Understanding the April 2016
U.S. Postal Service Price Change
Each year – at least once per year – the U.S. Postal Service® (USPS®) changes rates
across their various mail classes and extra services. Often concurrent with these rate
changes, the USPS may introduce or eliminate products, such as a Flat Rate Box, or
regulations, such as presorted mail requirements. These events are referred to as the
USPS Price Change. On April 10, 2016 there will be a price change for the mailing
services category.
Contents
Overview
Brief Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Key Highlights or Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Background
Market Dominant vs. Competitive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
USPS Pricing Tiers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Relevant Changes for Market Dominant Classes – “Mailing”
First-Class Mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Standard Mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Media Mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Library Mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Bound Printed Matter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
First-Class Mail International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Additional Changes
USPS Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Signature Confirmation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Certified Mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Other Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
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Overview
Brief Description
Key Highlights or Changes:
Each year – at least once per year – the U.S. Postal Service
Starting at 12:01 a.m. Sunday, April 10, 2016:
(USPS) changes rates across their various mail classes and
extra services. Often concurrent with these rate changes, the
USPS may introduce or eliminate products, such as a Flat Rate
Box, or new regulations, such as presorted mail requirements.
These events are referred to as USPS Price Changes. On April
10, 2016 there will be a price change and rates will decrease
across Market Dominant mail classes (mailing services
category), with no changes to product features or regulations.
Other mail classes remain unchanged.
• The average rate decreases for USPS products include:
-- First-Class Mail® decreasing by 4.1%
-- First-Class Mail International® decreasing by 3.8%
-- Media Mail® decreasing by 4.0%
-- Library Mail decreasing by 4.2%
-- Certified Mail® decreasing by 4.3%
• Rates will decrease for certain domestic and international
extra services
Endicia will update all service offerings with the new prices and
applicable regulations to ensure our customers are compliant
There are no new features, services, rules or regulations that
and print postage correctly. We are committed to providing our
will go into effect with the April 10, 2016. For information on
customers with all USPS options as soon as they are available,
recent changes to shipping mail classes, visit the January 2016
and we make it a priority to educate our customers and
USPS Price Change page.
partners about the changes and how they will be affected.
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Background
Market Dominant vs. Competitive
Market Dominant mail classes are services for which the USPS
effectively has a monopoly in the market.
With the April 2016 price change, the USPS will reduce rates for
Market Dominant mail classes (the mailing services category)
by removing a 4.3% surcharge increase that was implemented
in January 2014. This temporary surcharge was implemented
Because there are not equivalent services offered by other
to help the USPS account for losses during the U.S. economic
carriers, the government restricts the maximum rate at which the
downturn that began in 2008 and the USPS is projected to
Postal Service™ can raise or change these prices. This restriction
recoup these losses by April 10, 2016. With the removal of this
means the average percent increase for each Market Dominant
surcharge, First-Class Mail rates will decrease. There are no
mail class cannot exceed the current year’s Consumer Price Index.
changes to features, regulations or services for the April 2016
Competitive mail classes are USPS services that are similar to
services offered by private carriers such as FedEx and UPS.
Price Change and this is strictly a rate decrease that applies to
Market Dominant mail classes only.
The presence of marketplace competition increases the Postal
USPS Pricing Tiers
Service’s flexibility when pricing these classes, including the ability
The USPS offers discounted pricing options to certain types
to offer volume or negotiated discounts. There is no maximum rate
of customers for specific types of mail classes. They are also
cap for any increase in price for these mail classes.
able to negotiate prices for domestic and international shippers.
Below is a table of each mail class by category:
These negotiated rates are not “published” rates and therefore
not covered in our Price Change information.
Market Dominant
Mail Classes
Competitive Mail Classes
Published pricing tiers include the following:
First-Class Mail
First-Class Package Service
•
Standard Mail
Retail Ground
(formerly Standard Post)
Media Mail
Parcel Select Ground
(formerly Parcel Select)
Library Mail
Priority Mail
Bound Printed Matter
Priority Mail Express
First-Class Mail International
First-Class Package
International Service
Priority Mail International
Priority Mail Express International
Global Express Guaranteed
Retail Price: Retail pricing refers to the standard counter
price for postage at the Post Office™ or other physical retail
locations.
