For the first time ever, the U.S. Postal Service is offering volume related or other price incentives for Express Mail, Priority Mail and other shipping services, effective May 12. These incentives are now possible as a result from a change in federal law*, enabling the Postal Service to better compete in the shipping market.
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 example:
- Express Mail, premium overnight delivery, is switching to an industry standard, zone-based pricing system, resulting in lower prices for closer destinations. Customers will enjoy a 3 percent price reduction by purchasing Express Mail online or through corporate accounts. Up to an additional 7 percent price reduction is available for those who meet quarterly volume minimums.
- Priority Mail, expedited delivery at economical prices, will be available at an average 3.5 percent savings to customers who use electronic postage or meet other requirements.
- Parcel Select, the Postal Service last mile advantage of delivery to every door, will feature pricing and volume incentives for large- and medium-sized shippers.
- Parcel Return Service, an easy and convenient way for customers to return items to businesses, will move entirely to a weight-based pricing system, resulting in significant price reductions for lighter packages.
These innovative published pricing incentives will make our products more attractive to all shippers, especially small businesses, said Postmaster General John Potter. Were pricing our products to sell in todays competitive shipping market. In the near future, the Postal Service plans to explore contract pricing for larger customers similar to others in the market.