Understanding the May 2015 US Postal Service Price

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.
Contents
Overview......................................................................................................................................................................................................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 2
Overview
Brief Description
Key Highlights or Changes:
Each year – at least once per year – the U.S. Postal Service®
Starting Sunday, May 31, 2015, at 12:01am:
(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
• 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.
and print postage correctly. We are committed to providing our
• USPS Tracking becomes free for Library Mail and Media
customers with all USPS options as soon as they are available,
Mail and thus USPS Tracking is included for all domestic
and we make it a priority to educate our customers and
mail classes at no additional cost with the exception of
partners about the changes and how they will be affected.
Standard Mail which has a cost of $0.36 per piece.
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
• USPS will require a signature at delivery for all USPS
insured shipments with an insured value of more than
$500, up from $200; Signature Confirmation is included at
no additional fee
Additional Information:
• Priority Mail rates remain unchanged allowing shippers
to can take advantage of the lower rates that went into
effect in September 2014.
• FedEx and UPS implemented dimensional (DIM) weight
rating for all Ground shipments at the beginning of 2015.
This change means that large, lightweight items are
much more costly to ship than they were in 2014. It’s
important to check and see if the lower USPS Priority
Mail rates would be a more economical option.
PG 3
Background
Market Dominant vs. Competitive
USPS Pricing Tiers
Market Dominant mail classes are services for which the
The USPS offers discounted pricing options to certain types of
USPS effectively has a monopoly in the market.
customers for specific types of mail classes. They are also able
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
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
Consumer Price Index (CPI).
counter price for postage purchased at the Post Office™
Competitive mail classes are USPS services that are similar to
or other physical retail locations.
services offered by private carriers such as FedEx and UPS.
•
Commercial Base Pricing (CBP): Commercial
Base Pricing refers to the discounted postage
The presence of marketplace competition increases the USPS’
price for certain mail classes available to electronic
flexibility when pricing these classes, including the ability to
offer volume or negotiated discounts. There is no maximum rate
postage users. The vast majority of Endicia customers
cap for any increase in price for these mail classes.
automatically receive CBP for applicable Competitive
Below is a table of each mail class by category:
mail classes.
•
Commercial Plus Pricing (CPP): Commercial Plus
Market Dominant Mail
Classes
Competitive Mail Classes
First-Class Mail
First-Class Package Service
Standard Mail
Standard Post
automatically receive them through their software or
Media Mail
Parcel Select
application.
Library Mail
Priority Mail
Bound Printed Matter
Priority Mail Express
First-Class Mail International
First-Class Package International
Service
Pricing refers to deeply discounted postage prices for
certain mail classes available to qualified high-volume
shippers. Endicia customers who qualify for CPP pricing
Priority Mail International
Priority Mail Express International
Global Express Guaranteed
PG 4
Relevant Changes for Competitive Classes – “Shipping”
First-Class Package Service (FCPS)
• Proposed, pending approval: The USPS will move First-
• Average overall increase:
-- Retail:
Class Mail Parcel, currently a Market Dominant product, to
the Competitive group. This product will be renamed First-
FCPS: Retail Pricing
Weight
2015 Price
Change vs. 2014
1 oz.
$2.54
+$0.22
Plus pricing tiers for FCPS. Endicia customers, unless part
2 oz.
$2.54
+$0.22
of the USPS Approved Shipper program, will continue to
3 oz.
$2.54
+$0.22
use the Commercial Base (or Commercial Plus, if qualified)
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
items like product samples or swatches, single t-shirts, or
9 oz.
$3.74
+$0.34
small stuffed animals.
10 oz.
$3.94
+$0.36
In order to qualify for the Commercial Plus Pricing tier, a
11 oz.
$4.14
+$0.38
shipper must have a customer commitment agreement with
12 oz.
$4.34
+$0.40
13 oz.
$4.54
+$0.42
Class Package Service and become the Retail pricing tier to
complement the existing Commercial Base and Commercial
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
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.
PG 5
Standard Post
-- 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.
• 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,
FCPS: Commercial Base Pricing
with the real benefit to shippers being that, unlike the private
Weight
2015 Price
Change vs. 2014
1 oz.
$2.04
+$0.11
fuel, Saturday delivery or rural delivery.
