USPS New Prices and Services for 2014

Each year – at least once per year – the U.S. Postal Service^® (USPS^®) changes rates across their various mail classes and extra services. These price changes will take effect for both Competitive and Market Dominant mail classes on January 26, 2014. Endicia has created these pages as a resource to help explain the details of these changes and what they mean for your business.

Key highlights of the 2014 USPS price and services announcement:

• New $0.01 discount for First-Class Mail Letters (up to 3.5 oz.) when PC Postage or Meters are used
• Reduced minimum volume requirement for Priority Mail high volume discounts (CPP and CPP Cubic)
• New Zone 9 created for the Freely Associated States of Micronesia, Marshall Islands, and Palau
• No Commercial price increase for First-Class Package International Service
• Electronic USPS Tracking International Service expanding to additional countries

2014 USPS Shipping and Mailing Prices - Domestic

USPS Published Pricing Tiers:

Retail Price: Retail pricing refers to the standard counter price for postage at the Post Office™ or other physical retail locations.

Commercial Base Price (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 enjoy this price for applicable Competitive mail classes.

Commercial Plus Price (CPP): Commercial Plus pricing refers to deeply discounted postage prices for certain mail classes available to qualified high-volume shippers. Endicia customers that qualify for these discounts automatically receive them through their software or application.

Qualification thresholds for Priority Mail Commercial Plus pricing are being reduced in 2014.

First-Class Package Service (FCPS)

Commercial Base:
FCPS Commercial Base pricing is increasing by an average of 5.0%, which equates to approximately $0.10 more per package.

Commercial Plus:
Commercial Plus pricing kicks in for weights between 13 oz. and 16 oz. and only apply 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 2014.

Standard Post (formerly Parcel Post)

Standard Post is ONLY available at the retail counter.

There is only one price tier for Standard Post. Standard Post pricing will increase on average by 35.5% in 2014. This increase equates to an average of an additional $12.31 per package. The bulk of the increase affects packages weighing 23 lbs. or more.

Lightweight packages will see much less impact. For those weighing 5 lbs. or less, the rates are actually decreasing by -0.5% on average, or approximately -$0.03 per package. USPS tracking is included free for Standard Post.

Parcel Select (Non-presort)

There is only one price tier for Parcel Select. Parcel Select pricing will increase on average by 41.6%, which equates to approximately $12.89 more per package. However, the bulk of the increase affects packages weighing more than 7 lbs.

Lightweight packages will see much less impact. For those weighing 5 lbs. or less, the increase will be just 3.9% on average, or approximately $0.33 per package. USPS tracking is included free for Parcel Select.

Priority Mail

Outside of pricing, there are three key changes shippers should be aware of with regard to Priority Mail:

• The minimum volume threshold for Priority Mail Commercial Plus and Commercial Plus Cubic pricing is being reduced to 50,000 packages per year from 75,000 and 150,000 respectively in 2014. This is great news for shippers, as it means more businesses may qualify for deep postage discounts using this mail class
• A new Zone 9 has been created for the Freely Associated States of Micronesia, Marshall Islands, and Palau. Note: We’ve called Zone 9 out separately in the tables below to illustrate the positive impact of this change to Zone 8 shippers.
• USPS Tracking is FREE for Priority Mail.

Average overall increase for regular PM shipments:

Priority Mail Commercial Base:

For packages weighing 5 lbs. or less, Commercial Base rates (Zones 1-8) are decreasing an average of -0.6% or -$0.08 per piece.

Priority Mail Commercial Plus:

For packages weighing 5 lbs. or less, Commercial Plus rates (Zones 1-8) are decreasing an average of -0.1% or -$0.01 per piece.

Priority Mail Regional Rate options:

Rates for Regional Rate boxes are the same for Commercial Base and Commercial Plus customers. There is an additional $0.75 per package fee if a Regional Rate box is deposited at Retail.

Cubic (Commercial Plus only)

Priority Mail Cubic is a Commercial Plus mail class, now available to shippers who meet or commit to a volume requirement of 50,000 Cubic-priced pieces in a calendar year.  There are no additions to the Priority Mail Cubic mail class options or package sizes.  Increase information is below:

Priority Mail Express

Outside of pricing, there are two key changes shippers should be aware of with regard to Priority Mail Express (PME):

• The USPS is offering a new 10:30AM delivery option for PME at an additional $5.00.This service is available in select metros. Packages must be handed over to USPS by specific times, which may vary by metro.
• A new Zone 9 has been created for the Freely Associated States of Micronesia, Marshall Islands, and Palau. We’ve called Zone 9 out separately in the tables below to illustrate the positive impact of this change to Zone 8 shippers.
• USPS Tracking is FREE for Express Mail.

Average overall increase for regular Priority Mail Express shipments:

Priority Mail Express Commercial Base:

For packages weighing 5 lbs. or less, Commercial Base rates (Zones 1-8) are increasing an average of +2.7% or +$0.64 per piece.

