If you're looking to streamline your business's shipping process and save money on the costs of shipping, you may be wondering if USPS Commercial Plus Pricing is right for you. In this comprehensive article, we will explore everything you need to know about USPS Commercial Plus Pricing: from what it is and how it can benefit your business, to how to qualify and sign up, as well as tips for maximizing your savings.
What is USPS Commercial Plus Pricing?
USPS Commercial Plus Pricing is a discounted shipping option offered by the United States Postal Service (USPS) for businesses that ship a large volume of mail or packages. The pricing structure is geared towards medium to large-sized businesses who meet certain volume requirements and use USPS approved shipping solutions, such as online shipping software or third-party logistics providers.
One of the benefits of using USPS Commercial Plus Pricing is that businesses can save money on shipping costs, which can be a significant expense for companies that ship frequently. The discounts offered through this program can range from a few cents to several dollars per package, depending on the weight, destination, and shipping method.
In addition to cost savings, USPS Commercial Plus Pricing also offers businesses access to additional shipping services, such as free package pickup, free delivery confirmation, and free insurance coverage up to a certain amount. These services can help businesses streamline their shipping processes and provide added peace of mind when sending important packages or documents.
The Benefits of USPS Commercial Plus Pricing
When you qualify for USPS Commercial Plus Pricing, you can take advantage of several benefits such as:
- Lower prices for shipping - Commercial Plus Pricing offers lower prices compared to the standard USPS Retail Prices.
- Streamlined shipping process - Commercial Plus Pricing allows businesses to manage their shipping process more efficiently with online shipping solutions.
- Access to additional services - Businesses that qualify for Commercial Plus Pricing can access additional services like Priority Mail Express Open and Distribute, which allows for faster delivery and improved tracking options.
Moreover, businesses that qualify for USPS Commercial Plus Pricing can also benefit from the Commercial Base Pricing (CBP) rates. CBP rates are discounted rates that are available to businesses that use USPS-approved shipping software to purchase postage online. These rates are lower than the standard retail rates, but not as low as the Commercial Plus Pricing rates. By using CBP rates, businesses can still save money on shipping costs while enjoying the convenience of online postage purchasing.
How to Qualify for USPS Commercial Plus Pricing
To qualify for USPS Commercial Plus Pricing, businesses must meet certain volume requirements and use USPS approved shipping solutions such as online shipping software or third-party logistics providers. The volume requirements for Commercial Plus Pricing are:
- 150,000 First Class Mail pieces per year
- 5,000 Priority Mail pieces per year
- 50,000 Standard Mail pieces per year
Businesses that meet the volume requirements must then sign up for a USPS Commercial Plus Pricing account through their approved shipping solution. To sign up, businesses will need to provide their contact information, business details, and meet USPS approval requirements.
Once a business has signed up for a USPS Commercial Plus Pricing account, they can start taking advantage of the discounted rates. These rates can save businesses up to 40% on Priority Mail and up to 20% on First Class Mail and Standard Mail. This can result in significant savings for businesses that ship large volumes of mail.
It's important to note that businesses must maintain the volume requirements in order to continue receiving Commercial Plus Pricing. If a business falls below the volume requirements, they may be moved to a different pricing tier or lose their Commercial Plus Pricing account altogether. Therefore, it's important for businesses to regularly monitor their shipping volume and adjust their shipping strategy as needed to maintain their eligibility for Commercial Plus Pricing.
USPS Commercial Plus Pricing vs Retail Pricing: What's the Difference?
One of the main differences between USPS Commercial Plus Pricing and retail pricing is that Commercial Plus Pricing offers discounted prices for businesses that meet the volume requirements and use approved shipping solutions. The specific discounts and rates depend on the package weight, shipping distance, and shipping speed.
On the other hand, retail pricing is the standard pricing structure offered by USPS for individuals or businesses that don't meet the volume requirements or use approved shipping solutions. Retail prices are usually higher than Commercial Plus Pricing.
Another difference between Commercial Plus Pricing and retail pricing is the level of customer support provided. Businesses that qualify for Commercial Plus Pricing have access to a dedicated account manager who can assist with shipping needs and provide personalized support. Retail customers, on the other hand, have access to general customer service representatives who may not have the same level of expertise or ability to provide tailored solutions.
Understanding the Tiered Structure of USPS Commercial Plus Pricing
USPS Commercial Plus Pricing has a tiered pricing structure that offers different discounts based on the volume of package mailings made by businesses. The pricing tiers for 2021 are as follows:
- Priority Mail Express: Tier 1 (0-99,999 pieces) and Tier 2 (100,000+ pieces)
- Priority Mail: Tier 1 (0-49,999 pieces), Tier 2 (50,000-249,999 pieces), Tier 3 (250,000-999,999 pieces), and Tier 4 (1,000,000+ pieces)
- First-Class Package Service: Tier 1 (0-99,999 pieces), Tier 2 (100,000-499,999 pieces), and Tier 3 (500,000+ pieces)
- Parcel Select Ground: Tier 1 (0-99,999 pieces) and Tier 2 (100,000+ pieces)
The specific discounts and rates for each tier vary depending on the weight and shipping distance of the packages.
