How to Take Advantage of USPS Volume Discounts

September 27, 2024
by Anthony Robinson

The United States Postal Service (USPS) offers volume discounts to businesses that frequently ship large quantities of mail. If you are a business owner shipping a high volume of mail, taking advantage of these discounts can lead to significant savings. In this article, we will explain what USPS volume discounts are and how you can qualify for them.

Understanding USPS Volume Discounts

USPS volume discounts are discounts that are given to businesses based on the amount of mail they ship. These discounts are designed to incentivize businesses to ship more mail, which saves the USPS money by streamlining their mail processing and delivery systems. In turn, the businesses receive savings on their mailing costs.

The amount of savings a business can receive through USPS volume discounts depends on the volume of mail they ship. The more mail a business ships, the higher the discount they can receive. For example, a business that ships 500 pieces of mail per day may receive a 5% discount, while a business that ships 5,000 pieces of mail per day may receive a 15% discount.

It's important to note that USPS volume discounts are only available to businesses that meet certain criteria. For example, businesses must have a valid USPS business account and must meet minimum volume requirements. Additionally, businesses must meet certain mailing standards, such as using USPS-approved mail trays and properly addressing their mail.

Benefits of USPS Volume Discounts

There are several benefits to taking advantage of USPS volume discounts. The most obvious benefit is cost savings on mailing expenses. Depending on the volume of mail you send, you could save anywhere from a few dollars to thousands of dollars a year. In addition to cost savings, shipping with USPS offers reliable and efficient service, with delivery to almost every address in the US, including PO boxes and military addresses.

Another benefit of USPS volume discounts is the convenience of their online tools and resources. With USPS, you can easily print shipping labels, track packages, and schedule pickups from your home or office. This saves time and eliminates the need to make trips to the post office. Additionally, USPS offers a variety of shipping options, including priority mail, first-class mail, and media mail, allowing you to choose the best option for your specific needs.

Finally, using USPS volume discounts can also help improve your business's reputation. By offering reliable and efficient shipping, you can increase customer satisfaction and loyalty. Customers appreciate timely and accurate deliveries, and USPS can help you achieve this. Plus, with the cost savings from volume discounts, you can reinvest in your business and offer even more value to your customers.

Who is Eligible for USPS Volume Discounts?

Businesses that ship large quantities of mail are eligible for USPS volume discounts. To qualify for the discounts, you will need to have a USPS business shipping account, which you can sign up for on the USPS website. For certain discounts, you may need to meet a minimum mailing threshold.

It's important to note that the USPS volume discounts are not limited to just domestic shipping. Businesses that frequently ship internationally can also take advantage of discounted rates. Additionally, the USPS offers discounts for certain types of mail, such as Priority Mail and First-Class Mail. These discounts can vary depending on the volume and type of mail being shipped, so it's important to regularly review your shipping needs and adjust your USPS account accordingly to maximize your savings.

How to Qualify for USPS Volume Discounts

To qualify for USPS volume discounts, you will need to meet certain criteria depending on the specific discount program. Some programs may require that you regularly ship a minimum volume of mail, while others may require that you use specific mailing services, such as Priority Mail or First-Class Mail. Be sure to check the requirements for each program to see if you qualify.

Additionally, some USPS volume discount programs may require that you use specific mailing software or online tools to prepare and submit your mailings. This can include using USPS-approved software to print shipping labels and postage, or using the USPS website to schedule pickups and track your shipments. It's important to familiarize yourself with the requirements of each program and ensure that you have the necessary tools and resources to meet them.

Types of USPS Volume Discounts

There are several types of USPS volume discounts available. The most common discounts include Commercial Base Pricing (CBP), Commercial Plus Pricing (CPP), and Negotiated Service Agreements (NSAs). CBP is available to businesses that enroll in the USPS business shipping account, while CPP is available to businesses that meet a certain volume threshold and enroll in the CPP program. NSAs are customized agreements negotiated between the USPS and businesses that ship large volumes of mail.

In addition to these discounts, USPS also offers a Priority Mail Open and Distribute service for businesses that send large quantities of mail to multiple destinations. This service allows businesses to send bulk shipments to a USPS facility, where the mail is then sorted and sent to individual addresses at a discounted rate. This can be a cost-effective option for businesses that regularly send out large mailings, such as catalogs or promotional materials.