Priority Mail Express Commercial Plus:

For packages weighing 5 lbs. or less, Commercial Plus rates (Zones 1-8) are decreasing an average of -2.7% or -$0.64 per piece.

Media Mail

Overall, Media Mail prices are increasing an average of 6.8%, which equates to an additional $1.20 per package.

USPS Tracking may be added to Media Mail at Retail for an additional $1.05, up fifteen cents from last year’s price. Shippers may also add USPS Tracking to Media Mail electronically, such as through Endicia, for just $0.23 per package – a $0.03 increase over 2013.

Library Mail

Overall, Library Mail prices are increasing an average of 7.1%, which equates to an additional $1.20 per package.

USPS Tracking may be added to Library Mail at Retail for an additional $1.05, up fifteen cents from last year’s price. Shippers may also add USPS Tracking to Library Mail electronically, such as through Endicia, for just $0.23 per package – a $0.03 increase.

First-Class Mail

As a whole, First-Class Mail prices are increasing by 7.4%, which equates to an average of an additional $0.16 per piece.

Details for Letters, Postcards Flats and Parcels increases are below:

Letters

• The price of a one-ounce (standard) First-Class Mail stamp is increasing by three cents, from $0.46 to $0.49. The price for additional ounces is increasing by one cent to $0.21 per ounce.
  New for 2014: PC Postage users will receive a $0.01 discount when printing postage for 1 to 3.5 oz. letters. The PC Postage rate for a one-ounce First-Class Mail stamp will be $0.48.
• The Retail Letter category is increasing by an overall average of 6.0% or an additional $0.05 per letter.
• The Metered/PC Postage Letter category is increasing by an overall average of 4.6% or an additional $0.04 per letter.

Postcards

• Postcard prices are increasing by one cent, from $0.33 to $0.34, a 3.0% increase.

Flats (large envelopes)

• Overall, the Flats category is increasing by an average of 5.8%. This comes to an average increase per piece of $0.12.

Parcels

• Parcel rates are increasing by an average of 10.7% or an additional $0.29 per package.

Standard Mail

Standard Mail is used for presorted bulk mailings like advertising, newsletters and catalogs. Presorted pricing and rule changes are not covered in this document. USPS Tracking is not available with most Standard Mail, though USPS Tracking can be added to Standard Mail Parcels for an additional $0.23 per piece, up three cents versus last year’s price.

Bound Printed Matter (BPM)

BPM is used for specific presorted, bulk mailings. USPS Tracking may be added to BPM at Retail for an additional $1.05, up fifteen cents from last year’s price. Shippers may also add USPS Tracking to BPM electronically, such as through Endicia, for just $0.23 per package – a $0.03 increase over 2013.

2014 USPS Shipping and Mailing Prices – International

First-Class Package International Service

While prices for this mail class increased dramatically in 2013, shippers will be happy to know there is little to no change in these rates for 2014.

In 2014, the USPS will add the following countries to those that support electronic USPS tracking for this mail class: Estonia, Finland, Gibraltar, Hungary, Italy, Latvia, Lithuania, Luxembourg, Malaysia, Malta, Portugal and Singapore.

Priority Mail International

Priority Mail International (PMI) is a reliable and affordable way to ship non-time sensitive packages up to 70 lbs to international locations. Key changes for Priority Mail International:

• Priority Mail International shippers will now see lower Flat Rate pricing using electronic postage with Commercial Base and Commercial Plus pricing than at the Retail counter
• The maximum weight for packages destined for Mexico has been increased from 44 lbs. to 70 lbs.
• Electronic USPS Tracking for the Small Flat Rate Box and Flat Rate Envelopes is expanding to additional countries (see below)

Average overall increase:

Commercial Base:

• The Commercial Base price for PMI is decreasing by an average of -1.8% per package, which equates to a decrease in the average price per package of -$2.79.
• For packages weighing 5 lbs. or less, Commercial Base rates are decreasing an average of -1.0% or -$0.42 per piece.
• Flat Rate packaging Commercial Base prices are decreasing an average of -2.0% or -$0.79 per package.

Commercial Plus:

• The Commercial Plus price for PMI is decreasing by an average of -2.7% per package, which equates to a decrease in the average price per package of -$3.81.
• For packages weighing 5 lbs. or less, Commercial Plus rates are decreasing an average of -2.0% or -$0.79 per piece.
• Flat Rate packaging Commercial Plus prices are decreasing an average of -2.0% or -$0.79 per package.

Priority Mail International Flat Rate options

PMI offers five Flat Rate options, a standard envelope and a legal envelope (priced the same), as well as small, medium and large boxes. New for 2014, the Retail rates for these options will be priced differently than the lower rates for Commercial Base and Commercial Plus shippers.

