Understanding the May 2015 U.S. Postal Service Price Change

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1 Understanding the May 2015 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 new 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 May 31, 2015, there will be a price change inclusive of both the Shipping and Mailing categories. Both primary competitors of the USPS, UPS and FedEx, increased their rates in December 2014 and January 2015 respectively.

2 Contents Overview...3 Brief Description:...3 Key Highlights or Changes:...3 Additional Information:...3 Background...4 Market Dominant vs. Competitive...4 USPS Pricing Tiers...4 Relevant Changes for Competitive Classes Shipping...5 First-Class Package Service (FCPS)...5 Standard Post...6 Parcel Select (non-presort)...7 Priority Mail (PM)...7 Priority Mail Express (PME)...8 First-Class Package International Service (FCPIS)...9 Priority Mail International (PMI)...10 Priority Mail Express International (PMEI)...12 Global Express Guaranteed (GXG)...13 Comparing Prices:, Commercial Base and Commercial Plus...14 Qualifying for Commercial Plus Pricing (CPP)...14 Tier Comparison...14 Relevant Changes for Market Dominant Classes Mailing...15 First-Class Mail...15 Standard Mail...16 Media Mail...16 Library Mail...16 Bound Printed Matter (BPM)...17 First-Class Mail International (FCMI)...17 Additional Changes...18 International Product Changes...18 USPS Insurance...18 Signature Confirmation...19 Certified Mail...19 PG 2

3 Overview Brief Description 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 new 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 May 31, 2015, there will be a price change inclusive of both the Shipping and Mailing categories. Both primary competitors of the USPS, UPS and FedEx, increased their rates in December 2014 and January 2015 respectively. Endicia will update all service offerings with the new prices and applicable regulations to ensure our customers are compliant and print postage correctly. We are committed to providing our customers with all USPS options as soon as they are available, and we make it a priority to educate our customers and partners about the changes and how they will be affected. The May 2015 USPS price change includes two proposals filed for approval with the Postal Regulatory Commission (PRC): Market Dominant CPI filing Approved in April 2015 Competitive filing Approved in April 2015 Effective Date: U.S. Postal Service: Sunday, May 31, 2015 at 12:01am Key Highlights or Changes: Starting Sunday, May 31, 2015, at 12:01am: Priority Mail International for Canada will switch to zone based pricing there will be 7 pricing zones versus the previous single rate for the entire country. The USPS will reduce the $0.01 electronic postage / meter discount to $.005 for First-Class Mail Letters (up to 3.5 oz.). Proposed, pending approval: First-Class Mail Parcel () becomes First-Class Package Service (FCPS), which would add a pricing tier to the existing Commercial Base and Commercial Plus pricing tiers for FCPS. USPS Tracking becomes free for Library Mail and Media Mail and thus USPS Tracking is included for all domestic mail classes at no additional cost with the exception of Standard Mail which has a cost of $0.36 per piece. USPS will require a signature at delivery for all USPS insured shipments with an insured value of more than $500, up from $200; Signature Confirmation is included at no additional fee Additional Information: Priority Mail rates remain unchanged allowing shippers to can take advantage of the lower rates that went into effect in September FedEx and UPS implemented dimensional (DIM) weight rating for all Ground shipments at the beginning of This change means that large, lightweight items are much more costly to ship than they were in It s important to check and see if the lower USPS Priority Mail rates would be a more economical option. PG 3

4 Background Market Dominant vs. Competitive Market Dominant mail classes are services for which the USPS effectively has a monopoly in the market. Because there are not equivalent services offered by other carriers, the government restricts the maximum rate at which the Postal Service can raise or change these prices. This restriction means the average percent increase for each Market Dominant mail class cannot exceed the current year s Consumer Price Index (CPI). Competitive mail classes are USPS services that are similar to services offered by private carriers such as FedEx and UPS. The presence of marketplace competition increases the USPS flexibility when pricing these classes, including the ability to offer volume or negotiated discounts. There is no maximum rate cap for any increase in price for these mail classes. Below is a table of each mail class by category: Market Dominant Mail Classes First-Class Mail Standard Mail Media Mail Competitive Mail Classes First-Class Package Service Standard Post Parcel Select USPS Pricing Tiers The USPS offers discounted pricing options to certain types of customers for specific types of mail classes. They are also able to negotiate prices for high-volume domestic and international shippers. These negotiated rates are not published rates and therefore not covered in our Price Change information. Published pricing tiers include the following: Price: pricing refers to the standard counter price for postage purchased 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 deeply discounted postage prices for certain mail classes available to qualified high-volume shippers. Endicia customers who qualify for CPP pricing automatically receive them through their software or application. Library Mail Bound Printed Matter First-Class Mail International Priority Mail Priority Mail Express First-Class Package International Service Priority Mail International Priority Mail Express International Global Express Guaranteed PG 4

