Shipping With USPS: USPS Changes the Game for 2022, Encourages Shippers' Data-Backed Strategies

Shipping with USPS has been a primary method for small businesses and entrepreneurs to deliver goods and products to their customer base for many years. The Postal Service has continued to provide quality delivery services that are among the lowest letter and mail postage rates in the industrialized world. The USPS has remained a popular choice over other private shipping providers because it does not add surcharges for residential delivery or standard weekend deliveries. However, as pressures mount and the need for competitive yet profitable services increases, general rate increases are also seen for some of the most commonly utilized services the U.S. Postal Service offers.

Why USPS Is Changing Rates

As businesses continue to take advantage of the many benefits that shipping with USPS offers, the pressure on the organization is reaching an all-time high. According to a recent report from the United States Postal Service, "rate changes will contribute to $40 billion of investments in people, technology, and infrastructure over the next 10 years to modernize and improve the Postal Service's operations and customer experience." With an eye on future stability and competitiveness, the Postal Service is beginning to change rates in response to current trends. As some services become less desired and necessary, their rates may decrease slightly to make them more appealing to consumers. Likewise, services in high demand with shipping and supply chain networks can expect to see increases in the coming years.

What Are the Rate Changes?

Shipping with USPS will likely remain a pivotal option for business owners and start-up companies as they expand their customer base and look to utilize the most effective and most affordable shipping options available. The rate changes proposed by the Postal Service will see some increases and decreases as shown in a sampling of the proposed domestic Priority Mail Flat Rate Retail price changes, which were as follows:

ProductCurrentPlannedSmall Flat-Rate Box$8.45$9.45Medium Flat-Rate Box$15.50$16.10Large Flat-Rate Box$21.90$21.50APO/FPO Large Flat-Rate Box$20.40$20.00Regular Flat-Rate Envelope$7.95$8.95Legal Flat-Rate Envelope$8.25$9.25Padded Flat-Rate Envelope$8.55$9.65

The Postal Service knows how many individuals and businesses rely on their services to continue operating, especially in these trying times. That is why their commitment remains to provide the best possible services to all customers that choose shipping with USPS for their package shipping needs now and for coming peak season crunches.

What Is the Plus One Product?

According to recent data-backed analyses and reports, more businesses are looking for affordable options for short-distance and local shipping services. In response to these continuing trends, the Postal Service remains committed to supporting mail services with a renewed focus on residential services within local communities. To this end, they are proposing a new mail service that is currently entering a 2-year market test among small retail businesses.Known as the USPS Plus One product, this service will provide additional options for smaller businesses to help them reach local customers through shipping with USPS products and offerings.

What Is the USPS Connect Local Mail Product?

Continuing the focus of improving services for local businesses and communities, the Postal Service is looking to launch a new USPS Connect Local Mail product in the coming years to offset shipping costs. This product is designed to provide small and medium businesses with a way to send documents more quickly and efficiently. This initiative continues the push to give businesses a same-day or next-day delivery guarantee for a lower price than currently available. Recent data and analysis of the small-scale and local shipping trends continue to drive innovation and shipping services across the board. Shipping with USPS continues to be a primary source of innovative advancements and service upgrades for local businesses.

Stay Ready for Changing USPS Rates With a Single-Source of Truth for Logistics Data

The USPS has long been the go-to choice for small business owners who want the fastest and most affordable shipping services. Compared to private shipping services, the Postal Service continues to rank high for shipping options due in part to the fact that it does not add typical surcharges and fees to front door deliveries and other preferred shipping services. But with the growing need to be profitable while also maintaining a competitive advantage, USPS rates are increasing in some areas.Still, the value of shipping means having access to reliable and accurate freight data. Shippers can rely on data-driven actionable insights to identify when it's best to leverage USPS, the appropriate service level, and when to go with other carriers. That's the value of advanced business intelligence and analytics-driven insight through Intelligent Audit. To learn more about these increases and how to maximize the efficiency of shipping with USPS and maintain optimum OTIF rates without breaking the bank, contact Intelligent Audit today.

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