Pitney Bowes: New shipping and mailing rates provide opportunities for businesses to save in 2017

Pitney Bowes: New shipping and mailing rates provide opportunities for businesses to save in 2017

Pitney Bowes has advised that the recent rate increases by UPS and FedEx and the US Postal Service (USPS) rates coming into effect on Sunday (22 January) should prompt US businesses to “adopt new and innovative solutions and services to optimize sending mail, flats and parcels and save money”. In  a statement issued yesterday (19 January), Pitney Bowes commented: “In addition to maximizing shipping and mailing savings, businesses are seeking ways to better manage growing parcel volumes, which are expected to rise by 20% by 2018 according to the Pitney Bowes Parcel Shipping Index, and simplify the complexity of managing multiple carriers with different rate structures, service levels, and tracking and billing processes.”

Pitney Bowes summarised some of the key rate changes that could significantly impact businesses:

Parcel Shipping Rate Increases

  • UPS increased its U.S. Ground, Air and Freight rates by an average of 4.9 percent late last year.
  • FedEx raised its FedEx Express package and freight standard list rates by an average of 3.9 percent for U.S., U.S. export and U.S. import services and raised its FedEx Ground and FedEx Home Delivery standard list rates by an average of 4.9 percent.
  • USPS will institute an average rate increase of 3.9 percent across their domestic shipping services like Priority Mail Express, Priority Mail and Parcel Select, on Sunday (22 January).

First-Class Mail Rates Increase; But Greater Discounts Available

  • While the postage rate for USPS First-Class Mail Letters (up to 1-ounce) will increase from $0.47 to $0.49, businesses using metered mail will enjoy a rate decrease for First-Class Metered Mail from $0.465 to $0.46 today. Compared to the new non-metered rate of $0.49, that $0.03 discount represents significant savings for businesses of all sizes.

“In addition, businesses that presort their mail will also save big,” said Pitney Bowes. “The USPS’ new pricing rewards mailers that prepare their mail to the finest level. By commingling mail, presort service providers are able to reach greater density and qualify for the 5-Digit rate, which helps businesses save more on postage. Additionally, mailers that presort their First-Class volume will also be able to send up to 3.5-ounce letters for the same price as a 1-ounce letter (previously same price up to 2-ounce), allowing them to include additional inserts or other pieces with no additional cost.”

More details on these rate changes are available on Pitney Bowes Rate Change Central at http://www.pitneybowes.com/us/postal-information.html

“In this new borderless and connected world of commerce, shipping and mailing remain critical channels for businesses to compete for and serve clients remotely and connect with vendors and suppliers,” said Mark Shearer, Executive Vice President and President, Pitney Bowes Global SMB Solutions.

“With rates rising each year and a projected 20% increase in parcel shipping volume by 2018, businesses are challenged to better manage their sending operations, which includes everything an organization sends out, from parcels and overnight envelopes to bills and statements. Thankfully, there are new cloud-based multicarrier solutions available to help even the smallest shippers maximize their shipping budget to best meet their customer requirements and deliver like the big guys. For mailers, leveraging metering technology to process their mail is a no-brainer. Between the metering discount and presorting options, businesses will be able to lower their overall mailing cost and be able to do more with each mail piece.”

Pitney Bowes offered three recommendations for optimising sending operations in 2017:

  • Simplify Sending. New cloud-based sending solutions can help simplify the sending of mail, flats and parcels, gain greater control and visibility into the true cost of shipping and mailing within your organization, and qualify for discounts.
  • Meter your Mail. Using a postage meter saves 3 cents per piece for 1-2-3 ounce envelopes – up to 3.5 ounces, lowering the cost of your mail to 46 cents. This is on top of the many other benefits of metered mail, including convenience, accuracy, cost accounting, security, and payment options. The 3 cent discount also applies to mail sent using Pitney Bowes’ SendPro online shipping and mailing solution, Permit Imprints and Pre-Cancelled stamps.
  • Presort your Mail & Parcels. Presorting helps businesses qualify for significant postage discounts. Partnering with a presort services provider enables businesses to lower mailing and shipping costs, streamline operations and simplify financial reporting.


Relevant Directory Listings

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Spectos GmbH

Spectos GmbH is an independent market research and technology institute. As a market leader, Spectos offers real-time performance management solutions to postal and logistics services. Headquartered in Dresden, Germany, Spectos is specialized in measuring postal service quality according to international standards, EN 13850 and EN […]

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About The Author

Ian Taylor

Ian Taylor is the Editor of Triangle’s Mail & Express Review Magazine and the www.postandparcel.info portal. Ian has been a business journalist for almost 30 years, editing and writing for a wide range of magazines and newspapers with a particular focus on the transport and logistics industries.



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