2 oz.
$2.04
+$0.11
Standard Post is ONLY available at the retail counter.
3 oz.
$2.04
+$0.11
The comparable mail class available to Endicia customers is
4 oz.
$2.13
+$0.12
Parcel Select, which features the same delivery time and is
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
carriers, the USPS does not add surcharges for things like
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
--
Commercial Plus Pricing (CPP):
service, unless Ground service is required. Ground service is
Commercial Plus Pricing kicks in for weights between 13 oz.
required when the item being mailed cannot travel by air, as
and 16 oz. and only applies to the extended weight options
in the case of hazardous materials.
available to these shippers. Pricing for the standard weight
range of First-Class Package Service is the same as the
Commercial Base tier.
• 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
The price for the Commercial Plus weight group is
increase equates to an average of an additional $5.00 per
not increasing in 2015.
package.
• Tracking:
Tracking is FREE for FCPS.
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 6
Parcel Select (non-presort)
Priority Mail (PM)
• What do shippers use this service for?
• What do shippers use this service for?
Parcel Select is geared toward items that don’t require
Priority Mail is an excellent and economical option for
expedited delivery. It is similar in delivery standard to
businesses shipping packages to residential addresses
Standard Post, but more economical in all cases and is the
that want quick delivery with free tracking, while remaining
USPS Ground delivery option for electronic Postage users.
cost-conscious. It offers many options, including regular
®
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.
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
Lightweight packages will see less of an impact. For those
available to shippers who meet or commit to a volume
weighing 5 lbs. or less, the increase will be 7.5% on average,
requirement of 5,000 CM pieces in a calendar year. CM
or approximately $0.70 per package.
offers two package options: Letter and Flat, as well as a
• Tracking:
Tracking is FREE for Parcel Select.
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 7
• Flat Rate and Regional Rate Pricing Tables:
There are no changes to Retail, Commercial Base and
Commercial Plus Pricing tiers.
Priority Mail Express (PME)
• What do shippers use this service for?
Priority Mail Express is perfect for packages that need to
Priority Mail Flat Rate: Commercial Base Pricing
be delivered very quickly, with overnight delivery to most
locations and second day delivery in outlying areas. Priority
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
regular zone-based pricing, as well as flat rate envelopes and
Small Flat Rate Box
$5.25
NO CHANGE
flat rate boxes. The Postal Service also offers a variety free
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.
Mail Express includes free tracking and up to $100 of free
USPS insurance coverage.
As with Priority Mail, Priority Mail Express users can leverage
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 8
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 timesensitive delivery.
• What is the delivery standard for FCPIS?
• 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.
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 +$0.16 per piece.
PG 9
Priority Mail International (PMI)
PMI Canada: Commercial Base Pricing Examples
• What do shippers use this service for?
Priority Mail International® (PMI) is a reliable and affordable
Origin
Destination
Zone
Average
2015
Change
($)
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%
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
• 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
are where rates are increasing the most. Zone 1.7 is
average of +3.3% per package, which equates to an
increasing by an average of 18.44% or $17.16 per
increase in the average price per package of +$3.76.
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).
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 +$3.31 per package.
PG 10
• Average overall increase (Canada only):
-- Retail
The Retail price for PMI to Canada is increasing by an
Zones
Average 2015 Change Average 2015 Change
($)
(%)
average of +12.15% per package, which equates to an
1.1 & 1.2
-$8.48
-6.29%
increase in the average price per package of +$11.77.
1.3
+$3.39
+3.90%
For Zones 1.1 & 1.2, Retail rates for PMI will be decreasing
1.4
+$6.79
+8.16%
by an average of 4.01%, which equates to a decrease in
1.5
+$8.80
+10.87%
1.6
+$9.64
+11.84%
1.7
+$17.16
+18.4%
1.8
+$30.59
+30.95%
the average price per package of $7.06. The decreases are
focused primarily on packages 19 lbs. or higher.
Zones
Average 2015 Change Average 2015 Change
($)
(%)
1.1 & 1.2
-$7.06
-4.01%
Flat Rate packaging Commercial Base prices are
1.3
+$6.58
+6.42%
increasing an average of +7.00% or +$2.33 per package.
