September 2014 Price Reductions to USPS Priority Mail

USPS Priority Mail ReductionsOn September 7, 2014, the USPS will implement a price change for its popular Priority Mail services. Here’s a look at what to expect.

Priority Mail Post Office rates are going up, but if you purchase postage online, you will actually see a reduction in Priority Mail rates. The price reductions apply to both Commercial Base and Commercial Plus rates.

  • The Commercial Base rate reductions are primarily focused on packages weighing between 5 and 26 pounds and being shipped from Zones 1 to 5.
  • The Commercial Plus rate reductions impact packages weighing between 3 and 40 pounds and traveling from Zones 1 to 5. The average price decrease for Commercial Plus rates will be 2.3 percent.
  • Retail prices will increase by an average of 1.7 percent.

What will the New Online Postage Rates be for Regular Priority Mail?
Online Postage or Commercial Base rates for Regular Priority Mail will see an average price decrease of 0.9 percent. There are no changes in price to packages weighing 4 lbs. or less and 27 lbs. or more. Here’s a summary of the price reductions in the impacted package weights by zone.

Example: A 5 lb. package going to Zone 5 will cost $11.26, starting September 7th, 2014, which is a 9.70% saving from the current shipping rate of $12.47.


Regional Rate Price Updates
Regional Rate Box C will also see a rate reduction for packages traveling from Zones 1 to 5.

Example: A Regional Rate Box C package going to Zone 4 will cost $10.74, starting September 7th, 2014, which is a 54.53% saving from the current shipping rate of $23.62.


The Bottom Line
Whether you roll shipping into your item cost or charge it as a separate cost, these changes could affect your existing pricing structure, so be sure you’ve taken them into account. As always, carefully review your shipping options to ensure that your choice makes the most sense for you and your customers.