What You Need to Know About New USPS Rates Coming July 10, 2022
The US Postal Service (USPS) has announced upcoming USPS Zip to Zone, Parcel Select Cubic pricing, and Marketing Dominant Product changes that will take effect at 12:01 a.m. EST on July 10, 2022 – but don’t fret, we’ve got all the information you need to get ahead of these changes.
What’s Changing with the USPS Rate Adjustments?
There are three parts to the upcoming USPS price change:
- Market Dominant products, which includes letters, flats, periodicals, special services, and media mail
- Competitive products – Parcel Select and PM Insurance coverage
- Zip to Zone calculation method
Changes to Market Dominant Products
While this portion of the rate change is focused mainly on non-parcel shipments , e-commerce merchants should be aware that prices for Signature Confirmation will change. For more information, please reference this USPS link.
Changes to USPS’ Competitive Product Offerings
The Postal Service is not changing prices for competitive products in this case. However, some price and classification changes are being made to Priority Mail and the Parcel Select:
- Insurance: Classification changes will be made to increase insurance to $100 for Priority Mail and to extend the inclusion of $100 in insurance to Priority Mail Returns.
- Parcel Select Cubic: Cubic pricing will be introduced for Parcel Select Ground, which means more competitive pricing for many of the parcels that qualify. You can find more details about these pricing updates here.
3 Digit-3 Digit Zip to Zone Calculation Change
With the new centroid-based 3 Digit to 3 Digit Zone Calculation, the USPS will align zone determination to the customer perspective by leveraging new technology to determine distances more precisely from an origin location to a destination location. This will change the end-to-end definition of zone determination from a historically calculated facility-based 3 Digit-to-3 Digit ZIP Code pair to a centroid-based 3D-to-3D ZIP Code pair using entry and delivery ZIP Code-based location technology.
The new zip to zone calculation changes may reduce postage costs for some shipments, while increasing costs for others. However, you should keep in mind that most shipments should not be impacted.
For more information about current domestic zones, you can reference this USPS link.
You can find more information on the USPS July 10, 2022 price change on the USPS website, and if you have any questions or concerns about these upcoming changes, please reach out to our shipping experts for more information.