5 Relevant Changes for Competitive Classes Shipping First-Class Package Service (FCPS) Proposed, pending approval: The USPS will move First- Class Mail Parcel, currently a Market Dominant product, to the Competitive group. This product will be renamed First- Class Package Service and become the pricing tier to complement the existing Commercial Base and Commercial Plus pricing tiers for FCPS. Endicia customers, unless part of the USPS Approved Shipper program, will continue to use the Commercial Base (or Commercial Plus, if qualified) pricing tier for their FCPS packages. What do shippers use FCPS service for? FCPS is used for items that weigh 13 ounces or less, are more than ¾ of an inch thick (or ¼" thick, if rigid) and 108" or less in length + height + width. It s great for small, low-value items like product samples or swatches, single t-shirts, or small stuffed animals. In order to qualify for the Commercial Plus Pricing tier, a shipper must have a customer commitment agreement with the USPS to send more than 5,000 FCPS packages in a calendar year. Shippers that qualify for FCPS Commercial Plus discounts can ship packages that weigh up to one pound ( ounces). Average overall increase: : FCPS: Pricing Weight 2015 Price Change vs oz. $2.54 +$ oz. $2.54 +$ oz. $2.54 +$ oz. $2.74 +$ oz. $2.94 +$ oz. $3.14 +$ oz. $3.34 +$ oz. $3.54 +$ oz. $3.74 +$ oz. $3.94 +$ oz. $4.14 +$ oz. $4.34 +$ oz. $4.54 +$0.42 What is the delivery standard for FCPS? The delivery standard for FCPS is 2-3 days (not guaranteed). This is comparable to FedEx or UPS 2-3 day service for packages weighing less than one pound. PG 5

6 Commercial Base Pricing (CBP): FCPS Commercial Base Pricing is increasing by an average of 5.1%, which equates to an average of $0.13 more per package. FCPS: Commercial Base Pricing Weight 2015 Price Change vs oz. $2.04 +$ oz. $2.04 +$ oz. $2.04 +$ oz. $2.13 +$ oz. $2.22 +$ oz. $2.35 +$ oz. $2.53 +$ oz. $2.71 +$ oz. $2.89 +$ oz. $3.07 +$ oz. $3.25 +$ oz. $3.44 +$ oz. $3.63 +$0.16 Commercial Plus Pricing (CPP): Commercial Plus Pricing kicks in for weights between 13 oz. and 16 oz. and only applies to the extended weight options available to these shippers. Pricing for the standard weight range of First-Class Package Service is the same as the Commercial Base tier. The price for the Commercial Plus weight group is not increasing in Tracking is FREE for FCPS. Standard Post What do shippers use this service for? Standard Post is geared toward heavier or larger packages that don t require expedited delivery. Standard Post is designed to compete with UPS and FedEx Ground services, with the real benefit to shippers being that, unlike the private carriers, the USPS does not add surcharges for things like fuel, Saturday delivery or rural delivery. Standard Post is ONLY available at the retail counter. The comparable mail class available to Endicia customers is Parcel Select, which features the same delivery time and is less expensive than Standard Post for all weights and zones. There are no flat rate or regional rate options for Standard Post, nor are there any Commercial Base or Commercial Plus discounts for this mail class. What is the delivery standard for Standard Post? The delivery standard for Standard Post is 2-9 days (not guaranteed) in the continental United States. This is comparable to FedEx or UPS Ground service. Pricing for Standard Post shipments going to Zones 1-4 is exactly the same as that of Priority Mail. These packages will automatically be processed as Priority Mail service, unless Ground service is required. Ground service is required when the item being mailed cannot travel by air, as in the case of hazardous materials. Average overall increase: There is only one price tier for Standard Post. Standard Post pricing will increase on average by 10.2% versus This increase equates to an average of an additional $5.00 per package. For packages weighing 5 lbs. or less, Standard Post pricing will increase an average of +7.5% or +$0.70 per piece. Tracking is FREE for Standard Post. PG 6

