Tag: USA

For the first time ever, the U.S. Postal Service is offering discounts based on volume, as well as other incentives including online discounts, for Express Mail, Priority Mail and other shipping services, effective May 12, according to the USPS. These rate changes are now possible due to a change in federal law, enabling the Postal Service to better compete in the shipping market, said Steve Rifai, director of marketing for Endicia, an Internet postage service and an approved licensed vendor of the USPS.

“Before, you could negotiate rates, say, with FedEx, but you couldn’t with the post office because the rates were set by its over-site committee,” said Rifai. “Now with the new law, the post office can act as a competitive organization, so it has much more flexibility in setting prices.”

With the new rates going into effect May 12, the good news for e-tailers is that the post office is offering discounts for those who use online shipping tools.

Postal service shipping products are currently priced by a “one price fits all” approach — customers pay the same price per piece regardless of the number of packages sent or the method of payment. Beginning May 12, customers will be able to take advantage of commercial volume pricing, minimum volume rebates, online price breaks and other pricing incentives.

For overseas shipping, Rifai said there are additional discounts for e-tailers using online methods. Merchants will get an eight-percent online discount on Express Mail International, a five-percent online discount for Priority Mail International and a 10-percent reduction on Global Express Guaranteed.