As an ecommerce business owner, shipping consultant, and self-described postal nerd, I‘ve spent countless hours studying the ins and outs of USPS shipping rates. With nearly two decades of experience in the retail and logistics space, I‘ve seen firsthand how understanding USPS pricing can make or break a business‘s bottom line.
In this comprehensive guide, I‘ll share my knowledge on exactly how USPS charges for different types of packages and services in 2023. Whether you‘re a small Etsy seller shipping your first packages or a seasoned ecommerce brand moving thousands of orders per month, this post will arm you with the information you need to master your USPS shipping strategy.
USPS Shipping 101: The Basics of Rates & Services
At the simplest level, the cost to ship a package with USPS is based on these core factors:
- Shipping service – How fast do you need it to get there?
- Weight – How much does the package weigh?
- Distance – How far is the package traveling?
- Dimensions – How big is the package?
Let‘s break each of these down:
Shipping Service
USPS offers several tiers of shipping services at different price points:
| Service | Delivery Speed | Starting Price | Ideal For |
|---|---|---|---|
| First-Class Package | 1-3 days | $3.01 | Lightweight packages under 13 oz |
| USPS Retail Ground | 2-8 days | $7.70 | Economical shipping for larger packages |
| Priority Mail | 1-3 days | $7.02 | Fast shipping up to 70 lbs |
| Priority Mail Express | Overnight – 2 days | $22.75 | Fastest possible delivery |
| Parcel Select | 2-9 days | $6.92 | Slow, cheap shipping up to 70 lbs |
Pricing based on Commercial Base Rates as of January 2023. Actual prices vary by weight, size, and destination.
In general, the faster the delivery speed, the more you‘ll pay. However, as we‘ll discuss shortly, the price jump from one service to the next isn‘t always proportional to the increase in speed.
Weight
The next major factor in USPS pricing is the package weight. For most services, rates are divided into weight classes – for example, a Priority Mail package weighing 1 lb will fall into the "1 lb" rate category whether it weighs 1.0 lbs or 1.9 lbs.
Here‘s a quick example of how weight impacts Priority Mail pricing:
| Weight Not Over (lbs) | Zones 1 & 2 | Zone 3 | Zone 4 | Zone 5 |
|---|---|---|---|---|
| 1 | $7.02 | $7.38 | $7.83 | $8.26 |
| 2 | $7.64 | $8.25 | $8.65 | $9.74 |
| 3 | $8.25 | $8.76 | $10.12 | $11.73 |
| 4 | $8.71 | $9.60 | $11.25 | $13.16 |
Prices based on Commercial Base rates for Priority Mail packages up to 4 lbs
As you can see, jumping up to that next pound can add anywhere from $0.60 to $1.50+ to your shipping cost. This is why it‘s so important for ecommerce merchants to optimize their product packaging and get that weight as low as possible.
Distance
On top of weight, the shipping distance is a key factor in your USPS costs. For most services, USPS groups destinations into Zones 1 through 9 based on how far they are from the package‘s origin ZIP code. Zones 1-4 are closer, while 5-9 are considered "long distance."
You can look up a destination‘s shipping zone using the USPS Domestic Zone Chart. In general, the farther the zone, the more expensive the rate will be for that weight class.
Dimensions
Dimensional weight pricing – also known as DIM weight – is a special pricing model USPS uses for large but lightweight boxes. If a package exceeds 1 cubic feet (1,728 cubic inches), USPS will calculate its "dimensional weight" using this formula:
Length x Width x Height / 166 = Dimensional Weight
If the dimensional weight is greater than the actual weight, you‘ll be charged the dimensional weight price.
Here‘s an example: Let‘s say you‘re shipping a 20" x 20" x 15" box that weighs 5 lbs with Priority Mail. The dimensional weight would be 36 lbs (20 x 20 x 15 / 166). Since 36 lbs is more than 5 lbs, you‘d pay the 36 lb Priority Mail rate – a hefty $43.45 compared to just $10.61 for a 5 lb package!
DIM weight pricing applies to Priority Mail, Priority Mail Express, Parcel Select, and USPS Retail Ground services. It‘s meant to discourage shippers from using excessively large boxes, which take up extra truck space, and ensure USPS is compensated fairly.
One key takeaway: Whenever possible, use the smallest box that safely fits your items to avoid getting hit with dimensional weight fees. It‘s all about that length times width times height!
The Impact of Ecommerce on USPS Pricing
It‘s impossible to discuss modern USPS shipping without addressing the meteoric rise of ecommerce. As online shopping has exploded in popularity, USPS has seen a massive increase in package volume – from 3.1 billion packages in 2010 to over 7.3 billion in 2020, according to the USPS Fiscal Year 2020 Annual Report.
