On May 12, the U.S. Postal Service will update its shipping and mailing rates May 12. Some customers, including many businesses, will catch a break, while others will face some price increases as the Postal Service tries to compete with companies such as FedEx and UPS.
For the first time the Postal Service is offering commercial volume and contract prices, as well as online discounts for shipping.
“Our customers think it’s a good thing, and so do we,” said Matt Broder, spokesman with Pitney Bowes.
Overnight shipping with express mail will now be priced based on the zone it is being mailed to, which will bring down the price for closer zones. Using the Postal Service’s online service, approved USPS shipping sites or using corporate accounts will result in a 3 percent price reduction for express mail, and a 3.5 percent reduction for priority mail. Shipping in bulk can save up to an additional 7 percent for express mail.
In the metro area, publishers, associations, and law firms are significant users of priority mail, said Steve Rifai, director of marketing for Endicia, one of the USPS-approved online shipping web companies.
But overall, between commercial and retail rates, prices for express mail will increase 3.1 percent, priority mail will rise 4 percent, parcel select will jump 5.7 percent and parcel return service 2 percent, according to the Postal Regulatory Commission. International rates will also increase, with express mail prices rising 6 percent and priority mail prices 6.1 percent.
Aside from the changes to shipping rates, charges for first-class mail are also increasing. First-class mail, including postcards and letters, will increase in price by a penny, as stamps climb from 41 cents to 42 cents.
Bulk, or standard mail prices are also going up, which willhurt direct marketing firms, said Jerry Cerasale, senior vice president of government affairs for the Direct Marketing Association. But Pitney Bowes, which auto presorts bulk mail for companies, doesn’t expect a dramatic decrease in business. Presorting the mail can save customers about 30 percent rather than going directly through the Postal Service, said Broder.