1.4
+$10.50
+10.79%
1.5
+$12.81
+13.57%
The Commercial Plus price for PMI is increasing by an
1.6
+$13.77
+14.56%
average of 6.61% per package, which equates to an
1.7
+$22.41
+21.32%
overall increase in the average price per package of
1.8
+$23.38
+22.41%
-- Commercial Plus:
+$4.60.
For Zones 1.1 & 1.2, Commercial Plus rates for PMI will
Flat Rate packaging Retail prices are increasing an
be decreasing by an average of 8.74%, which equates to
average of +7.0% or +$2.45 per package.
a decrease in the average price per package of $10.28.
-- Commercial Base Pricing:
The Commercial Base price for PMI is increasing by an
Zones
Average 2015 Change Average 2015 Change
($)
(%)
1.1 & 1.2
-$10.28
-8.74%
increase in the average price per package of +$9.70.
1.3
+$0.50
+1.16%
For Zones 1.1 & 1.2, Commercial Base rates for PMI will
1.4
+$3.59
+5.31%
be decreasing by an average of 6.29%, which equates
1.5
+$5.42
+7.96%
1.6
+$6.17
+8.91%
1.7
+$13.00
+15.32%
1.8
+$13.77
+16.36%
average of +11.12% per package, which equates to an
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.
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 11
• Tracking/Delivery Confirmation:
Track and Confirm is FREE for PMI, but NOT available
• Average overall increase:
-- Retail
with Flat Rate Envelopes or Small Flat Rate Box. However,
The Retail price for PMEI is increasing by an average of
electronic USPS Delivery Confirmation International is
+6.1% per package, which equates to an increase in the
FREE for these two types of PMI packages going to select
average price per package of +$10.67.
destinations. The following countries support this service:
Australia, Belgium, Brazil, Canada, Croatia, Denmark,
Estonia, Finland, France, Germany, Gibraltar, Great Britain,
For packages weighing 5 lbs. or less, Retail rates are
increasing an average of +8.19% or +$4.79 per piece.
Hungary, Israel, Italy, Latvia, Lithuania, Luxembourg,
Flat Rate packaging Retail prices are increasing an
Malaysia, Malta, Netherlands, New Zealand, Northern
average of +7.1% or +$4.14 per package.
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
-- 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.
expedited international delivery to most countries, with
For packages weighing 5 lbs. or less, Commercial Base
date-specific service to select major market countries
rates are increasing an average of +8.19% or +$4.79
(i.e. Australia, China, Great Britain, etc.). PMEI includes
per piece.
$200 insurance coverage, free tracking and a money-back
Flat Rate packaging Commercial Base prices are
guarantee in certain countries.
increasing an average of 7.2% or -$3.84 per package.
• What is the delivery standard for PMEI?
-- Commercial Plus Pricing:
The delivery standard for PMEI is 3-5 business days (date-
The Commercial Plus price for PMEI is decreasing by
specific delivery available to certain markets)
an average of -3.7% per package, which equates to a
• Key changes for PMEI:
-- PMEI will now be available for Burma, Kiribati, and Sao
Tome and Principe
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 12
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, datecertain 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 13
Comparing Prices:
Retail, Commercial Base and Commercial Plus
Qualifying for Commercial Plus Pricing (CPP)
Tier Comparison
Commercial Plus Pricing (CPP) provides highly discounted
• International and Domestic
postage rates to qualified high volume shippers. Customers
(no discounts on any Flat Rate option)
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
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%
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.
Qualification
Threshold
Mail Class
Type of Packages Included
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.
• Domestic (no discounts on any Flat Rate option)
Priority Mail
Avg. 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 14
Tier Comparison (continued)
Priority Mail
International
(Canada)
Avg. CBP
Savings vs.
Retail
Avg. CPP
Savings vs.
Retail
Avg. CPP
Savings vs. CBP
FCPIS
Avg. CBP
Savings vs.
Retail
Avg. CPP
Savings vs.
Retail
Avg. CPP
Savings vs. CBP
Overall
11.7%
21.0%
10.5%
Overall
10.0%
16.2%
6.9%
Packages: 5 lbs.
and under
12.7%
21.0%
9.5%
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.
