How to Get USPS Discounts and Save Money on Shipping

May 25, 2023
Written by
Anthony Robinson
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How to Get USPS Discounts and Save Money on Shipping

If you are a small business owner or an online seller, keeping shipping costs low is essential for maintaining profitability. The United States Postal Service (USPS) offers various discounts and promotions to help you save money on shipping. This comprehensive guide will explore how to get USPS discounts and maximize your shipping savings.

Why Choose USPS for Your Business Shipping Needs

Reliability and Cost-Effectiveness

USPS is renowned for its reliable and cost-effective shipping services, offering a range of options from Priority Mail to First-Class Mail tailored to your business needs. According to the USPS Business Pricing Options, businesses can choose the most suitable shipping method based on speed, cost, and package size.

Free Shipping Supplies

USPS provides free shipping supplies, including boxes, envelopes, and labels, which can significantly reduce your packaging costs. These supplies are available online through the USPS Store.

Tracking and Sustainability

All USPS packages come with tracking information, ensuring both you and your customers can monitor the progress of shipments. Additionally, USPS is committed to sustainability with initiatives aimed at reducing its carbon footprint and promoting eco-friendly practices, as detailed in their Green Initiatives.

Understanding and Accessing USPS Discounts

How USPS Discounts Work

USPS discounts provide reduced shipping rates to eligible customers, such as businesses and non-profit organizations. Discounts are generally based on shipping volume—the more packages you send, the higher the potential discount. These savings apply to both domestic and international shipments, depending on the discount type.

Types of Discounts Available

  • Commercial Base Pricing: Offers up to 16% off standard rates for customers using the USPS website or approved shipping software to print labels.
  • Commercial Plus Pricing: Provides up to 40% off for businesses shipping over 50,000 packages annually or with a volume commitment contract.
  • Cubic Pricing: Discount based on package size, ideal for small, dense packages.
  • Priority Mail Open and Distribute: Savings for businesses that presort and ship more than 50 packages to multiple destinations.
  • Regional Rate Boxes: Discounts for shipping within specific regions using USPS-provided boxes.

Additionally, USPS runs special promotions during peak seasons, such as holidays, offering further discounts or free supplies. Stay updated by regularly checking the USPS Promotions Page.

Eligibility Criteria

To qualify for USPS discounts, you must:

  • Be a small business owner or online seller
  • Ship packages regularly
  • Use USPS-approved shipping software or the USPS website to print labels
  • Comply with USPS terms and conditions

Moreover, certain discounts apply to specific types of mail, such as First-Class Mail or Priority Mail. Ensure your shipments meet USPS guidelines regarding weight, size, and destination to qualify.

Maximizing Your Savings with USPS

How to Sign Up for Discounts

  1. Create a USPS Business Account: Sign up through the USPS Business website.
  2. Apply for Discounts: Through the USPS website or approved shipping software.
  3. Submit Documentation: Provide necessary information, such as your business’s tax ID number or registration proof.

Approval may take a few days, after which you'll receive a confirmation email. Be aware that discounts are service-specific and based on your shipping volume.

Top Tips for Getting the Best Discounts

  • Ship Frequently and in Bulk: Higher shipping volumes can unlock greater discounts.
  • Use USPS-Provided Boxes: Take advantage of regional rate pricing by using standardized USPS packaging.
  • Implement Shipping Software: Utilize tools to streamline the shipping process and access commercial pricing.
  • Opt for Cubic Pricing: For small, dense packages, cubic pricing can offer significant savings.
  • Consolidate Shipments: Bundle packages when possible to reduce the number of shipments.

Additionally, consider joining the USPS Business Loyalty Program to earn rewards based on your shipping frequency and volume.

Using Shipping Software to Optimize Discounts

Shipping software helps manage and optimize your shipping processes, ensuring you take full advantage of available USPS discounts. These tools offer features such as rate comparison, batch label printing, and automated tracking updates, which can save you time and money.

Some reputable shipping software options include:

These platforms allow you to compare rates across multiple carriers, not just USPS, providing the flexibility to choose the most cost-effective shipping options for each package.