This surge in demand has put immense pressure on the USPS network, leading to some of the rate increases and surcharges we‘ve seen over the past decade. Between 2010 and 2020, overall USPS shipping and package revenue grew from $10.3 billion to $28.5 billion.
However, those revenues haven‘t been enough to offset the added costs of processing and delivering all those ecommerce orders. The 2020 Annual Report showed a net loss of $9.2 billion, with much of that deficit stemming from package operations.
As an ecommerce professional, it‘s important to understand that USPS shipping rates don‘t exist in a vacuum. The rates you pay are directly impacted by larger market trends, USPS‘s financial health, and legislation around postal reform. Keeping an eye on the big picture will help you anticipate and adapt to future changes.
USPS vs UPS vs FedEx: How the Carriers Stack Up
Of course, USPS isn‘t the only game in town when it comes to shipping. Its main competitors, UPS and FedEx, each have their own distinct pricing models and services. So how do the three carriers compare for ecommerce shippers?
Pricing
In general, USPS offers the lowest rates for lightweight packages under 2-3 lbs. Its First-Class Package Service can‘t be beat for shipments under 1 lb, with rates as low as $3.01.
Above 3 lbs, the carriers‘ prices start to converge, with UPS and FedEx occasionally beating out USPS on a zone-by-zone basis. However, USPS flat rate boxes are often the best value for packages up to 70 lbs if your items can fit. You‘ll pay one low price regardless of weight or destination.
For heavy parcels over 70 lbs, UPS and FedEx are the only options since USPS maxes out at 70. Their prices are pretty comparable, so it‘s worth getting quotes from both carriers.
Speed
When it comes to delivery speed, USPS is a bit slower on average compared to UPS and FedEx. Its Priority Mail service offers 1-3 day delivery vs. UPS Ground and FedEx Home Delivery‘s 1-5 day timeframes.
However, USPS does offer competitive express services with Priority Mail Express for overnight and 2-day guaranteed delivery. And with the ubiquity of USPS drop boxes and post offices, it‘s usually easier to get a package in the mail stream quickly with USPS.
Unique Services
Each carrier also has some unique offerings that set it apart:
- USPS Media Mail is the cheapest way to ship books, DVDs, and other educational materials, with rates as low as $3.19.
- UPS has a robust logistics network for international shipping and trade show services.
- FedEx offers a wide range of expedited freight services for larger shipments.
Ultimately, the right mix of carriers will depend on your unique product mix, average package weights, and customer needs. Many ecommerce brands use a combination of USPS and UPS/FedEx to balance cost and speed across their order profile.
5 Expert Tips for Optimizing Your USPS Shipping Strategy
I‘ve consulted with hundreds of ecommerce brands on designing shipping strategies that keep costs low while meeting customer expectations. Here are five of my top tips for getting the most bang for your buck with USPS:
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Use USPS flat rate boxes strategically. As mentioned, flat rate boxes offer huge savings potential for heavy items. Keep a variety of flat rate box sizes on hand to use for heavier orders. Since the price maxes out at 70 lbs, you want that box stuffed to the gills!
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Always get a SCAN form for drop-offs. If you‘re dropping packages at the post office, always get a SCAN form from the clerk to prove acceptance. This protects you in case a package gets lost or delayed in transit. For home pickups, make sure the carrier scans every piece.
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Consider cubic pricing. If you have lightweight items that you can fit into smaller boxes, look into USPS Cubic Pricing. This special program offers discounted rates for parcels that measure 0.5 cubic feet or less. The more you can fit into a small space, the more you‘ll save.
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Automate your shipping process. Shipping software makes it easy to compare rates across carriers, batch print labels, and track packages. By automating manual tasks, you can focus on running your business while ensuring orders get out the door efficiently.
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Monitor your shipping data. Knowledge is power, so dive into your shipping reports to identify trends and savings opportunities. What‘s your average shipping cost per order? Which services are you using most? Leverage that data to tweak and optimize your strategy over time.
With a little research and strategic planning, you can develop a USPS shipping strategy that keeps your costs as low as possible while still providing an exceptional experience for your customers.
The Bottom Line
I hope this deep dive into USPS shipping costs and best practices has given you a solid foundation to make informed decisions for your business. Mastering your shipping strategy is a process, but understanding these core concepts is a critical first step.
By keeping a close eye on weight and size, using the right mix of services, and leveraging tools like flat rate boxes and cubic pricing, you can build a shipping program that supports your bottom line and helps your business thrive.
As ecommerce continues to evolve, so too will the landscape of shipping – so stay informed and don‘t be afraid to adjust your approach as needed. Here‘s to your success!
