First-Class Mail to ship packages
is included in the First-Class Package Service section.
• What is the delivery standard for First-Class Mail?
94% of First-Class Mail is delivered in 3 days or less.
Delivery times are not guaranteed.
• Average overall increase:
As a whole, First-Class Mail prices are increasing by 7.4%,
which equates to an average of an additional $0.16 per piece.
- Letters
The price of a one-ounce (standard) First-Class Mail
stamp remains unchanged at $0.49. The price for
additional ounces is increasing by one cent to $0.22 per
ounce (from $0.21 per ounce in January 2014), as is the
non-machinable surcharge; parcel after 3oz. remains
unchanged at $0.17. New for 2015: PC Postage users
will receive a $0.005 discount when printing postage
for 1 to 3.5 oz. letters, which is a decrease from a $0.01
discount in 2014. The PC Postage rate for a one-ounce
First-Class Mail stamp will be $0.485.
The Retail Letter category, defined as the rates charged
at the Post Office for First-Class letters up to 3.5oz., is
increasing by an overall average of 1.6% or an additional
$0.01 per letter.
The Metered/PC Postage Letter category, defined as
the rates that you can receive through a PC Postage or
Meter company, is increasing by an overall average of
2.3% or an additional $0.02 per letter.
- Postcards
Postcard prices are increasing by one cent, from $0.34
to $0.35, a 2.9% increase.
- Flats (large envelopes)
Overall, the Flats category is increasing by an average of
2.3%. This comes to an average increase per piece of $0.06.
Tier Comparison (continued)
PG 16
- Parcels
Proposed, pending approval: First-Class Mail Parcel will
be renamed to First-Class Package Service (Retail). For
additional changes relating to this product, please see
the First-Class Package Service section.
•
First-Class Mail Letters and Postcards
Piece Type 2015 Price Change vs. 2014
1 oz. Letter: Retail $0.49 NO CHANGE
1 oz. Letter: PC Postage $0.485 +$0.005
Additional Ounce: Letters $0.22 +$0.01
Non-Machinable
Surcharge: Letters $0.22 +$0.01
Postcards $0.35 +$0.01
Tracking:
Tracking is not available with First-Class Mail Letters,
Postcards or Flats. Tracking is available for First-Class Mail
Parcels and is now FREE.
Standard Mail
• What is Standard Mail used for?
Standard Mail® is used for presorted bulk mailings like
advertising, newsletters and catalogs. Presorted pricing and
rule changes are not covered in this document. However,
there are changes for Standard Mail and those can be found
on the USPS website.
• What is the delivery standard for Standard Mail?
Standard Mail is delivered in 3-10 days. Delivery times are
not guaranteed.
• Tracking:
Tracking is not available with most Standard Mail, though
Tracking can be added to Standard Mail Parcels for an
additional $0.36 per piece, an increase of thirteen cents
versus last year’s price.
Media Mail
• What is Media Mail used for?
Media Mail is a service used specifically to send educational
material. There are restrictions on the type of products or
materials that may be shipped using Media Mail, including
a restriction on sending video games. Contents may include
books, sound recordings, recorded video tapes, printed
music, or recorded computer-readable media such as CDs,
DVDs, and diskettes. Media Mail cannot include advertising
of any kind, except for incidental book announcements.
• What is the delivery standard for Media Mail?
Media Mail is typically delivered in 2-8 days. Delivery times
are not guaranteed.
• Average overall increase:
Overall, Media Mail prices are increasing an average of 6.2%,
which equates to an additional $1.30 per package.
• Tracking:
Tracking for Media Mail is now FREE, both for retail
and electronic postage.
Library Mail
• What is Library Mail used for?
Library Mail is used specifically for sending items between
qualified organizations. Contents can include items on loan
from, or mailed between, academic institutions, public
libraries, museums and other qualified institutions. Library
Mail shipments are restricted to books, sound recordings,
academic theses, and certain other approved items.
• What is the delivery standard for Library Mail?
Library Mail will be delivered in 2-8 days. Delivery times are
not guaranteed.
• Average overall increase:
Overall, Library Mail prices are increasing an average of
7.1%, which equates to an additional $1.20 per package.
• Tracking:
Tracking for Library Mail is now FREE, both for retail
and electronically.
PG 17
Bound Printed Matter (BPM)
• What is BPM used for?
BPM is used for presorted mailing of bound materials, such as
catalogs and phone books. Presorted pricing and rule changes
are not covered in this document. However, there are changes
for BPM and those can be found on the USPS website.
• What is the delivery standard for BPM?
BPM is typically delivered in 2-8 days. Delivery times are
not guaranteed.
• Tracking:
Tracking for BPM is now FREE, both for retail and
electronic postage.
First-Class Mail International (FCMI)
• What is FCMI used for?
FCMI is used to send postcards, letters and flats (large
envelopes) internationally that do not require expedited
delivery or tracking information. Items can weigh up to 4
lbs. and must fall with in size and thickness restrictions, the
largest of which is ¾" thick for flats.
• What is the delivery standard for FCMI?
Delivery time varies by destination.
• Average overall increase:
As a whole, FCMI prices are increasing by 4.0%, which
equates to an average additional $0.45 per piece.
- Letters
Country Group Average % Change Average $ Change
1 +4.2% +$0.05
2 +4.2% +$0.07
3-5 +4.1% +$0.08
6-9 +4.2% +$0.08
- Postcards
Country Group Average % Change Average $ Change
1 +4.3% +$0.05
2 +4.3% +$0.05
3-5 +4.3% +$0.05
6-9 +4.3% +$0.05
- Flats (large envelopes)
Country Group Average % Change Average $ Change
1 +3.9% +$0.33
2 +3.9% +$0.52
3-5 +3.9% +$0.65
6-9 +3.9% +$0.63
• Tracking/Delivery Confirmation:
Tracking/Delivery Confirmation is not available with FCMI.