7 Parcel Select (non-presort) What do shippers use this service for? Parcel Select is geared toward items that don t require expedited delivery. It is similar in delivery standard to Standard Post, but more economical in all cases and is the USPS Ground delivery option for electronic Postage users. There are no Commercial Base or Commercial Plus discounts for Parcel Select. For packages going to Zones 1-4, Priority Mail Commercial Base prices are less expensive than Parcel Select, with delivery likely faster than Parcel Select. For packages weighing 1 lb., Priority Mail is less expensive to all Zones. There are no flat rate or regional rate options for Parcel Select. What is the delivery standard for Parcel Select? The delivery standard for Parcel Select is 2-9 days (not guaranteed). This is comparable to FedEx or UPS Ground service. Average overall increase: There is only one price tier for Parcel Select. Parcel Select pricing will increase on average by 10.2%, which equates to approximately $5.00 more per package. Lightweight packages will see less of an impact. For those weighing 5 lbs. or less, the increase will be 7.5% on average, or approximately $0.70 per package. Tracking is FREE for Parcel Select. Priority Mail (PM) What do shippers use this service for? Priority Mail is an excellent and economical option for businesses shipping packages to residential addresses that want quick delivery with free tracking, while remaining cost-conscious. It offers many options, including regular zone-based pricing, flat rate envelopes and boxes, regional rate packaging, cubic pricing and Critical Mail envelopes. The Postal Service also offers a variety of free packaging for Priority Mail shipments, which can save businesses even more money. In addition, Priority Mail includes free tracking and $50 of free USPS insurance coverage. Priority Mail includes three price tiers:, Commercial Base, and Commercial Plus What is the delivery standard for Priority Mail? The delivery standard for Priority Mail is 2-3 days (not guaranteed). This is comparable to FedEx or UPS 2-3 day service. Rates for PM across retail, Commercial Base, and Commercial Plus remain unchanged from the September 2014 Price Change Critical Mail Critical Mail (CM) is a Commercial Plus mail class, only available to shippers who meet or commit to a volume requirement of 5,000 CM pieces in a calendar year. CM offers two package options: Letter and Flat, as well as a Signature Upon Delivery pricing option. There is no change to Critical Mail pricing for Cubic Priority Mail Cubic is a Commercial Plus mail class, available to shippers who meet or commit to a volume requirement of 50,000 Cubic-priced pieces in a calendar year. There are no additions to the Priority Mail Cubic mail class options or package sizes. There is no change to Cubic pricing for PG 7

8 Flat Rate and Regional Rate Pricing Tables: There are no changes to, Commercial Base and Commercial Plus Pricing tiers. Priority Mail Flat Rate: Commercial Base Pricing Package Type 2015 Price Change vs Flat Rate Envelope $5.05 NO CHANGE Legal Flat Rate Envelope $5.25 NO CHANGE Padded Flat Rate Envelope $5.70 NO CHANGE Small Flat Rate Box $5.25 NO CHANGE Medium Flat Rate Box $11.30 NO CHANGE Large Flat Rate Box $15.80 NO CHANGE APO/FPO Large Flat Rate Box $13.80 NO CHANGE Tracking is FREE for Priority Mail. Priority Mail Express (PME) What do shippers use this service for? Priority Mail Express is perfect for packages that need to be delivered very quickly, with overnight delivery to most locations and second day delivery in outlying areas. Priority Mail Express includes free tracking and up to $100 of free USPS insurance coverage. As with Priority Mail, Priority Mail Express users can leverage regular zone-based pricing, as well as flat rate envelopes and flat rate boxes. The Postal Service also offers a variety free packaging for Priority Mail Express shipments, which can save businesses even more money. Priority Mail Express includes three price tiers:, Commercial Base, and Commercial Plus. What is the delivery standard for Priority Mail Express? The delivery standard for Priority Mail Express is 1-2 days (guaranteed). This is comparable to FedEx or UPS Overnight service in most locations and 2-day service in remote locations. Key changes for PME: Outside of pricing, there is one key change shippers should be aware of with regard to Priority Mail Express: The USPS is combining both domestic and International Insurance pricing into one table and there will no longer be separate insurance tables. Tracking is FREE for Priority Mail Express. PG 8

