understanding the may 2015 u.s. postal service price … the may 2015 u.s. 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.

PG 2

ContentsOverview .....................................................................................................................................................................................................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 3

Overview

Brief DescriptionEach 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.

Endicia will update all service offerings with the new prices and

applicable regulations to ensure our customers are compliant

and print postage correctly. We are committed to providing our

customers with all USPS options as soon as they are available,

and we make it a priority to educate our customers and

partners about the changes and how they will be affected.

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

Key Highlights or Changes:Starting Sunday, May 31, 2015, at 12:01am:

• 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.

• USPS Tracking becomes free for Library Mail and Media

Mail and thus USPS Tracking is included for all domestic

mail classes at no additional cost with the exception of

Standard Mail which has a cost of $0.36 per piece.

• 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 4

Background

Market Dominant vs. Competitive

Market Dominant mail classes are services for which the

USPS effectively has a monopoly in the market.

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

Consumer Price Index (CPI).

Competitive mail classes are USPS services that are similar to

services offered by private carriers such as FedEx and UPS.

The presence of marketplace competition increases the USPS’

flexibility when pricing these classes, including the ability to

offer volume or negotiated discounts. There is no maximum rate

cap for any increase in price for these mail classes.

Below is a table of each mail class by category:

Market Dominant Mail Classes

Competitive Mail Classes

First-Class Mail First-Class Package Service

Standard Mail Standard Post

Media Mail Parcel Select

Library Mail Priority Mail

Bound Printed Matter Priority Mail Express

First-Class Mail International

First-Class Package International

Service

Priority Mail International

Priority Mail Express International

Global Express Guaranteed

USPS Pricing TiersThe USPS offers discounted pricing options to certain types of

customers for specific types of mail classes. They are also able

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

counter price for postage purchased at the Post Office™

or other physical retail locations.

• Commercial Base Pricing (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 receive CBP for applicable Competitive

mail classes.

• Commercial Plus Pricing (CPP): Commercial Plus

Pricing refers to deeply discounted postage prices for

certain mail classes available to qualified high-volume

shippers. Endicia customers who qualify for CPP pricing

automatically receive them through their software or

application.

PG 5

Relevant Changes for Competitive Classes – “Shipping”

First-Class Package Service (FCPS)

• Proposed, pending approval: The USPS will move First-

Class Mail Parcel, currently a Market Dominant product, to

the Competitive group. This product will be renamed First-

Class Package Service and become the Retail pricing tier to

complement the existing Commercial Base and Commercial

Plus pricing tiers for FCPS. Endicia customers, unless part

of the USPS Approved Shipper program, will continue to

use the Commercial Base (or Commercial Plus, if qualified)

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

items like product samples or swatches, single t-shirts, or

small stuffed animals.

In order to qualify for the Commercial Plus Pricing tier, a

shipper must have a customer commitment agreement with

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.

• Average overall increase:

- Retail:

FCPS: Retail Pricing

Weight 2015 Price Change vs. 2014

1 oz. $2.54 +$0.22

2 oz. $2.54 +$0.22

3 oz. $2.54 +$0.22

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

9 oz. $3.74 +$0.34

10 oz. $3.94 +$0.36

11 oz. $4.14 +$0.38

12 oz. $4.34 +$0.40

13 oz. $4.54 +$0.42

PG 6

- 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.

-

FCPS: Commercial Base Pricing

Weight 2015 Price Change vs. 2014

1 oz. $2.04 +$0.11

2 oz. $2.04 +$0.11

3 oz. $2.04 +$0.11

4 oz. $2.13 +$0.12

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

Commercial Plus Pricing (CPP):

Commercial Plus Pricing kicks in for weights between 13 oz.

and 16 oz. and only applies 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 2015.

• Tracking:

Tracking is FREE for FCPS.

Standard Post

• 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,

with the real benefit to shippers being that, unlike the private

carriers, the USPS does not add surcharges for things like

fuel, Saturday delivery or rural delivery.

Standard Post is ONLY available at the retail counter.

The comparable mail class available to Endicia customers is

Parcel Select, which features the same delivery time and is

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

service, unless Ground service is required. Ground service is

required when the item being mailed cannot travel by air, as

in the case of hazardous materials.


There is only one price tier for Standard Post. Standard Post

pricing will increase on average by 10.2% versus 2014. This

increase equates to an average of an additional $5.00 per

package.

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 7

Parcel Select (non-presort)


Parcel Select® is geared toward items that don’t require

expedited delivery. It is similar in delivery standard to

Standard Post, but more economical in all cases and is the

USPS Ground delivery option for electronic Postage users.

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.


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.

Lightweight packages will see less of an impact. For those

weighing 5 lbs. or less, the increase will be 7.5% on average,

or approximately $0.70 per package.

• Tracking:

Tracking is FREE for Parcel Select.

Priority Mail (PM)


Priority Mail is an excellent and economical option for

businesses shipping packages to residential addresses

that want quick delivery with free tracking, while remaining

cost-conscious. It offers many options, including regular

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

available to shippers who meet or commit to a volume

requirement of 5,000 CM pieces in a calendar year. CM

offers two package options: Letter and Flat, as well as a

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 8

• Flat Rate and Regional Rate Pricing Tables:

There are no changes to Retail, Commercial Base and

Commercial Plus Pricing tiers.

Priority Mail Flat Rate: Commercial Base Pricing

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

Small Flat Rate Box $5.25 NO CHANGE

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.

Priority Mail Express (PME)


Priority Mail Express is perfect for packages that need to

be delivered very quickly, with overnight delivery to most

locations and second day delivery in outlying areas. Priority

Mail Express includes free tracking and up to $100 of free

USPS insurance coverage.

As with Priority Mail, Priority Mail Express users can leverage

regular zone-based pricing, as well as flat rate envelopes and

flat rate boxes. The Postal Service also offers a variety free

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 9

First-Class Package International Service (FCPIS)


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 time-

sensitive delivery.

• What is the delivery standard for FCPIS?

The delivery standard for FCPIS varies widely by country and

is often dependent on the quality of each country’s local Post.


- 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.

• 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.

PG 10

Priority Mail International (PMI)


Priority Mail International® (PMI) is a reliable and affordable

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

are where rates are increasing the most. Zone 1.7 is

increasing by an average of 18.44% or $17.16 per

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).

PMI Canada: Commercial Base Pricing Examples

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%

• 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.


The Commercial Base price for PMI is increasing by an

average of +3.3% per package, which equates to an

increase in the average price per package of +$3.76.

Flat Rate packaging Commercial Base prices are

increasing an average of +7.3% or +$3.31 per package.


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


PG 11

• Average overall increase (Canada only):

- Retail

The Retail price for PMI to Canada is increasing by an



For Zones 1.1 & 1.2, Retail rates for PMI will be decreasing

by an average of 4.01%, which equates to a decrease in

the average price per package of $7.06. The decreases are

focused primarily on packages 19 lbs. or higher.

ZonesAverage 2015 Change

($)Average 2015 Change

(%)

1.1 & 1.2 -$7.06 -4.01%

1.3 +$6.58 +6.42%

1.4 +$10.50 +10.79%

1.5 +$12.81 +13.57%

1.6 +$13.77 +14.56%

1.7 +$22.41 +21.32%

1.8 +$23.38 +22.41%




The Commercial Base price for PMI is increasing by an



For Zones 1.1 & 1.2, Commercial Base rates for PMI will

be decreasing by an average of 6.29%, which equates

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.



(%)

1.1 & 1.2 -$8.48 -6.29%

1.3 +$3.39 +3.90%

1.4 +$6.79 +8.16%

1.5 +$8.80 +10.87%

1.6 +$9.64 +11.84%

1.7 +$17.16 +18.4%

1.8 +$30.59 +30.95%



- Commercial Plus:

The Commercial Plus price for PMI is increasing by an

average of 6.61% per package, which equates to an

overall increase in the average price per package of

+$4.60.

For Zones 1.1 & 1.2, Commercial Plus rates for PMI will

be decreasing by an average of 8.74%, which equates to

a decrease in the average price per package of $10.28.



(%)

1.1 & 1.2 -$10.28 -8.74%

1.3 +$0.50 +1.16%

1.4 +$3.59 +5.31%

1.5 +$5.42 +7.96%

1.6 +$6.17 +8.91%

1.7 +$13.00 +15.32%

1.8 +$13.77 +16.36%

The decreases are focused primarily on packages up to

5 lbs. and then packages weighing more than 10 lbs.



PG 12


Track and Confirm is FREE for PMI, but NOT available

with Flat Rate Envelopes or Small Flat Rate Box. However,

electronic USPS Delivery Confirmation International is

FREE for these two types of PMI 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.

Priority Mail Express International (PMEI)


Priority Mail Express International 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.

• What is the delivery standard for PMEI?

The delivery standard for PMEI is 3-5 business days (date-

specific delivery available to certain markets)

• Key changes for PMEI:

- PMEI will now be available for Burma, Kiribati, and Sao

Tome and Principe


- Retail

The Retail price for PMEI is increasing by an average of








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.



per piece.


increasing an average of 7.2% or -$3.84 per package.


The Commercial Plus price for PMEI is decreasing by

an average of -3.7% per package, which equates to a


For packages weighing 5 lbs. or less, Commercial Plus


per piece.


decreasing an average of +7.2% or +$3.84 per package.


Track and Confirm is FREE for PMEI.

PG 13

Global Express Guaranteed (GXG)


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, date-

certain delivery)


- Retail

The Retail price for GXG is increasing by an average of






The Commercial Base price for GXG is decreasing by




rates are increasing an average of -0.6% or +$-0.38

per piece.


The Commercial Plus price for GXG is decreasing by



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 is FREE for GXG, with no

change to this structure from 2014.

PG 14

Comparing Prices: Retail, Commercial Base and Commercial Plus

Qualifying for Commercial Plus Pricing (CPP)Commercial Plus Pricing (CPP) provides highly discounted

postage rates to qualified high volume shippers. Customers

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

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.

Mail Class Type of Packages IncludedQualification

Threshold

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.

Tier Comparison

• International and Domestic

(no discounts on any Flat Rate option)

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


Retail


Retail


Overall 12.3% 24.4% 13.8%

Packages: 5 lbs.

and under 8.1% 17.9% 10.8%


(Except Canada)


Retail


Retail


Overall 13.6% 21.5% 9.1%

Packages: 5 lbs.

and under 13.7% 21.6% 9.1%

• Domestic (no discounts on any Flat Rate option)

Priority MailAvg. CBP

Savings vs. Retail


Retail


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 15


(Canada)


Retail


Retail


Overall 11.7% 21.0% 10.5%

Packages: 5 lbs.

and under 12.7% 21.0% 9.5%

FCPISAvg. CBP

Savings vs. Retail


Retail


Overall 10.0% 16.2% 6.9%

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.

Additionally, businesses can use First-Class Mail for

presorted bulk mailings. Presorted pricing and rule changes

are not covered in this document, as they do not impact

Endicia’s core customer base.

First-Class Mail Parcel postage is only available at the retail

counter and details on the changes for this service are not

included in this document. The relevant information for

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.


As a whole, First-Class Mail prices are increasing by 7.4%,

which equates to an average of an additional $0.16 per piece.

- 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

for 1 to 3.5 oz. letters, which is a decrease from a $0.01

discount in 2014. The PC Postage rate for a one-ounce

First-Class Mail stamp will be $0.485.

The Retail Letter category, defined as the rates charged

at the Post Office for First-Class letters up to 3.5oz., is

increasing by an overall average of 1.6% or an additional

$0.01 per letter.

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.

Tier Comparison (continued)

PG 16

- 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.

•

First-Class Mail Letters and Postcards

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

Non-Machinable

Surcharge: Letters $0.22 +$0.01

Postcards $0.35 +$0.01

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.

Media Mail

• 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

books, sound recordings, recorded video tapes, printed

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

are not guaranteed.


Overall, Media Mail prices are increasing an average of 6.2%,

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.


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 17

Bound Printed Matter (BPM)

• What is BPM used for?

BPM is used for presorted mailing of bound materials, such as

catalogs and phone books. Presorted pricing and rule changes

are not covered in this document. However, there are changes

for BPM and those can be found on the USPS website.

• What is the delivery standard for BPM?

BPM is typically delivered in 2-8 days. Delivery times are

not guaranteed.

• Tracking:

Tracking for BPM is now FREE, both for retail and

electronic postage.

First-Class Mail International (FCMI)

• What is FCMI used for?

FCMI is used to send postcards, letters and flats (large

envelopes) internationally that do not require expedited

delivery or tracking information. Items can weigh up to 4

lbs. and must fall with in size and thickness restrictions, the

largest of which is ¾" thick for flats.

• What is the delivery standard for FCMI?

Delivery time varies by destination.


As a whole, FCMI prices are increasing by 4.0%, which

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

- Postcards


1 +4.3% +$0.05

2 +4.3% +$0.05

3-5 +4.3% +$0.05

6-9 +4.3% +$0.05

- Flats (large envelopes)


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 is not available with FCMI.

PG 18

Additional Changes

International Product ChangesPriority Mail Express International® (PMEI) Enhancements

• PMEI will now be supported in Burma (price group 6),

Kiribati (price group 7), and Sao Tome an Principe

(price group 7)

Priority Mail International® (PMI) weight and size update

• PMEI destined to Netherlands (price group 17) will now

allow a maximum of 66 pounds.

USPS InsuranceOverall, USPS regular insurance rates are increasing by an

average of 5.5% up to $200. Rates for insurance coverage from

$200.01-500.00 will decrease an average of 14.3%. Then there

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.

Rates for Priority Mail International insurance are increasing

by an average of 14.3% and rates for Priority Mail Express

International insurance are increasing by an average of 115%.

Do note that the rates for Priority Mail International and Priority

Mail Express International insurance provided by USPS are now

combined into a single table, however we have separated them

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


$200.01-300.00 $5.00 +113% +$2.65

$300.01-400.00 $6.15 +162% +$3.80

$400.01-500.00 $7.30 +211% +$4.95

$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


$0.01-50.00 $1.55 -36.7% -$0.90

$50.01-100.00 $2.70 -25.0% -$0.90

$100.01-200.00 $3.85 -18.9% -$0.90

$200.01-300.00 $5.00 -15.3% -$0.90

$300.01-400.00 $6.15 -12.8% -$0.90

$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

$800.01-900.00 $11.90 -7.0% -$0.90

Per each additional $100 $1.15 NO CHANGE +$0.00

• USPS Priority Mail International Insurance

• USPS Priority Mail Express International Insurance

PG 19

Signature ConfirmationRates 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 Package

Service, Standard Post, Priority Mail and Package

Services (Media Mail, Library Mail and Bound Printed

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

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.

Certified MailCertified Mail™ will increase by 4.5% from $3.30 to $3.45. There

will also be three new options which are all priced at $8.60.

• Certified Mail Restricted Delivery

• Certified Mail Adult Signature Required

• Certified Mail Adult Signature Required

w/Restricted Delivery

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.

PG 20

Endicia and USPS: The Right Choice for Your Package ShipmentsNo Hidden Fees—Private carriers regularly tack on

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.

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.

Why Endicia?• The leader in electronic postage with over $12 Billion in

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.

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.

http://www.endicia.com/usps/postage-rate-change/2015

mailto:sales%40endicia.com?subject=

understanding the may 2015 u.s. postal service price … the may 2015 u.s. postal service price...

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