It's important to note that businesses must meet certain requirements to qualify for USPS Commercial Plus Pricing. These requirements include a minimum volume of package mailings and the use of specific shipping labels and software. Additionally, businesses must apply for Commercial Plus Pricing and be approved by the USPS before they can start receiving the discounted rates.
How to Calculate Shipping Costs with USPS Commercial Plus Pricing
Calculating shipping costs with USPS Commercial Plus Pricing often requires using an approved shipping solution, such as shipping software or a third-party logistics provider that integrates with USPS Commercial Plus Pricing. These solutions offer more accurate and streamlined pricing calculations based on the specific package weight, dimensions, shipping destination, and shipping speed.
Some online shipping software can help businesses determine if they qualify for Commercial Plus Pricing by analyzing their shipping volume and providing access to the prices available under Commercial Plus Pricing. Additionally, businesses should keep in mind factors like package weight, shipping distance and speed, and the volume of packages shipped to ensure they are receiving the most cost-effective shipping rates.
Another important factor to consider when calculating shipping costs with USPS Commercial Plus Pricing is the type of package being shipped. USPS offers different pricing options for different types of packages, such as flat rate boxes, regional rate boxes, and cubic pricing. Businesses should evaluate their shipping needs and determine which pricing option is most cost-effective for their specific package type and shipping volume.
It is also important to note that USPS Commercial Plus Pricing is only available to businesses that meet certain volume requirements. Businesses must ship a minimum of 5,000 packages per year to qualify for Commercial Plus Pricing. If a business does not meet this requirement, they may still be eligible for other USPS pricing options, such as Commercial Base Pricing or Retail Pricing.
Tips for Maximizing Savings with USPS Commercial Plus Pricing
Here are some practical tips for businesses looking to make the most of their savings with USPS Commercial Plus Pricing:
- Consolidate and batch shipments to achieve a higher volume, which can qualify businesses for better tiered pricing discounts.
- Compare shipping rates from different carriers to ensure the best rate for each specific package and shipping destination.
- Use an online shipping software or a third-party logistics provider that integrates with USPS Commercial Plus Pricing for more accurate and streamlined pricing calculations.
- Use USPS Priority Mail Flat Rate boxes for packages that fit in the boxes and weigh less than 70 pounds, since the flat-rate pricing can be more cost-effective than weight-based pricing.
Another way to maximize savings with USPS Commercial Plus Pricing is to take advantage of USPS's free package pickup service. This service allows businesses to schedule a pickup of their packages directly from their location, saving time and money on transportation costs.
Additionally, businesses can save money by using USPS's Regional Rate boxes, which offer discounted rates for packages that are shipped within a specific region. These boxes are available in different sizes and can be a cost-effective option for businesses shipping heavier items.
Common Myths and Misconceptions about USPS Commercial Plus Pricing
Some common misconceptions about USPS Commercial Plus Pricing include believing that it's only for large businesses or that the approval process is lengthy and complicated. However, Commercial Plus Pricing can benefit businesses of various sizes and the sign-up process is often straightforward using an approved shipping solution.
Comparing USPS Commercial Plus Pricing with Other Shipping Options
USPS Commercial Plus Pricing is just one shipping option available to businesses. Other options include FedEx and UPS. However, USPS can often offer lower shipping rates for lightweight packages and could be a more cost-effective option for some businesses. Businesses should compare rates and analyze which option makes the most sense based on their package shipping volume, weight, distance, and speed.
How to Sign Up for USPS Commercial Plus Pricing
To sign up for USPS Commercial Plus Pricing, businesses must first meet the volume requirements and use an approved shipping solution. Once the requirements are met, businesses can sign up for an account through their approved shipping solution or USPS online.
Companies will need to provide the following information at sign-up:
- Contact Information
- Business Details
- USPS Approval Requirements
Case Studies: Real-Life Examples of Businesses Saving with USPS Commercial Plus Pricing
Various case studies have shown how businesses can benefit from using USPS Commercial Plus Pricing. For example, a small retail business was able to save over $10,000 annually by switching to Commercial Plus Pricing and consolidating their shipping strategies. In another example, a large manufacturer was able to save over $300,000 by utilizing Commercial Plus Pricing and adjusting their shipping volume and strategies.
These case studies demonstrate how businesses can save significant amounts of money by using USPS Commercial Plus Pricing and taking advantage of the tiered pricing structure, consolidating shipments, and using approved shipping solutions.
Conclusion
USPS Commercial Plus Pricing is a valuable shipping option for businesses that meet the volume requirements and use approved shipping solutions. By taking advantage of the tiered pricing structure and other benefits like streamlined shipping processes, businesses can realize significant cost savings on their shipping expenses. Whether you're a small retail business or a large manufacturer, USPS Commercial Plus Pricing is worth considering as a cost-effective and efficient shipping solution.