9 Priority Mail International (PMI) What do shippers use this service for? Priority Mail International (PMI) is a reliable and affordable way to ship non-time sensitive packages up to 70 lbs to international locations. PMI includes delivery status with the USPS Track & Confirm tool on all package types except the Flat Rate Envelopes and Small Flat Rate Boxes, which instead include free electronic Delivery Confirmation to select countries. What is the delivery standard for PMI? The delivery standard for PMI is 6-10 business days (to most destinations). Key changes for PMI Priority Mail International for Canada will switch to zone based pricing there will now be 7 pricing zones versus one overall rate previously. By doing this, the USPS will be able to keep rates low for select locations and minimize the effect on shippers. Now with zone based pricing, this allows the USPS to charge based on the actual US origin and destination to Canada, instead of having to factor expensive routes into one blended rate. Looking at some of the major US cities such as San Francisco or New York, utilizing Priority Mail International to Canada, on average, the PMI rates have decreased across, Commercial Base and Commercial Plus Pricing tiers. For Commercial Base Rates, Zone 1.7 and Zone 1.8 are where rates are increasing the most. Zone 1.7 is increasing by an average of 18.44% or $17.16 per package and Zone 1.8 is increasing by an average of 30.95% or $30.59 per package. Depending on where the shipping facility is located and the weight of the package, shippers may be less affected and some may even benefit from a decrease in PMI pricing (see chart below for example locations). PMI Canada: Commercial Base Pricing Examples Origin Destination Zone Average 2015 Change ($) Average 2015 Change (%) San Francisco, CA Canada 1.1 & 1.2 -$ % New York, NY Canada 1.1 & 1.2 -$ % Boston, MA Canada 1.3 +$ % Orlando, FL Canada 1.3 +$ % Wichita, KS Canada 1.4 +$ % Dallas, TX Canada 1.5 +$ % Anchorage, AK Canada 1.6 +$ % Juneau, AK Canada 1.7 +$ % Honolulu, HI Canada 1.8 +$ % Average overall increase (excluding Canada): The price for PMI is increasing by an average of +6.6% per package, which equates to an increase in the average price per package of +$9.28. Flat Rate packaging prices are increasing an average of +7.1% or +$3.44 per package. Commercial Base Pricing: The Commercial Base price for PMI is increasing by an average of +3.3% per package, which equates to an increase in the average price per package of +$3.76. Flat Rate packaging Commercial Base prices are increasing an average of +7.3% or +$3.31 per package. Commercial Plus Pricing: The Commercial Plus price for PMI is increasing by an average of 0.5% per package, which equates to an overall decrease in the average price per package of -$0.22. Flat Rate packaging Commercial Plus prices are increasing an average of +7.3% or +$3.31 per package. PG 10

10 Average overall increase (Canada only): The price for PMI to Canada is increasing by an average of % per package, which equates to an increase in the average price per package of +$ For Zones 1.1 & 1.2, rates for PMI will be decreasing by an average of 4.01%, which equates to a decrease in the average price per package of $7.06. The decreases are focused primarily on packages 19 lbs. or higher. Zones Average 2015 Change ($) Average 2015 Change (%) 1.1 & 1.2 -$ % 1.3 +$ % 1.4 +$ % 1.5 +$ % 1.6 +$ % 1.7 +$ % Zones Average 2015 Change ($) Average 2015 Change (%) 1.8 +$ % 1.1 & 1.2 -$ % 1.3 +$ % 1.4 +$ % 1.5 +$ % 1.6 +$ % 1.7 +$ % 1.8 +$ % Flat Rate packaging prices are increasing an average of +7.0% or +$2.45 per package. Commercial Base Pricing: The Commercial Base price for PMI is increasing by an average of % per package, which equates to an increase in the average price per package of +$9.70. For Zones 1.1 & 1.2, Commercial Base rates for PMI will be decreasing by an average of 6.29%, which equates to a decrease in the average price per package of $8.48. The decreases are focused primarily on packages up to 1 lb. and then packages weighing more than 13 lbs. Flat Rate packaging Commercial Base prices are increasing an average of +7.00% or +$2.33 per package. Commercial Plus: The Commercial Plus price for PMI is increasing by an average of 6.61% per package, which equates to an overall increase in the average price per package of +$4.60. For Zones 1.1 & 1.2, Commercial Plus rates for PMI will be decreasing by an average of 8.74%, which equates to a decrease in the average price per package of $ Zones Average 2015 Change ($) Average 2015 Change (%) 1.1 & 1.2 -$ % 1.3 +$ % 1.4 +$ % 1.5 +$ % 1.6 +$ % 1.7 +$ % 1.8 +$ % The decreases are focused primarily on packages up to 5 lbs. and then packages weighing more than 10 lbs. Flat Rate packaging Commercial Plus prices are increasing an average of +7.00% or +$2.33 per package. PG 11