Optimizing Shipping with USPS Services

Different Shipping Options Offered by USPS

  • Priority Mail: A fast and reliable option with tracking and insurance, typically delivering within 1-3 business days.
  • First-Class Mail: Ideal for small packages under 13 oz, offering an economical solution for lightweight items.
  • Media Mail: A discounted rate for shipping media items like books and magazines.
  • Parcel Select Ground: Cost-effective for larger or heavier packages, with delivery times typically between 2-9 business days.
  • Flat Rate Boxes: Ship a variety of items at a flat rate, regardless of weight (up to 70 lbs) using USPS-provided boxes.
  • Priority Mail Express: Guaranteed overnight delivery to most US locations, suitable for urgent or time-sensitive shipments.

Choosing the right shipping option based on your specific needs can lead to substantial cost savings and improved delivery performance.

Calculating Shipping Costs

To calculate USPS shipping costs, consider package weight, dimensions, destination, and the chosen shipping service. Use the USPS Price Calculator for accurate estimates.

Keep in mind that opting for services like Priority Mail Cubic or Regional Rate Boxes can provide better rates for certain package sizes and shipping distances.

Additionally, businesses shipping in bulk may qualify for volume-based discounts, further reducing overall shipping costs.

Comparing USPS with Other Shipping Carriers

USPS vs UPS vs FedEx

When evaluating USPS discounts, it's essential to compare them with other major shipping carriers like UPS and FedEx to determine the best fit for your business needs.

USPS: Best for smaller, lightweight packages and cost-effective for domestic shipping. Offers unique services like Media Mail and Flat Rate Boxes.

UPS: Excels in handling larger packages and international shipments with reliable tracking and delivery speeds. Provides more comprehensive logistics solutions.

FedEx: Known for its extensive overnight shipping options and high reliability. Offers specialized services such as FedEx SameDay and FedEx Freight for heavy items.

Ultimately, the choice depends on your specific shipping requirements, budget, and the balance between cost and speed. Reviewing customer satisfaction ratings and service reliability can also guide your decision.

Avoiding Common Pitfalls

Common Mistakes to Avoid

  • Not Using Approved Shipping Software: Using non-approved software can disqualify you from receiving discounts.
  • Failing to Consolidate Packages: Shipping multiple small packages separately can lead to higher costs than bundling them.
  • Ignoring Package Weight and Size: Incorrectly weighing or sizing packages can result in unexpected shipping costs.
  • Choosing the Wrong Shipping Option: Selecting a more expensive service when a cheaper option would suffice increases unnecessary costs.

By being mindful of these common mistakes, you can ensure that you maximize your savings and take full advantage of USPS discounts.

Success Stories: Businesses Benefiting from USPS Discounts

Case Studies

  • BookPal: An online bookstore that saved $5,000 annually on shipping costs by utilizing Priority Mail Cubic Pricing.
  • The Better Skin Co.: A skincare company that reduced shipping expenses by 30% annually by leveraging USPS Commercial Base Pricing.
  • DHC Supply: A construction supplies business that saved $1,200 monthly on shipping costs through the use of Priority Mail Regional Rate Boxes.

These examples demonstrate how strategic use of USPS discounts can lead to significant cost savings and improved profitability for businesses.

Conclusion

Utilizing USPS discounts is a powerful strategy for small businesses and online sellers to reduce shipping costs and enhance profitability. By understanding the various discount programs, meeting eligibility criteria, and employing best practices, you can maximize your savings. Additionally, leveraging shipping software and comparing USPS services with other carriers ensures you choose the most cost-effective and efficient shipping options. Avoid common mistakes and take inspiration from successful businesses to optimize your shipping strategy effectively.

About the Author

Anthony Robinson is the CEO of ShipScience, a pioneering company dedicated to helping e-commerce leaders optimize their shipping decisions, reduce costs, and automate tedious processes. With a Bachelors Degree in Economics from Stanford University, Anthony brings over two decades of expertise in logistics, business development, and operational efficiency to the table.
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