•
Commercial Base Pricing (CBP): Commercial Base
Pricing refers to the discounted postage price for certain
mail classes available to electronic postage users. The vast
majority of Endicia customers automatically receive CBP for
applicable Competitive mail classes.
•
Commercial Plus Pricing (CPP): Commercial Plus
Pricing refers to postage prices with deeper discounts
for certain mail classes available to qualified high-volume
shippers. Endicia customers who qualify for CPP discounts
automatically receive them through their software or
application.
With the April 2016 Price Change, rates will be decreasing for
market dominant mail classes only. Competitive mail classes
such as FCPS and Priority Mail® will remain unchanged, both
from a regulation and pricing perspective.
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Relevant Changes for Competitive Classes – “Mailing”
First-Class Mail
• What is First-Class Mail used for?
The Metered/PC Postage Letter category, defined as the
rates that you can receive through a PC Postage or Meter
company for First-Class letters up to 3.5 ounces,
First-Class Mail is used to send postcards, letters and flats
is decreasing by an overall average of 4.3% or $0.035
(large envelopes) that do not require expedited delivery or
per letter.
tracking information. Items can weigh up to 13 ounces and
must fall within size and thickness restrictions, the largest of
which is 0.75” thick for flats.
Additionally, businesses can use First-Class Mail for presorted
bulk mailings. Presorted pricing and rule changes are not
-- Postcards
Postcard prices are decreasing by one cent, from $0.35 to
$0.34, a 2.9% decrease.
-- Flats (large envelopes)
covered in this document, as they do not impact Endicia’s core
The Flats category is decreasing by an average of 4.3% or
customer base.
$0.10 per piece.
• What is the delivery standard for First-Class Mail?
-- Parcels
The majority of First-Class Mail (94%) is delivered in 3 days or
First-Class Mail Parcel is provided at retail rates and is
less. Delivery times are not guaranteed.
decreasing by an average of 3.9% or $0.13 per piece. The
• Average overall decrease
As a whole, First-Class Mail prices are decreasing an average
additional ounce rate after 3 ounces decreases from $0.20
to $0.19 per additional ounce.
First-Class Mail Letters and Postcards
of 4.1% or $0.09 per piece.
-- Letters
The retail price of a one-ounce (standard) First-Class
Mail stamp, the price you pay for a stamp at your Post
Office, is decreasing two cents, from $0.49 to $0.47. The
price for each additional ounce is decreasing by one cent
to $0.21 per ounce (from $0.22 per ounce in 2015). The
nonmachinable surcharge will also decrease by one cent
Piece Type
2016 Price
Change vs. 2015
1 oz. Letter: Retail
$0.47
-$0.02
1 oz. Letter: PC Postage
$0.465
-$0.02
Additional Ounce: Letters
$0.21
-$0.01
Nonmachinable Surcharge: Letters
$0.21
-$0.01
Postcards
$0.34
-$0.01
to $0.21 (from $0.22). The PC Postage rate for a oneounce First-Class Mail stamp will decrease from $0.485
to $0.465. PC Postage users will continue to receive
• Tracking
a $0.005 discount compared to the retail price when
USPS Tracking® is not available with First-Class Mail Letters,
printing postage for letters weighing 1 to 3.5 ounces.
Postcards or Flats. Free tracking is available for First-Class
Mail Parcels.
The Retail Letter category, defined as the rates charged at
the Post Office for First-Class letters up to 3.5 ounces, is
decreasing by an overall average of 4.2% or $0.035
per letter.
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Standard Mail
Library Mail
• What is Standard Mail used for?
• What is Library Mail used for?