Priority Express Mail International

Priority Mail Express International (PMEI) 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.

Key changes for PMEI:

• Priority Mail Express International shippers will now see lower Flat Rate pricing using electronic postage with Commercial Base and Commercial Plus pricing than at the Retail counter
• The maximum weight for packages destined for Mexico has been increased from 44 lbs. to 70 lbs.

Average overall increase:

Commercial Base:

• The Commercial Base price for PMEI is increasing by an average of +0.8% per package, which equates to a decrease in the average price per package of +$0.97.
• For packages weighing 5 lbs. or less, Commercial Base rates are increasing an average of +2.0% or +$1.06 per piece.
• Flat Rate packaging Commercial Base prices are decreasing an average of -4.4% or -$2.30 per package.

Commercial Plus:

• The Commercial Plus price for PMEI is decreasing by an average of -2.0% per package, which equates to a decrease in the average price per package of -$3.56.
• For packages weighing 5 lbs. or less, Commercial Plus rates are decreasing an average of -1.0% or -$0.50 per piece.
• Flat Rate packaging Commercial Plus prices are decreasing an average of -4.4% or -$2.30 per package.

Flat Rate options

EMI offers three Flat Rate options, a standard envelope and a legal envelope (priced the same), as well as a box. New for 2014, the Retail rates for these options will be priced differently than the lower rates for Commercial Base and Commercial Plus shippers.

USPS Tracking (formerly Delivery Confirmation):

USPS Tracking is FREE for EMI.

Global Express Guaranteed (GXG)

GXG 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.

Average overall increase:

Commercial Base:

• The Commercial Base price for GXG is increasing by an average of +2.0% per package, which equates to a decrease in the average price per package of +$5.12.
• For packages weighing 5 lbs. or less, Commercial Base rates are increasing an average of +3.1% or +$2.83 per piece.

Commercial Plus:

• The Commercial Plus price for GXG is decreasing by an average of -1.0% per package, which equates to a decrease in the average price per package of -$2.40.
• For packages weighing 5 lbs. or less, Commercial Plus rates are decreasing an average of -1.0% or -$0.78 per piece.

USPS Tracking (formerly Delivery Confirmation):

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

First-Class Mail International (FCMI)

As a whole, FCMI prices are increasing by 9.7%, which equates to an average additional $1.09 per piece. Most of the impact is in the Flats category.

International Restrictions

The following new international shipping restrictions will be enforced by customs authorities in the listed country. These changes are educational in nature.

• Canada: E-cigarette vendors will need pre-authorization in order to gain customs clearance for e-cig packages
• Venezuela: Now blocking all merchandise (any package eligible for duties and taxes)
• Belarus: Pro-forma invoices must be included in the package for any good bought online
• Laos: No cameras, computers or lithium batteries will clear customs

2014 USPS Shipping and Mailing Prices – Services

USPS Insurance

Overall, USPS regular insurance rates are increasing by an average of 7.7%. Priority Mail continues to include the first $50 of USPS insurance for free. Rates for international insurance are not increasing.

USPS insurance rates for Priority Mail Express are also changing, with the first $100 continuing to be free, but the remaining levels of Priority Mail Express insurance increasing an average of 8.6%.

There are no changes to Endicia Parcel Insurance. This option is available to Endicia customers subscribed to a paid service plan or using an integrated partner supporting Endicia Parcel Insurance.

USPS Regular Insurance

Priority Mail Express Insurance

USPS Tracking (formerly delivery confirmation)

Overall, USPS Tracking prices are increasing by an average of 5.8%. Rates are changing for both Retail and Electronic purchases. Pricing for all mail classes that do not include USPS Tracking for free is detailed below.

• The Retail USPS Tracking price for First-Class Mail Parcels and Package Services (Media Mail, Library Mail and Bound Printed Matter) is increasing $0.15 (16.7%) versus last year and will be available for $1.05 per package
• The Electronic USPS Tracking price for Standard Mail and Package Services is increasing $0.03 (15.0%) versus last year and will be available for $0.23 per package.

Signature Confirmation

Overall, Signature Confirmation prices are increasing by an average of 7.1%. Rates 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 Mail Parcels, Standard Post, Priority Mail and Package Services (Media Mail, Library Mail and Bound Printed Matter) is increasing $0.20 (7.4%) versus last year and will be available for $2.90 per package
• Electronic Signature Confirmation for First-Class Mail Parcels (in certain situations), First-Class Package Service, Priority Mail, Parcel Select and Package Services is increasing $0.15 (6.8%) versus last year and will be available for $2.35 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 $0.25 (5.1%) to $5.20. Adult Signature Restricted Delivery is increasing by $0.30 (5.8%) to $5.45.

Filing USPS Claims

USPS claims may no longer be filed at the Post Office

• File online at www.usps.com/domestic-claims
• File by mail