USPS has made some significant changes in its shipping rates this year. The changes are affecting merchants of all sizes, requiring creative and smarter shipping approaches.
While the shipping rates changes for UPS and FedEx in 2019 indicate a 4.9% increment over last year, for USPS, the changes made include both for the shipping rates and the pricing structure used for multiple shipping methods. The shipping rates increased for most zones, products, and weight. This means that merchants need to understand what the rates to expect when upselling specific types of products or using certain methods. The free USPS shipping rates calculator by InstantShip allows you to make accurate estimates on USPS rates before shipping your products. This helps you avoid the frustrations and confusion that comes with inappropriate means of determining shipping rates.
Examples of Changes in USPS Shipping Rates
The most notable change by USPS is in its First-Class Mail for small packages. Previously, merchants shipping with USPS First-Class Mail for small packages enjoyed a single rate that was based on the weight of the package up to 15.999 oz, regardless of the distance. However, this shipping structure is now moving to zone-based pricing, which means that distance now affects the price. Under the new pricing structure, the new shipping rates for Zones 1 & 2 remain the same as the 2018’s, but shipping rates for other zones have increased by about 11.9%.
USPS First-Class Mail Shipping Rate for sending a 15 oz package, at 5''x5''x5'' in size, from Phoenix, Arizona to Kansas City, Missouri
Another change being implemented by USPS in its 2019 shipping rates structure is the use of Dimensional Weight (DIM). DIM weight is calculated by multiplying the L x W x H of the package. If the outcome of the calculation is greater than actual weight of the package, then DIM Weight applies. DIM pricing has been added to USPS Priority Mail for zones 1 through 4 and now it applies to all zones. DIM divisor for packages over 1 cubic foot is changing from 194 to 166. If you want to know all changes being implemented by USPS in its 2019 shipping rates, make sure visit USPS Shipping Rate Change in 2019.
USPS Zones for Charlotte, North Carolina
Implications to the Shipping Industry
The recent changes in USPS shipping rates mean that smarter shipping is critical to business success in 2019. Merchants of all sizes will have to understand how the changes affect their shipping costs and profitability. While the free USPS shipping calculator by InstantShip allows you to accurately estimate your shipping and postage costs, reviewing these changes will help you in understanding how the rates are arrived at. It is also important in understanding the factors such as Dimensional Weight and shipping zones that have a significant impact on the rates changed for the specific types of products that you ship. This way, you can plan well in advance and put aside the right budget for your shipping needs.