Standard Mail is used for presorted bulk mailings like
Library Mail is used specifically for sending items between
advertising, newsletters and catalogs. Presorted pricing and
qualified organizations. Contents can include items on loan
rule changes are not covered in this document. Information on
from, or mailed between, academic institutions, public
Standard Mail changes can be found on the USPS website.
libraries, museums and other qualified institutions. Library Mail
• What is the delivery standard for Standard Mail?
Standard Mail is delivered in 3-10 days. Delivery times are
not guaranteed.
• Tracking
USPS Tracking is not available with most Standard Mail,
though Tracking can be added to Standard Mail Parcels for
shipments are restricted to books, sound recordings, academic
theses, and certain other approved items.
• What is the delivery standard for Library Mail?
Library Mail is delivered in 2-8 days. Delivery times are not
guaranteed.
• Average overall decrease
an additional $0.35 per piece, a decrease of one cent versus
As a whole, Library Mail prices are decreasing by an average
last year’s price.
of 4.2% or $0.80 per package.
Media Mail
• What is Media Mail used for?
Media Mail is a service used specifically to send educational
material. There are restrictions on the type of products or
materials that may be shipped using Media Mail, including
a restriction on sending video games. Contents may include
books, sound recordings, recorded video tapes, printed music
or recorded computer-readable media such as CDs, DVDs and
diskettes. Media Mail cannot include advertising of any kind,
except for incidental book announcements.
• What is the delivery standard for Media Mail?
Media Mail is delivered in 2-8 days. Delivery times are not
guaranteed.
• Average overall decrease
Overall, Media Mail prices are decreasing an average of 4% or
$0.80 per package.
• Tracking
USPS Tracking is FREE for both retail and PC Postage
customers.
Bound Printed Matter (BPM)
• What is BPM used for?
BPM is used for presorted mailing of bound materials, such as
catalogs and phone books. Presorted pricing and rule changes
are not covered in this document. Information on BPM changes
can be found on the USPS website.
• What is the delivery standard for BPM?
BPM is delivered in 2-8 days. Delivery times are not
guaranteed.
• Tracking
USPS Tracking is FREE for both retail and PC Postage
customers.
• Tracking
USPS Tracking is FREE for both retail and PC Postage
customers.
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First-Class Mail International (FCMI)
• Tracking
USPS Tracking are not available with FCMI.
• What is FCMI used for?
FCMI is used to send postcards, letters and flats (large
envelopes) internationally that do not require expedited
delivery or tracking information. Items can weigh up to 4
pounds and must fall with in size and thickness restrictions,
the largest of which is 0.75” thick for flats.
• What is the delivery standard for FCMI?
Delivery time varies by destination.
• Average overall decrease
As a whole, FCMI prices are decreasing by 3.8% or $0.45
per piece.
-- Letters
Country Group
Average % Change
Average $ Change
1
-4.0%
-$0.05
2
-4.0%
-$0.07
3-5
-4.0%
-$0.08
6-9
-4.0%
-$0.08
Country Group
Average % Change
Average $ Change
1
-4.2%
-$0.05
2
-4.2%
-$0.05
3-5
-4.2%
-$0.05
6-9
-4.2%
-$0.05
Country Group
Average % Change
Average $ Change
1
-3.8%
-$0.33
2
-3.8%
-$0.52
3-5
-3.8%
-$0.65
6-9
-3.8%
-$0.63
-- Postcards
-- Flats
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Additional changes
USPS Insurance
• Retail Signature Confirmation Restricted Delivery is
Overall, USPS regular insurance rates are decreasing by an
average of 4.6% 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% or $0.05 per increment.
decreasing $0.30 (3.7%) versus 2015 and will be available for
$7.85 per package.
• Electronic Signature Confirmation Restricted Delivery is
decreasing $0.30 (3.9%) versus 2015 and will be available for
$7.30 per package.