11 Tracking/Delivery Confirmation: Track and Confirm is FREE for PMI, but NOT available with Flat Rate Envelopes or Small Flat Rate Box. However, electronic USPS Delivery Confirmation International is FREE for these two types of PMI packages going to select destinations. The following countries support this service: Australia, Belgium, Brazil, Canada, Croatia, Denmark, Estonia, Finland, France, Germany, Gibraltar, Great Britain, Hungary, Israel, Italy, Latvia, Lithuania, Luxembourg, Malaysia, Malta, Netherlands, New Zealand, Northern Ireland, Portugal, Singapore, Spain and Switzerland. Priority Mail Express International (PMEI) What do shippers use this service for? Priority Mail Express International offers shippers economical expedited international delivery to most countries, with date-specific service to select major market countries (i.e. Australia, China, Great Britain, etc.). PMEI includes $200 insurance coverage, free tracking and a money-back guarantee in certain countries. What is the delivery standard for PMEI? The delivery standard for PMEI is 3-5 business days (datespecific delivery available to certain markets) Key changes for PMEI: PMEI will now be available for Burma, Kiribati, and Sao Tome and Principe Average overall increase: The price for PMEI is increasing by an average of +6.1% per package, which equates to an increase in the average price per package of +$ For packages weighing 5 lbs. or less, rates are increasing an average of +8.19% or +$4.79 per piece. Flat Rate packaging prices are increasing an average of +7.1% or +$4.14 per package. Commercial Base Pricing: The Commercial Base price for PMEI is increasing by an average of +1.8% per package, which equates to a decrease in the average price per package of +$1.46. For packages weighing 5 lbs. or less, Commercial Base rates are increasing an average of +8.19% or +$4.79 per piece. Flat Rate packaging Commercial Base prices are increasing an average of 7.2% or -$3.84 per package. Commercial Plus Pricing: The Commercial Plus price for PMEI is decreasing by an average of -3.7% per package, which equates to a decrease in the average price per package of -$7.47. For packages weighing 5 lbs. or less, Commercial Plus rates are increasing an average of +5.18% or +$2.47 per piece. Flat Rate packaging Commercial Plus prices are decreasing an average of +7.2% or +$3.84 per package. Tracking/Delivery Confirmation: Track and Confirm is FREE for PMEI. PG 12

12 Global Express Guaranteed (GXG) What do shippers use this service for? Global Express Guaranteed is perfect for the international shipment of items or documents that require fast, guaranteed delivery with advanced end-to-end tracking. Final delivery for GXG is made by FedEx, allowing shippers to have full shipment visibility. GXG also includes $100 in USPS insurance coverage. What is the delivery standard for GXG? The delivery standard for GXG is 1-3 days (guaranteed, datecertain delivery) Average overall increase: The price for GXG is increasing by an average of +5.5% per package, which equates to an increase in the average price per package of +$ For packages weighing 5 lbs. or less, rates are increasing an average of +7.8% or +$7.23 per piece. Commercial Base Pricing: The Commercial Base price for GXG is decreasing by an average of -0.9% per package, which equates to a decrease in the average price per package of -$2.67. For packages weighing 5 lbs. or less, Commercial Base rates are increasing an average of -0.6% or +$-0.38 per piece. Commercial Plus Pricing: The Commercial Plus price for GXG is decreasing by an average of -1.4% per package, which equates to a decrease in the average price per package of -$3.67. For packages weighing 5 lbs. or less, Commercial Plus rates are decreasing an average of -1.0% or -$0.73 per piece. Tracking/Delivery Confirmation: Tracking/Delivery Confirmation is FREE for GXG, with no change to this structure from PG 13

