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As an e-commerce business owner, it is crucial to know where your expenses are coming from and how they affect your business’s operations. One of these expenses that may affect your day-to-day are shipping expenses. These shipping expenses can add up quickly if you’re shipping large quantities of product or shipping internationally. As of January 27, 2019, the United States Postal Service, in conjunction with the Postal Regulatory Commission (PRC), has put in place a number of shipping rate price changes. These price changes reflect current market conditions and aim to keep the Postal Service competitive by providing the agency with additional revenue. Although most changes are dependent on the parcel you are planning to ship, overall mailing service product prices, in general, have increased by approximately 2.5 percent. In this blog post, we explore USPS shipping rates for small businesses and how they may affect you.

2019 USPS Rate Change Summary

Below, we’ve listed the most prominent changes to USPS’ shipping rates that may affect your e-commerce business. For more information about USPS price changes, visit USPS’ updated price sheet here.

 

  • First class letter price increased from 50 cents to 55 cents, the largest increase since 1991.
  • Single-piece additional ounce packages are now reduced from 21 cents to 15 cents.
  • Priority rates have increased by 5.9%.
  • Priority Mail Express have increased by 3.9%.
  • First Class Package rates are now calculated by zone in order to improve value based on distance.
  • USPS Priority Mail Commercial Plus Pricing has merged with USPS Priority Mail Base Pricing.

First Class Mail Price Index

First Class mail packages for commercial use is often used for lightweight expedited packages. These prices have seen the most significant changes to the average person with letters increasing in price by 5 cents per letter.

Retail Pricing for Priority Mail Flat Rate Price Index

Priority mail shipping, one of the most popular options for e-commerce sites, offers a flat rate options for any package weighing less than 70 lbs. These are the most significant USPS shipping rates for small businesses. Priority mail flat rate makes shipping easy and allows for 1-3 day shipping for your parcel.

Commercial Price Index

Commercial plus pricing, now called commercial pricing, can offer significant discounts to package shipments within the U.S. These discounts can be obtained through XPS Ship, but typically require a minimum shipment quota and will likely be used for larger commercial businesses.

What Does this Mean for My Business?

Depending on the industry your business resides in and the USPS software you use, these price changes can either have significant or minimal effects on your day-to-day operations and costs. If your business frequently ships products within certain zones, you may find that your costs will increase drastically. In previous years, USPS allowed first-class shipping prices to be determined on weight alone. With the implementation of dynamic pricing changes, shipping rates are now calculated by weight and zone (distance from the shipper), meaning the further the zone, the higher your shipping cost will be.

USPS Shipping Partners

XPSship offers USPS software that can save you time and money. As a USPS shipping partner we’re experts in current shipping prices and alternative options at any given time. We make it easy to compare shipping rates from all major shipping companies. If you’re a small business looking to expedite your product fulfillment process, check out our seamless, easy-to-use software to make your shipping efficient and hassle-free. Experience our innovative USPS software by signing up for a free demo here!