USPS New Prices and Services for 2013

On October 11, 2012 the U.S. Postal Service^® (USPS^®) announced new prices and services for 2013. These changes will take effect on January 27, 2013 for both Competitive and Market Dominant mail classes. Endicia has created these pages as a resource to help explain the details of these changes and what they mean for your business.

Key highlights of the 2013 USPS price and services announcement:

• First-Class Mail one ounce stamp prices are increasing by one cent to $0.46
• Optional expedited delivery of USPS packaging is available for $2.50
• Parcel Post has been renamed to Standard Post and will ONLY be available at retail locations
• Free Electronic Delivery Confirmation will be available for select packages and mail classes to select international locations
• First-Class Mail International Parcel has been renamed First-Class Package International Service (FCPIS) and joins the Competitive mail class group
• Priority Mail International shipments to Mexico join the “All other countries” pricing group
• Express Mail International Flat Rate Envelope weight limit has been reduced from 20 lbs to 4 lbs
• Express Mail International now includes the first $200 of USPS insurance

2013 USPS Shipping and Mailing Prices - Domestic

USPS Published Pricing Tiers:

Retail Price: the standard counter price for postage at the Post Office™ or other physical retail locations

Commercial Base Price (CBP): the discounted postage price for certain mail classes available to electronic postage users

Commercial Plus Price (CPP): deeply discounted postage prices for certain mail classes available to qualified high-volume shippers Qualification thresholds for Commercial Plus pricing are NOT changing in 2013.

First-Class Package Service (FCPS)

First-Class Package Service Commercial Base pricing is increasing by an average of 3%, or approximately $0.07 per package. The price for the Commercial Plus weight group is increasing by 2%, or $0.08 per package.

Priority Mail

Updated pricing for Priority Mail options:

Commercial Base Pricing:

Regional Rate options:

Rates for Regional Rate boxes are the same for Commercial Base and Commercial Plus customers.

Cubic (Commercial Plus only)

Updated pricing for Priority Cubic Mail:

Express Mail

Updated pricing for Express Mail:

Commercial Base Pricing:

Commercial Plus Pricing:

Parcel Select (Non-presort)

Parcel Select (non-presort) pricing will increase an average of 4.2%, or approximately $1.19 per package. The bulk of the increase affects packages weighing more than 7 lbs. Tracking continues to be free for Parcel Select in 2013.

This Standard Post adjustment clarifies the relationship between Parcel Select and Standard Post, with Parcel Select being more cost effective for nearly all packages weighing less than 27 lbs.

Media Mail

Media Mail prices are increasing an average of 6.3%, or $1.10 per package. The bulk of this increase will be applied to packages weighing more than 8 lbs.

Tracking/Delivery Confirmation can be added to Media Mail at Retail for $0.90 per package, a $0.05 increase over 2012 prices. Shippers can also add Delivery Confirmation to Media Mail using electronic postage, such as through Endicia, for $0.20 per package – a $0.01 increase over 2012.

Standard Post (formerly Parcel Post)

Standard Post is ONLY available at the retail counter. Outside of a small group of USPS Approved Shippers, all Endicia customers will need to use Parcel Select instead of Parcel Post/Standard Post. Beginning January 27, 2013, Standard Post will not appear as an option in the software for these shippers.

Pricing for Standard Post will increase an average of 17.8%, or approximately $2.99 per package, over 2012 prices for Parcel Post. The bulk of the increase affects packages weighing between 6 and 30 lbs.

This adjustment clarifies the relationship between Parcel Select and Standard Post, with Parcel Select being more cost effective for nearly all packages weighing less than 27 lbs.

Library Mail

Library Mail prices are increasing an average of 6.5%, or $1.09 per package. The bulk of this increase will be applied to packages weighing more than 8 lbs.

Shippers can add Tracking/Delivery Confirmation to Library Mail at Retail for $0.90 per package, a $0.05 increase over 2012 prices. Shippers can also add Delivery Confirmation to Library Mail electronically, such as through Endicia, for $0.20 per package – a $0.01 increase over 2012.

First-Class Mail

First-Class Mail prices are increasing on average by 2.7% or $0.06 per piece.

