SmallBusinessNewz

Post Office looks to compete on package shipping

Grab some Forever Stamps this week, as the price goes from 41 to 42 cents in a week. However, small businesses may see some benefit from other rate adjustments.

On May 12th, the US Postal Service intends to raise first class postage by a penny. Mailing a payment for the electric or water bill gets a little more expensive, but the Post Office provided a little good news our small business audience may appreciate.

While that first-class rate increase may drive some more sales of the currently 41-cent Forever Stamp, which will be honored by the Post Office after the price change, other rates look more competitive. They plan to have 5 billion Forever Stamps available prior to the rate change.

The Postal Service announced updates to rates for shipping services like Express Mail, Priority Mail, Parcel Select, Parcel Return Service, and International Mail.

"For the first time our pricing includes commercial volume and contract prices, rebates, online price reductions, and other new incentives," the Postal Service said. Small business owners will want to note these highlights disclosed by the announcement:

• Express Mail is switching to a zone-based pricing system, resulting in customers paying less for nearby destinations. Customers will receive a 3 percent price reduction by purchasing Express Mail online or through corporate accounts. Additional price reductions are available for those who ship quarterly minimums.
• Priority Mail will have an average 3.5 percent savings for customers who use electronic postage or meet other requirements.
• Parcel Select - our "last mile" delivery to every door - will feature pricing and volume incentives for large- and medium-size shippers.
• Parcel Return Service will move entirely to a weight based pricing system, resulting in significant price reductions for many lighter packages.

"We’re pricing our products to sell in today’s competitive shipping market," said Postmaster General John Potter in the announcement.