13 Comparing Prices:, Commercial Base and Commercial Plus Qualifying for Commercial Plus Pricing (CPP) Commercial Plus Pricing (CPP) provides highly discounted postage rates to qualified high volume shippers. Customers can qualify for one or more Commercial Plus Pricing options by meeting one of the volume thresholds below or by signing a Customer Commitment Agreement with the USPS. Tier Comparison International and Domestic (no discounts on any Flat Rate option) Global Express Guaranteed Avg. CBP CBP All thresholds are based on the annual (calendar year) quantity of pieces mailed using the listed mail class or combination of mail classes, with the exception of Priority Mail Express. Priority Mail Express qualification is based on the quantity of Priority Mail Express packages sent in the previous four quarters. Qualification thresholds for Priority Mail Commercial Plus Pricing remain unchanged in The minimum volume thresholds are shown below. Overall 16.0% 24.0% 9.5% Packages: 5 lbs. and under 16.0% 24.0% 9.5% Priority Mail Express International Avg. CBP CBP Overall 12.3% 24.4% 13.8% Mail Class Type of Packages Included Qualification Threshold Packages: 5 lbs. and under 8.1% 17.9% 10.8% Priority Mail Express All domestic Priority Mail Express shipments 5,000 pieces Priority Mail Letters, Flats and Critical Mail 5,000 pieces Priority Mail Letters, Flats, Packages (including Flat Rate), Critical Mail, and Padded Flat Rate Envelope 50,000 pieces Priority Mail Cubic 50,000 pieces Priority Mail International (Except Canada) Avg. CBP CBP Overall 13.6% 21.5% 9.1% Packages: 5 lbs. and under 13.7% 21.6% 9.1% All First-Class Package International Service, Priority Mail International International, Priority Mail Express International, and Global Express Guaranteed packages/shipments $100,000 in postage value Domestic (no discounts on any Flat Rate option) Priority Mail Avg. CBP CBP Shippers are often curious about what these discount tiers really mean in terms of savings. Following is detail around the savings using each tier, illustrating the benefits for any shipper using an electronic postage provider, like Endicia, as well as the benefits high volume shippers can recognize using USPS. Overall 16.6% 29.5% 15.5% Flat Rate (ALL) 11.0% 15.3% 4.8% Packages: 5 lbs. and under 15.2% 32.4% 20.4% PG 14

14 Tier Comparison (continued) Priority Mail International (Canada) Avg. CBP CBP FCPIS Avg. CBP CBP Overall 11.7% 21.0% 10.5% Packages: 5 lbs. and under 12.7% 21.0% 9.5% Overall 10.0% 16.2% 6.9% Packages: 1 lb. and under 10.0% 15.8% 6.5% Relevant Changes for Market Dominant Classes Mailing First-Class Mail What is First-Class Mail used for? First-Class Mail is used to send postcards, letters and flats (large envelopes) that do not require expedited delivery or tracking information. Items can weigh up to 13 oz. and must fall within size and thickness restrictions, the largest of which is ¾" thick for flats. Additionally, businesses can use First-Class Mail for presorted bulk mailings. Presorted pricing and rule changes are not covered in this document, as they do not impact Endicia s core customer base. First-Class Mail Parcel postage is only available at the retail counter and details on the changes for this service are not included in this document. The relevant information for businesses that want to use First-Class Mail to ship packages is included in the First-Class Package Service section. What is the delivery standard for First-Class Mail? 94% of First-Class Mail is delivered in 3 days or less. Delivery times are not guaranteed. Average overall increase: As a whole, First-Class Mail prices are increasing by 7.4%, which equates to an average of an additional $0.16 per piece. Letters The price of a one-ounce (standard) First-Class Mail stamp remains unchanged at $0.49. The price for additional ounces is increasing by one cent to $0.22 per ounce (from $0.21 per ounce in January 2014), as is the non-machinable surcharge; parcel after 3oz. remains unchanged at $0.17. New for 2015: PC Postage users will receive a $0.005 discount when printing postage for 1 to 3.5 oz. letters, which is a decrease from a $0.01 discount in The PC Postage rate for a one-ounce First-Class Mail stamp will be $ The Letter category, defined as the rates charged at the Post Office for First-Class letters up to 3.5oz., is increasing by an overall average of 1.6% or an additional $0.01 per letter. The Metered/PC Postage Letter category, defined as the rates that you can receive through a PC Postage or Meter company, is increasing by an overall average of 2.3% or an additional $0.02 per letter. Postcards Postcard prices are increasing by one cent, from $0.34 to $0.35, a 2.9% increase. Flats (large envelopes) Overall, the Flats category is increasing by an average of 2.3%. This comes to an average increase per piece of $0.06. PG 15