Details for Letters, Postcards and Flats increases are below:

• Letters
  The price of a one-ounce (standard) First-Class Mail stamp is increasing by 2.2% or one cent, from $0.45 to $0.46. The price for additional ounces remains at $0.20 per ounce.
• Postcards
  Postcard rates are increasing by one cent, from $0.33 to $0.34 (a 3.1% increase).
• Flats (large envelopes)
  The Flats category is increasing by an average of 1.1%. Each weight level, from 1 to 14 ounces will see a $0.02 increase to last year’s price.

2013 USPS Shipping and Mailing Prices - International

First-Class Package International Service

First-Class Package International Service (FCPIS) formerly known as First-Class Mail International Parcel (FCMIP) will see dramatic increases in prices in 2013 with the move to Competitive from Market Dominant, so businesses used to shipping with this mail class will notice a more significant impact than those shipping with some of the other mail classes.

While all weights/groups experience a significant raise in rates, the bulk of higher pricing impact will be felt for packages weighing 7 ounces or less.

Updated pricing for First-Class Package International Service:

Tracking/Delivery Confirmation:

NEW for 2013, the USPS will offer Electronic Delivery Confirmation for FREE on FCPIS packages. The USPS is initially launching this service for qualified packages to Canada only and will look to add additional destinations as available, aiming for April 2013.

Priority Mail International

* This is a result of a decrease in price at the 67-70 lb. weight levels, the most expensive rates for this mail class, which skews the overall increase dollar value. However, the vast majority of the increase affects packages weighing 5 lbs. or less, meaning that these packages will see an increase significantly higher than the average for this group.

Priority Mail International Flat Rate options

The key Flat Rate option change for 2013 is that Mexico has been moved from the price group with Canada to the “All Other Countries” group.

Tracking/Delivery Confirmation:

In 2013 the USPS will offer Electronic Delivery Confirmation FREE on Priority Mail International Flat Rate Envelopes and Small Flat Rate Boxes, package types that were ineligible for international tracking in 2012. The USPS is initially launching this service for qualified packages to Canada only and will look to add additional destinations as available. All other Priority Mail International packages will continue to include free tracking.

For more detailed pricing information visit pe.usps.gov

Express Mail International

* This is a result of a decrease in price for higher weights (more expensive) skewing the overall dollar value. The vast majority of the increase affects packages weighing 7 lbs. or less, meaning that these packages will see an increase significantly higher than the average for this group.

Express Mail International Flat Rate options

Key changes for 2013: the maximum weight for the Express Mail International Flat Rate Envelopes is reduced from 20 lbs. to 4 lbs and Mexico has been moved from the price group with Canada to the “All Other Countries” group.

Insurance

In 2013 the first $200 of USPS insurance coverage is included in the price. Previously only the first $100 of USPS insurance coverage was included.

Global Express Guaranteed (GXG)

First-Class Mail International (FCMI)

Updated pricing for FCMI Letters, Postcards and Flats (large envelopes):

• Letters
  The price of a one-ounce (standard) First-Class Mail International stamp is increasing by 9.5% or eleven cents, from $0.xx to $0.xx.
• Postcards
  Postcard rates are increasing by one cent, from $0.33 to $0.34 (a 3.1% increase).
• Flats (large envelopes)
  The Flats category is increasing by an average of 1.1%. Each weight level, from 1 to 14 ounces will see a $0.02 increase to last year’s price.

2013 USPS Shipping and Mailing Prices – Services

USPS Insurance

Overall, USPS regular insurance rates are increasing by an average of 4.9%. USPS insurance rates for Express Mail are also changing, with the first $100 continuing to be free, but the remaining levels of Express Mail insurance increasing an average of 9.5%.

USPS insurance is also being adjusted for Express Mail International, with the first $200 being free versus only the first $100 free in 2012. Rates for international USPS insurance are not increasing at this time.

USPS Regular Insurance

Express Mail Insurance

Express Mail International now includes the first $200 of insurance. Previously only the first $100 was included.

Signature Confirmation

Overall, Signature Confirmation prices are increasing by an average of 5.2%. Rates are changing for both Retail and Electronic purchases, as well as for both Adult Signature options. Pricing for all categories is detailed below.