-- 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
Additionally, businesses can use First-Class Mail for
for 1 to 3.5 oz. letters, which is a decrease from a $0.01
presorted bulk mailings. Presorted pricing and rule changes
discount in 2014. The PC Postage rate for a one-ounce
are not covered in this document, as they do not impact
First-Class Mail stamp will be $0.485.
Endicia’s core customer base.
The Retail Letter category, defined as the rates charged
First-Class Mail Parcel postage is only available at the retail
at the Post Office for First-Class letters up to 3.5oz., is
counter and details on the changes for this service are not
increasing by an overall average of 1.6% or an additional
included in this document. The relevant information for
$0.01 per letter.
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.
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.
PG 15
Media Mail
-- 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.
• 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
First-Class Mail Letters and Postcards
books, sound recordings, recorded video tapes, printed
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
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
Non-Machinable
Surcharge: Letters
$0.22
+$0.01
Postcards
$0.35
+$0.01
are not guaranteed.
• Average overall increase:
Overall, Media Mail prices are increasing an average of 6.2%,
• 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.
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 16
Bound Printed Matter (BPM)
First-Class Mail International (FCMI)
• What is BPM used for?
• What is FCMI used for?
BPM is used for presorted mailing of bound materials, such as
FCMI is used to send postcards, letters and flats (large
catalogs and phone books. Presorted pricing and rule changes
envelopes) internationally that do not require expedited
are not covered in this document. However, there are changes
delivery or tracking information. Items can weigh up to 4
for BPM and those can be found on the USPS website.
lbs. and must fall with in size and thickness restrictions, the
• What is the delivery standard for BPM?
BPM is typically delivered in 2-8 days. Delivery times are
not guaranteed.
• Tracking:
largest of which is ¾" thick for flats.
• What is the delivery standard for FCMI?
Delivery time varies by destination.
• Average overall increase:
Tracking for BPM is now FREE, both for retail and
As a whole, FCMI prices are increasing by 4.0%, which
electronic postage.
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
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
-- Postcards
-- 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 17
Additional Changes
• USPS Priority Mail International Insurance
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
Kiribati (price group 7), and Sao Tome an Principe
$100.01-200.00
$3.85
-18.9%
-$0.90
(price group 7)
$200.01-300.00
$5.00
-15.3%
-$0.90
Priority Mail International® (PMI) weight and size update
$300.01-400.00
$6.15
-12.8%
-$0.90
• PMEI destined to Netherlands (price group 17) will now
$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
average of 5.5% up to $200. Rates for insurance coverage from
$800.01-900.00
$11.90
-7.0%
-$0.90
$200.01-500.00 will decrease an average of 14.3%. Then there
Per each additional $100
$1.15
NO CHANGE
+$0.00
International Product Changes
Priority Mail Express International® (PMEI) Enhancements
• PMEI will now be supported in Burma (price group 6),
allow a maximum of 66 pounds.
USPS Insurance
Overall, USPS regular insurance rates are increasing by an
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.
• USPS Priority Mail Express International Insurance
Rates for Priority Mail International insurance are increasing
Coverage Value
2015 Price
% Change
$ Change
by an average of 14.3% and rates for Priority Mail Express
$200.01-300.00
$5.00
+113%
+$2.65
$300.01-400.00
$6.15
+162%
+$3.80
Mail Express International insurance provided by USPS are now
$400.01-500.00
$7.30
+211%
+$4.95
combined into a single table, however we have separated them
$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
International insurance are increasing by an average of 115%.
Do note that the rates for Priority Mail International and Priority
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
PG 18
Signature Confirmation
Certified Mail
Rates are changing for both Retail and Electronic purchases,
Certified Mail™ will increase by 4.5% from $3.30 to $3.45. There
as well as for both Adult Signature options. Pricing for all
will also be three new options which are all priced at $8.60.
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
• Certified Mail Restricted Delivery
• Certified Mail Adult Signature Required
• Certified Mail Adult Signature Required
w/Restricted Delivery
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
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.
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.
PG 19
Endicia and USPS:
The Right Choice for Your
Package Shipments
Why Endicia?
No Hidden Fees—Private carriers regularly tack on
• The leader in electronic postage with over $12 Billion in
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.
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.
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.
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.
PG 20