15 Parcels Proposed, pending approval: First-Class Mail Parcel will be renamed to First-Class Package Service (). For additional changes relating to this product, please see the First-Class Package Service section. First-Class Mail Letters and Postcards Piece Type 2015 Price Change vs oz. Letter: $0.49 NO CHANGE 1 oz. Letter: PC Postage $ $0.005 Additional Ounce: Letters $0.22 +$0.01 Non-Machinable Surcharge: Letters $0.22 +$0.01 Postcards $0.35 +$0.01 Tracking is not available with First-Class Mail Letters, Postcards or Flats. Tracking is available for First-Class Mail Parcels and is now FREE. Standard Mail What is Standard Mail used for? Standard Mail is used for presorted bulk mailings like advertising, newsletters and catalogs. Presorted pricing and rule changes are not covered in this document. However, there are changes for Standard Mail and those can be found on the USPS website. What is the delivery standard for Standard Mail? Standard Mail is delivered in 3-10 days. Delivery times are not guaranteed. Tracking is not available with most Standard Mail, though Tracking can be added to Standard Mail Parcels for an additional $0.36 per piece, an increase of thirteen cents versus last year s price. 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 typically delivered in 2-8 days. Delivery times are not guaranteed. Average overall increase: Overall, Media Mail prices are increasing an average of 6.2%, which equates to an additional $1.30 per package. Tracking for Media Mail is now FREE, both for retail and electronic postage. Library Mail What is Library Mail used for? Library Mail is used specifically for sending items between qualified organizations. Contents can include items on loan from, or mailed between, academic institutions, public libraries, museums and other qualified institutions. Library Mail shipments are restricted to books, sound recordings, academic theses, and certain other approved items. What is the delivery standard for Library Mail? Library Mail will be delivered in 2-8 days. Delivery times are not guaranteed. Average overall increase: Overall, Library Mail prices are increasing an average of 7.1%, which equates to an additional $1.20 per package. Tracking for Library Mail is now FREE, both for retail and electronically. PG 16

16 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. However, there are changes for BPM and those can be found on the USPS website. What is the delivery standard for BPM? BPM is typically delivered in 2-8 days. Delivery times are not guaranteed. Tracking for BPM is now FREE, both for retail and electronic postage. First-Class Mail International (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 lbs. and must fall with in size and thickness restrictions, the largest of which is ¾" thick for flats. What is the delivery standard for FCMI? Delivery time varies by destination. Average overall increase: As a whole, FCMI prices are increasing by 4.0%, which equates to an average additional $0.45 per piece. Letters Country Group Average % Change Average $ Change % +$ % +$ % +$ % +$0.08 Postcards Country Group Average % Change Average $ Change % +$ % +$ % +$ % +$0.05 Flats (large envelopes) Country Group Average % Change Average $ Change % +$ % +$ % +$ % +$0.63 Tracking/Delivery Confirmation: Tracking/Delivery Confirmation is not available with FCMI. PG 17

