USPS Proposal Would Let It Increase Rates for Parcel Post

[iwiw60]

USPS Proposal Would Let It Increase Rates for Parcel Post
By Ina Steiner
EcommerceBytes.com
May 09, 2012

On April 26, 2012, the Postal Service filed a notice with the Postal Regulatory Commission requesting that Parcel Post service be moved from the market dominant list to the competitive product list, which would give it more flexibility in raising rates. The Postal Service estimates that only 15 percent of Parcel Post's volume is attributable to small businesses.

There are two different processes by which the USPS can raise rates - one for market dominant services, such as First Class mail, and another for competitive services, such as Priority Mail and Express Mail. The USPS is restricted from increasing prices for market dominant services above the Consumer Price Index, according to the Postal Law of 2006.

The USPS said Parcel Post is an economical ground package delivery service for less-than-urgent and oversize packages that competes with comparable products offered by competitors, and asserts that Parcel Post fulfills all criteria for competitive products under postal regulation 39 U.S.C. 3642.

The USPS said it recognizes that a price increase would be necessary "to ensure that Parcel Post covers its attributable costs and prohibits market dominant products from subsidizing competitive products."
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Seems now that people are using Parcel Post more and more with all these price increases they now want their "piece of the pie" on Parcel Post, too.....aaaaaaaack!! Just MHO

[lilused]

Raise Parcel Post again? They just did. Just mailed a package that weighed the exact same amount, sent parcel post, as I did a while back and cost me %50 more. Sure is taking a bite out of USA sales, for me anyway. Buyers do not want these high postal rates, and neither do sellers.

[MegaClap]

USPS has some serious problems. It's getting to the point where their pricing is not far from UPS and FedEx.

If the price is comparable between the three, USPS is going to have a hard time keeping up. Their customer service is horrible and their tracking system is a joke, in fact the only reason I ship with them is the price.

[darklisruthven]

sounds like they are trying to copy Royal Mail

[elpereles2]

I use primary USPS Priority Mail for Domestic mail. But other sellers use it. If prices increase for Parcel for the US Continental States is clear that maybe some people will prefer to try UPS and Fedex. I don't thing so the same for sellers in Alaska, Hawaii, and US Territories.

But as far I noted UPS and Fedex increase their rates the same time as USPS. So it means that will be an increase for the similar parcel service in these companies. They must be angry with the USPS because in my opinion they want to see it dead or under their control and not see their fees controlled by the USPS "monopoly".

[JaBek1]

I use primary USPS Priority Mail for Domestic mail. But other sellers use it. If prices increase for Parcel for the US Continental States is clear that maybe some people will prefer to try UPS and Fedex. I don't thing so the same for sellers in Alaska, Hawaii, and US Territories.

But as far I noted UPS and Fedex increase their rates the same time as USPS. So it means that will be an increase for the similar parcel service in these companies. They must be angry with the USPS because in my opinion they want to see it dead or under their control and not see their fees controlled by the USPS "monopoly".

Actually, the rates should include Alaska, Hawaii and US Territories. It would depend upon where one was located as to which zone they would be in. They couldn't be any more than a Zone 8.

I'm not sure that USPS can be called a monopoly since they operate as a governmental agency although I could be wrong. They were, of course, at one time a government department under the full control of the US government and their employees were all civil servants.

[elpereles2]

"iHEARTcartoons: USPS has some serious problems. It's getting to the point where their pricing is not far from UPS and FedEx."

@JaBek1, I know that USPS prices increases for every "Zone". My comment was about "iHEARTcartoons" reply.

Beacuse as far I checked the UPS and Fedex prices. These companies have good deals for the 48 Continental States, but for Alaska, Hawaii, and US Territories the prices for the "common" people are really high. Last time I checked the UPS to send from Puerto Rico to US continental was near 2 time the price of USPS Priority Mail. Meanwhile continental was no so far in difference. So obviously no matter the increase if you ship or send from outside 48 continental states, the USPS Parcel will be the choice.

[JimmyCee]

Referring to continental U.S. service
U.S.P.S. service is and most likely will remain better pricing than UPS.
Compare your shipping cost between the 2.
Just last week I shipped 4 packages via Priority Mail, saved my customers $20 - $25.
I don't like it any more that others, however may as well accept it.