August 2016 Rate Adjustment to First-Class Mail Parcel
On August 28, 2016, USPS® customers who utilize the retail parcel service will see a small increase in the prices for one-ounce, two-ounce and three-ounce First-Class Mail® parcels. Currently, the rate is $2.45, which will increase to $2.62 in August. The Postal Regulatory Commission authorized the increase to correct an anomaly that developed after the January rate change, which resulted in the price for retail First Class Mail being lower than the commercial First-Class Package Service. The U.S. Postal Service® has assured that the increase will only affect retail pricing and commercial mailing pricing will not be impacted.
USPS Expands Mail Service to Cuba
Thanks to the U.S Postal Service (USPS®), you now have more direct mailing options from the U.S. to Cuba. Following the historical resumption of direct mail service to Cuba in March, the USPS has now expanded its Priority Mail International® (PMI) service to the Caribbean nation. Starting on May 22, 2016, USPS customers will not only be able to send Flat Rate Envelopes and Small Flat Rate Boxes but also single piece parcels, as well as Medium and Large Flat Rate Boxes.
The following standards and characteristics will apply:
- PMI Medium and Large Flat Rate Boxes: 20 lbs.
- PMI Single Piece Parcels: 22 lbs.
- PMI International Small Flat Rate Box and Flat Rate Envelope: 4 lbs.
Maximum Dimension for Parcels:
- Maximum length: 59 inches
- Maximum length + girth (L + 2(W+H)): 108 inches
- Priority Mail International Flat Rate Boxes and Flat Rate Envelope: Price group 8
- Priority Mail International Parcels: Price group 9
- Priority Mail International Small Flat Rate Box and Flat Rate Envelope: PS Form 2976 until August 28, 2016; PS Form 2976-A effective August 28. 2016.
- Priority Mail International Parcels, Medium and Large Flat Rate Box: PS Form 2976-A
Insurance and Indemnity:
- Priority Mail International parcels containing non-negotiable documents will be insured against loss, damage or missing contents up to $100 at no additional charge.
- Parcels containing merchandise are insured against loss, damage, or missing contents up to $200 at no additional charge.
- No additional merchandise insurance will be available for purchase.
- Items containing goods over the limit of $200 may be confiscated upon entering Cuba or returned to sender.
Historic USPS® Price Reduction
Effective April 2016
USPS Rate Decrease: What will Your Business Save?
The U.S. Postal Service® (USPS®) reduced First-Class Mail prices on Sunday, April 10, 2016. Yes, you read that right: the rate change is a reduction for the first time in nearly a century. Regardless of the type of mail or sort levels, you will realize average savings of over 4%.
Why now? The reduction comes with the expiration of legislation that imposed an exigent surcharge for mailing products and services for two years. The goal was to help the USPS manage financial challenges mainly due to the recession and declining First-Class mail volumes. The 4.3% exigent surcharge was reversed after the USPS collected additional funds totaling $4.6 billion.
How the Rate Reductions Stack Up
- Stamp price decreased to 47 cents
- ~4.2% decrease for all First-Class
|First-Class Mail Single-Piece||Prior||April 10 Reduction|
|Letters (1 Oz)||49 cents||47 cents|
|Metered Letter||48.5 cents||46.5 cents|
|Single-Piece Flats||98 cents||94 cents|
|Postcards||35 cents||34 cents|
|Letters Additional Ounces||22 cents||21 cents|
|First-Class Mail International Global Forever Stamp||$1.20||$1.15|
|First-Class Mail Bulk||Prior||April 10 Reduction|
|Mixed AADC Automation Letters||43.9 cents||41.9 cents|
|3-Digit Automation Letters||41.6 cents||39.9|
|5-Digit Automation Letters||39.1 cents||37.6 cents|
|First-Class Mail Presort|
|Letters up to 2 ounces still charged the 1-ounce prices|
|Additional ounce decreased to 12.5 cents|
- ~4.2% decrease for all Standard Mail
|Standard Mail||Prior||April 10 Reduction|
|Letters-5 Digit Auto Entered at Origin||26.6 cents||25.5 cents|
|Flats-5-Digit Auto Flat Entered at Origin||39.2 cents||37.4 cents|
|Carrier Route-Flat Entered at Origin||30 cents||28.8 cents|
|High Density/Saturation Letters-Saturation Letter Entered at Origin||20.2 cents||19.4 cents|
|High Density/Saturation Flats-Saturation Flat Entered At Origin||21.4 cents||20.5 cents|
|EDDM-Retail||18.3 cents||17.6 cents|
|Detached Address Labels (DALs)|
|Price decreased to 3.5 cents|
|Standard Mail – Non-Profit Prices||Prior||April 10 Reduction|
|Letters-5 Digit Auto Entered at Origin||14.7 cents||14 cents|
|Flats-5-Digit Auto Flat Entered at Origin||24.9 cents||23.7 cents|
|Carrier Route-Flat Entered at Origin||22.3 cents||21.4 cents|
|High Density/Saturation Letters-Saturation Letter Entered at Origin||12.5 cents||12.0 cents|
|High Density/Saturation Flats-Saturation Flat Entered at Origin||13.6 cents||13.1 cents|
|Periodicals||CPI Percent Change|
- ~4.2% decrease for all Package Services
- Retain $0.001 IMb barcode discount for BPM Flats
|• Media Mail/Library Mail|
|• Alaska Bypass|
|• Bound Printed Matter|
- Full services IMb incentives remain in place
- ~4.2% decrease for Special Services
|Certificate of Mailing||$1.35||$1.30|
|Registered without Insurance||$12.20||$11.70|
|First-Class Package Svcs Parcels||$0.00||$0.00||$0.00||$0.00|
|Standard Mail Parcels||36 cents||35 cents|
*Note: The cost of sending Certified Mail with Return Receipt will now be $6.47 (compared to $6.74) for a one ounce letter. Consider checking 2-3 day rates with your private carriers to see if they are less money. Or, switch to Electronic Return Receipt which saves $1.35 each.
What does the rollback mean for your business?
Below are estimated savings based on average monthly spend on postal products and services:
|If you spend the following on postage monthly…||…you will save the following annually|
*Note: Consider using your savings to send out higher volumes that can bring in more customers and more sales!
Information & Resources
You’ll find more details, rates and downloadable files at USPS, including: