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USPS Price Change: Mailing Services Rates Reduced

The next USPS postage price change goes into effect Sunday, April 10. You may be thinking “Didn’t I just read about a USPS price change?” Yes, USPS changed rates for the shipping services category earlier this year. The good news is this time around, rates will decrease across Market Dominant mail classes, also known as the mailing services category. There are no new features, services, rules or regulations that will go into effect with this price change, and there are no changes to shipping rates or services (Competitive mail classes).

Market Dominant vs. Competitive

Not sure what the difference is between Market Dominant and Competitive mail classes? Market Dominant mail classes are services for which the USPS effectively has a monopoly in the market, whereas Competitive mail classes are the USPS services that are similar to services offered by private carriers such as FedEx and UPS.

Why the rate decrease?

With this price change, the USPS will reduce rates for the mailing services category by removing a 4.3% surcharge increase that was implemented back in January 2014. USPS implemented this temporary surcharge to help account for losses during the U.S. economic downturn that began in 2008. USPS is projected to recoup these losses by April 10, 2016, and with the removal of this surcharge, First-Class Mail rates will decrease.

Here are a few noteworthy rate changes you’ll see. Keep in mind that the information below reflects average changes, so actual costs will vary.

First-Class Mail

First-Class Mail will see an average rate decrease of 4.1 percent, or $0.09 per piece. What does this mean for anyone walking into a Post Office to buy postage? The retail price of a one-ounce (standard) First-Class Mail stamp is will decrease two cents, from $0.49 to $0.47, and the price for each additional ounce will decrease one cent, from $0.22 to $0.21. The price to mail a postcard is decreasing by one cent, from $0.35 to $0.34.

Also worth noting is that anyone using a PC Postage provider such as Endicia will see a price of a one-ounce First Class Mail stamp decrease from $0.485 to $0.465.

Media Mail

Overall, Media Mail prices are decreasing an average of 4 percent, or $0.80 per package.

Library Mail

As a whole, Library Mail prices are decreasing by an average of 4.2 percent, or $0.80 per package.

First-Class Mail International

First-Class Mail International, or FCMI, will see an average decrease of 3.8 percent, or $0.45 per piece. For letters, there will be an average decrease of 3.9 percent, or $0.08 per letter. For flats (large envelopes), there will be an average decrease of 3.8 percent, or $0.53 per flat. Postcards going to any country will decrease by 4.2 percent, or $0.05 per postcard.

USPS Insurance

USPS regular insurance rates are decreasing by an average of 4.6 percent, or $0.24, for coverage value up to $600. For each additional $100 in insurance coverage, rates are decreasing by an average of 3.8 percent or $0.05 per increment.

Signature Confirmation

Signature Confirmation for First-Class Package Service, Standard Post, Priority Mail and Package Services (Media Mail, Library Mail and Bound Printed Matter) will decrease 3.3% versus 2015 (retail) and 4.1 percent (electronic) and will be available for $2.90 (retail) or $2.35 (electronic) per package.

Signature Confirmation Restricted Delivery

Signature Confirmation Restricted Delivery will decrease 3.7 percent versus 2015 retail) and 3.9 percent (electronic) and will be available for $7.85 (retail) or $7.30 (electronic) per package.

Certified Mail

Certified Mail will decrease 4.3 percent and will cost $3.30. Certified Mail Restricted Delivery, Certified Mail Adult Signature Required and Certified Mail Adult Signature Required with Restricted Delivery will all decrease by 4.1 percent and will cost $8.25.

Certificate of Mailing will decrease from $1.35 to $1.30. The cost of a Return Receipt, at time of mailing, will decrease from $2.80 to $2.70 (retail) and from $1.40 to $1.35 (electronic).

Other Changes

The rates for domestic extra services such as Special Handling and Registered Mail are decreasing, as are the rates for international extra services. Learn more about these changes at the USPS website.

About Endicia

Endicia is a leading provider of internet-based postage services that make it easier and more affordable to ship parcels through the U.S. Postal Service®. We know that shipping can be complex and our goal is to simplify your shipping operations so you can focus on doing what you do best. Visit us at www.endicia.com to learn more.

Richard Kao

When it comes to USPS price changes, Richard is Endicia's resident "numbers guru." All those comparison charts on our site - that's Richard. The explanations of shipping or mailing changes to come - Richard again. He brings 10 years of experience to Endicia's marketing team and provides a keen sense of analysis to every project he tackles. Prior to Endicia, Richard used his marketing wits to help startups, mid-sized businesses and Fortune 500 companies grow.

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Richard Kao

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