USPS to Reduce Business Rates on Priority Mail

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The Postal Service makes an aggressive play in shipping, dropping prices an average 2.3% for Commercial Plus customers.

The Postal Service makes shipping a priority.
The Postal Service makes shipping a priority.
The U.S. Postal Service this week filed notice with the Postal Regulatory Commission that it intended to reduce rates on Priority Mail for businesses and other customers using Commercial Plus and Commercial Base online shipping services. The PRC must approve or deny the request within 30 days of filing.

Prices will decline an average 2.3% for Commercial Plus customers and 0.9% for Commercial Base shippers. “Unlike others in the shipping industry, the Postal Service is not implementing any new dimensional-weight charges,” pointed out USPS Chief Marketing and Sales Officer Nagisa Manabe. In June UPS announced it would join FedEx in raising rates for larger-size packages at the end of the year.

The move signals the aggressiveness with which USPS intends to play in the shipping business, one of its few growth areas. Shipping and package delivery revenue increased 11.2% to $7.3 billion in the second quarter of its fiscal year. Standard mail increased 2% in the same period, while First Class declined 4.1%.

“The Postal Service is a vital business partner for small and large businesses and lowering shipping prices will save them money and improve their bottom line,” Manabe said. 

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