17 Additional Changes International Product Changes Priority Mail Express International (PMEI) Enhancements PMEI will now be supported in Burma (price group 6), Kiribati (price group 7), and Sao Tome an Principe (price group 7) Priority Mail International (PMI) weight and size update PMEI destined to Netherlands (price group 17) will now allow a maximum of 66 pounds. USPS Insurance Overall, USPS regular insurance rates are increasing by an average of 5.5% up to $200. Rates for insurance coverage from $ will decrease an average of 14.3%. Then there will be a subsequent increase of 2.4% that gradually increases as the coverage value increases. Priority Mail continues to include the first $50 of USPS insurance at no charge. Rates for Priority Mail International insurance are increasing by an average of 14.3% and rates for Priority Mail Express International insurance are increasing by an average of 115%. Do note that the rates for Priority Mail International and Priority Mail Express International insurance provided by USPS are now combined into a single table, however we have separated them below to better illustrate the rate changes. Rates for Priority Mail Express Insurance remain unchanged. USPS Regular Insurance Coverage Value 2015 Price % Change $ Change $ $ % +$0.10 $ $ % +$0.15 $ $ % +$0.20 $ $ % -$0.90 $ $ % -$0.95 $ $ % -$1.00 $ $ % +$0.20 Per each additional $100 $ % +$0.05 USPS Priority Mail International Insurance Coverage Value 2015 Price % Change $ Change $ $ % -$0.90 $ $ % -$0.90 $ $ % -$0.90 $ $ % -$0.90 $ $ % -$0.90 $ $ % -$0.90 $ $ % -$0.90 $ $ % -$0.90 $ $ % -$0.90 $ $ % -$0.90 Per each additional $100 $1.15 NO CHANGE +$0.00 USPS Priority Mail Express International Insurance Coverage Value 2015 Price % Change $ Change $ $ % +$2.65 $ $ % +$3.80 $ $ % +$4.95 $ $ % +$4.60 $ $ % +$5.75 $ $ % +$6.90 $ $ % +$8.05 $ $ % +$7.70 $ $ % +$7.35 $ $ % +$7.00 $ $ % +$6.65 $ $ % +$6.30 $ $ % +$5.95 $ $ % +$5.60 $ $ % +$5.25 Per each additional $100 $1.15 NO CHANGE +$0.00 PG 18

18 Signature Confirmation Rates are changing for both and Electronic purchases, as well as for both Adult Signature options. Pricing for all categories is detailed below. Signature Confirmation for First-Class Package Service, Standard Post, Priority Mail and Package Services (Media Mail, Library Mail and Bound Printed Matter) is increasing $0.10 (3.5%) versus 2014 and will be available for $3.00 per package Electronic Signature Confirmation for First-Class Package Service, Priority Mail, Parcel Select and Package Services is increasing $0.10 (4.3%) versus last year and will be available for $2.45 per package. Adult Signature Required and Adult Signature Restricted Delivery are available for Priority Mail Express, Priority Mail, Critical Mail and Parcel Select. Adult Signature Required is increasing by $0.30 (5.8%) to $5.50. Adult Signature Restricted Delivery is increasing by $0.30 (5.5%) to $5.75. Certified Mail Certified Mail will increase by 4.5% from $3.30 to $3.45. There will also be three new options which are all priced at $8.60. Certified Mail Restricted Delivery Certified Mail Adult Signature Required Certified Mail Adult Signature Required w/restricted Delivery Certificate of mailing will increase from $1.30 to $1.35. The cost of a Return Receipt, at time of mailing, would increase from $2.70 to $2.80 ; $1.35 to $1.40 Electronic. PG 19

19 Endicia and USPS: The Right Choice for Your Package Shipments 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. 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 print shipping labels for your packages whenever it is convenient for you. Why Endicia? 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 packages. Pay-on-Use Returns. Endicia is the only electronic Postage provider to offer this money saving service. With Endicia s Pay-on-Use Returns you only pay for postage on the return shipping label if and when it is scanned in the mail stream. 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. Speedy Delivery Get packages from San Francisco to New York in 2 days with Priority Mail vs 5-6 days via private carriers (and at lower prices for certain weights). Tracking With the introduction of the Intelligent Mail Barcode (IMpb) the USPS typically has over 10 scan events per package. Endicia supports IMpb and offers online tracking, making it easy to keep an eye on packages. Flat Rate Options (domestic and international) Priority Mail flat rate boxes from USPS offer a quick, easy and convenient way to ship packages, at the most affordable price. Endicia software can help you choose the package option that is best for your business. Negotiated Pricing USPS and Endicia offer the most competitive pricing for your packages. Don t be fooled by private carrier rates that don t reflect the true price once hidden charges are included. For more information on how you can save go to for more details or contact an Endicia Sales Rep today or , x140) to learn more about how Endicia can help you save time and money. PG 20

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