9.8% Higher USPS Package Prices Could Hit E-commerce Marketers Hard
“The Postal Service also revealed plans to do away with Commercial Plus pricing,” adds Ina Steiner of EcommerceBytes.com, “and on the face of it, that could have a major impact on many small- and medium-sized merchants.”
If it goes into effect on Jan. 17, this first price hike on Priority Mail packages becomes reality just as FedEx and UPS up their shipping rates and fuel surcharges, Steiner notes in Monday’s post.
In its Friday announcement about the proposed price rise, USPS says the increases it requested the Postal Regulatory Commission approve don’t include changes on First Class mail costs.
“The postal service continues to provide excellent value and reliability for the shipping industry,” according to the USPS release, “along with convenient choices for consumers. The average Shipping Services price change is 9.5 percent, which results in an average shipping price of less than $5.50 per shipment across all shipping products. … The Postal Service continues to enable America’s e-commerce growth and enhance its portfolio of mailing and shipping solutions to best meet the evolving needs of our business and residential customers.”
USPS justifies the price rise to the PRC in its Friday filing.
“The changes we establish should enable each competitive product to cover its attributable costs,” USPS tells the PRC.
In 2017, USPS would also like to eliminate a discounting program called Commercial Plus.
“The move to do away with the Commercial Plus category could have a direct impact on eBay sellers,” Steiner writes. “As this page on its website explains, all eBay sellers who use eBay Labels to pay for postage and print shipping labels automatically get USPS Commercial Base pricing, but eBay offers Commercial Plus pricing to its Top-Rated sellers and those with an average of 300 transactions per month (Platinum, Titanium, Gold and Silver Powersellers). However, the USPS noted in its filing, ‘Commercial Plus customers may be transitioned to Negotiated Service Agreements (NSAs) for additional discounts.’ ”
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