PG 18
Additional Changes
International Product ChangesPriority Mail Express International® (PMEI) Enhancements
• PMEI will now be supported in Burma (price group 6),
Kiribati (price group 7), and Sao Tome an Principe
(price group 7)
Priority Mail International® (PMI) weight and size update
• PMEI destined to Netherlands (price group 17) will now
allow a maximum of 66 pounds.
USPS InsuranceOverall, USPS regular insurance rates are increasing by an
average of 5.5% up to $200. Rates for insurance coverage from
$200.01-500.00 will decrease an average of 14.3%. Then there
will be a subsequent increase of 2.4% that gradually increases
as the coverage value increases. Priority Mail continues to
include the first $50 of USPS insurance at no charge.
Rates for Priority Mail International insurance are increasing
by an average of 14.3% and rates for Priority Mail Express
International insurance are increasing by an average of 115%.
Do note that the rates for Priority Mail International and Priority
Mail Express International insurance provided by USPS are now
combined into a single table, however we have separated them
below to better illustrate the rate changes. Rates for Priority
Mail Express Insurance remain unchanged.
• USPS Regular Insurance
Coverage Value 2015 Price % Change $ Change
$0.01-50.00 $2.20 +4.6% +$0.10
$50.01-100.00 $2.70 +5.8% +$0.15
$100.01-200.00 $3.50 +6.1% +$0.20
$200.01-300.00 $4.60 -16.4% -$0.90
$300.01-400.00 $5.80 -14.1% -$0.95
$400.01-500.00 $7.00 -12.5% -$1.00
$500.01-600.00 $9.45 +2.2% +$0.20
Per each additional $100 $1.30 +4.0% +$0.05
Coverage Value 2015 Price % Change $ Change
$200.01-300.00 $5.00 +113% +$2.65
$300.01-400.00 $6.15 +162% +$3.80
$400.01-500.00 $7.30 +211% +$4.95
$500.01-600.00 $8.45 +119% +$4.60
$600.01-700.00 $9.60 +149% +$5.75
$800.01-900.00 $10.75 +179% +$6.90
$900.01-1000 $11.90 +209% +$8.05
$1000.01-1500 $13.05 +144% +$7.70
$1500.01-2000 $14.20 +107% +$7.35
$2000.01-2500 $15.35 +84% +$7.00
$2500.01-3000 $16.50 +68% +$6.65
$3000.01-3500 $17.65 +56% +$6.30
$3500.01-4000 $18.80 +46% +$5.95
$4000.01-4500 $19.95 +39% +$5.60
$4500.01-5000 $21.10 +33% +$5.25
Per each additional $100 $1.15 NO CHANGE +$0.00
Coverage Value 2015 Price % Change $ Change
$0.01-50.00 $1.55 -36.7% -$0.90
$50.01-100.00 $2.70 -25.0% -$0.90
$100.01-200.00 $3.85 -18.9% -$0.90
$200.01-300.00 $5.00 -15.3% -$0.90
$300.01-400.00 $6.15 -12.8% -$0.90
$400.01-500.00 $7.30 -11.0% -$0.90
$500.01-600.00 $8.45 -9.6% -$0.90
$600.01-700.00 $9.60 -8.6% -$0.90
$700.01-800.00 $10.75 -7.7% -$0.90
$800.01-900.00 $11.90 -7.0% -$0.90
Per each additional $100 $1.15 NO CHANGE +$0.00
• USPS Priority Mail International Insurance
• USPS Priority Mail Express International Insurance
PG 19
Signature ConfirmationRates are changing for both Retail and Electronic purchases,
as well as for both Adult Signature options. Pricing for all
categories is detailed below.
• Retail Signature Confirmation™ for First-Class Package
Service, Standard Post, Priority Mail and Package
Services (Media Mail, Library Mail and Bound Printed
Matter) is increasing $0.10 (3.5%) versus 2014 and will be
available for $3.00 per package
• Electronic Signature Confirmation for First-Class
Package Service, Priority Mail, Parcel Select and
Package Services is increasing $0.10 (4.3%) versus last
year and will be available for $2.45 per package.
• Adult Signature Required and Adult Signature Restricted
Delivery are available for Priority Mail Express, Priority
Mail, Critical Mail and Parcel Select. Adult Signature
Required is increasing by $0.30 (5.8%) to $5.50. Adult
Signature Restricted Delivery is increasing by $0.30
(5.5%) to $5.75.
Certified MailCertified Mail™ will increase by 4.5% from $3.30 to $3.45. There
will also be three new options which are all priced at $8.60.
• Certified Mail Restricted Delivery
• Certified Mail Adult Signature Required
• Certified Mail Adult Signature Required
w/Restricted Delivery
Certificate of mailing will increase from $1.30 to $1.35. The cost
of a Return Receipt, at time of mailing, would increase from
$2.70 to $2.80 Retail; $1.35 to $1.40 Electronic.
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 print shipping
labels for your packages whenever it is convenient for you.
Speedy Delivery—Get packages from San Francisco to
New York in 2 days with Priority Mail vs 5-6 days via private
carriers (and at lower prices for certain weights).
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 charges are included.
Why Endicia?• The leader in electronic postage with over $12 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. Endicia is the only electronic
Postage provider to offer this money saving service. With
Endicia’s Pay-on-Use Returns you only pay for postage
on the return shipping label if and when it is scanned in
the mail stream.
• 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.
For more information on how you can save go to
www.endicia.com/usps/postage-rate-change/2015 for
more details or contact an Endicia Sales Rep today
([email protected] or 800-576-3279, x140) to learn more about
how Endicia can help you save time and money.