Coverage
Value
2016 Price
% Change
$ Change
$0.01-50.00
$2.10
-4.5%
-$0.10
$50.01-100.00
$2.65
-3.6%
-$0.10
$100.01-200.00
$3.35
-4.3%
-$0.15
$200.01-300.00
$4.35
-5.4%
-$0.25
$300.01-400.00
$5.50
-5.2%
-$0.30
• Certified Mail Adult Signature Required
$400.01-500.00
$6.65
-5.0%
-$0.35
• Certified Mail Adult Signature Required with
$500.01-600.00
$9.05
-4.2%
-$0.40
Per each
additional $100
$1.25
-3.8%
-$0.05
Certified Mail
Certified Mail will decrease by 4.3% from $3.45 to $3.30.
The following three options will decrease by 4.1% from $8.60
to $8.25:
• Certified Mail Restricted Delivery
Restricted Delivery
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).
Priority Mail continues to include the first $50 of USPS
insurance at no additional charge. Rates for Priority Mail
International and Priority Mail Express remain unchanged.
Other Changes
The rates for domestic extra services such as Special Handling
and Registered Mail are decreasing, as are the rates for
Signature Confirmation
Rates are decreasing for both Retail and Electronic purchases:
international extra services. These changes can be found on
the USPS website.
• Retail Signature Confirmation for First-Class Package
Service, Standard Post, Priority Mail and Package Services
(Media Mail, Library Mail and Bound Printed Matter) is
decreasing $0.10 (3.3%) versus 2015 and will be available for
$2.90 per package.
• Electronic Signature Confirmation for First-Class Package
Service, Priority Mail, Parcel Select and Package Services is
decreasing $0.10 (4.1%) versus 2015 and will be available for
$2.35 per package.
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Endicia and USPS:
The Right Choice for Your
Mailing and Shipping Needs Why Endicia?
No Hidden Fees—Private carriers regularly tack on surcharges
for residential, Saturday and rural deliveries, address validation
and so much more. It’s all included at no extra cost with the
USPS. The cost you see in the Endicia software is the price
you pay.
• The leader in electronic postage with over $12 billion in
postage printed.
• Close partnership with the USPS to help tailor the best
solution for your business.
• Intuitive, easy-to-use tools to print labels and track your
APO/FPO, PO Box Delivery—USPS is the only carrier that
can deliver to military and diplomatic addresses, as well as PO
Boxes. Endicia software makes sending packages to APO/FPO
addresses easy with integrated shipping and customs forms.
Delivery 365 days/year—USPS is the only carrier that delivers
every day of the year to residential addresses, mailboxes, mail
slots and PO Boxes. The Endicia software is also available
at any time so you can easily mail and ship whenever it is
convenient for you.
packages.
• Pay-on-Use Returns™- With Endicia’s Pay-on-Use Returns
you only pay for postage on the return shipping label if and
when it is used.
• Auto-Refund Service™ (ARS) - ARS automates the process
of requesting refunds for unused postage by identifying
potentially unused shipping labels and submitting a refund
request to the U.S. Postal Service on your behalf.
• Delivery Status Notification™ - With this simple, centralized
way to identify packages, you can receive automated daily
Tracking—With the introduction of the Intelligent Mail Barcode
reports on packages with one of three Delivery Status types:
(IMpb) the USPS typically has over 10 scan events per package.
Delivered, Delivery Failure or Delivery Exception.
Endicia supports IMpb and offers online tracking, making it
• Endicia Global Service™ (EGS) - Endicia Global Service
easy to keep an eye on packages.
eliminates many of the pain points associated with shipping
Flat Rate Options (domestic and international)—Priority Mail
to Latin America, such as customs delays, theft and costly
flat rate boxes from USPS offer a quick, easy and convenient
shipping options. Reach key markets in Latin America and
way to ship packages, at the most affordable price. Endicia
the Caribbean thanks to quicker and more reliable customs
software can help you choose the package option that is best
clearance, package tracking and affordable rates.
for your business.
Negotiated Pricing—USPS and Endicia offer the most
competitive pricing for your mailing and shipping needs – don’t
be fooled by private carrier rates that don’t reflect the true price
once hidden surcharges are added.
For information and resources, visit our April 2016 USPS Price Change page at
www.endicia.com/usps/postage-rate-change/April2016
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