How to Calculate Your Savings with USPS Volume Discounts

To calculate your potential savings with USPS volume discounts, you will need to take into account your current mailing expenses and compare them to the volume discounts available to you. The USPS website provides a postage calculator tool that can help you estimate the cost of shipping your mail. You can also speak with a USPS representative to get a more accurate estimate of your potential savings.

It's important to note that USPS volume discounts are based on the amount of mail you send, so the more you send, the greater your potential savings. Additionally, USPS offers different types of discounts, such as Commercial Base Pricing and Commercial Plus Pricing, which have different eligibility requirements and discount levels. It's important to research and understand which discounts you qualify for and how much you can save with each one.

Tips to Maximize Your Savings with USPS Volume Discounts

To get the most out of your USPS volume discounts, there are a few tips you should keep in mind. First, make sure you are using the right mailing services to qualify for your desired discount program. Additionally, consolidating your shipments and using flat-rate boxes can help you save money on postage. Finally, consider using USPS shipping tools, such as Click-N-Ship or Automated Postal Center machines, to streamline your mailing process and save time.

Another way to maximize your savings with USPS volume discounts is to take advantage of their online shipping discounts. By using USPS.com to purchase and print your postage, you can save up to 16% on Priority Mail and up to 60% on Express Mail. This can add up to significant savings over time, especially if you frequently ship packages.

It's also important to stay up-to-date on USPS pricing changes and promotions. The USPS regularly offers discounts and promotions for certain mailing services or during specific time periods. By keeping an eye out for these opportunities, you can save even more on your postage costs.

Common Misconceptions About USPS Volume Discounts

There are several misconceptions about USPS volume discounts that are important to dispel. One common misconception is that volume discounts are only available to large corporations. In reality, businesses of all sizes can qualify for volume discounts, and small to medium-sized businesses can often benefit the most from these discounts.

Another common misconception is that volume discounts are only applicable to certain types of mail, such as first-class or priority mail. However, volume discounts are available for a wide range of mail classes, including standard mail, periodicals, and package services. This means that businesses can save money on a variety of mailing needs, not just on specific types of mail.

It is also important to note that volume discounts are not a one-size-fits-all solution. The amount of discount a business can receive depends on several factors, such as the volume of mail being sent, the frequency of mailings, and the type of mail being sent. Therefore, it is important for businesses to work with a USPS representative to determine the best discount program for their specific needs.

How to Apply for USPS Volume Discounts

To apply for USPS volume discounts, you will need to create a USPS business shipping account and enroll in your desired discount program. You can apply for discounts on the USPS website or speak with a USPS representative to get more information.

How to Manage Your Account and Orders with USPS Volume Discounts

Once you have enrolled in a USPS volume discount program, you will need to manage your account to ensure that you are meeting the criteria for the discount. This may involve adjusting your shipping practices or monitoring your shipping volume. Additionally, using USPS shipping tools, such as the USPS mobile app, can help you manage your account and orders more efficiently.

Case Study: A Business's Success Story Using USPS Volume Discounts

One example of a business that has successfully used USPS volume discounts is a small online retailer that specializes in handmade goods. By consolidating their shipments and using flat-rate boxes, they were able to significantly reduce their mailing costs. Additionally, they were able to qualify for a Negotiated Service Agreement that allowed them to save even more money on shipping. As a result, they were able to reinvest the money they saved back into their business and expand their product line.

Future Trends in USPS Volume Discounts

The USPS is always looking for ways to improve their services and incentivize businesses to use their mailing services. In the future, we may see new volume discount programs introduced, as well as changes to the existing programs. It's important to stay informed of these changes to ensure that you are getting the most out of your mailing expenses.

Alternatives to USPS Volume Discounts

While USPS volume discounts can be a great way to save on mailing expenses, there are other shipping options to consider. Competitors such as UPS and FedEx offer various shipping services with different pricing structures that may be better suited for your business needs. Be sure to research all of your options before deciding on a shipping provider.

Conclusion: Why You Should Take Advantage of USPS Volume Discounts

As a business owner, taking advantage of USPS volume discounts can lead to significant savings on mailing expenses. By qualifying for these discounts and using USPS for your shipping needs, you can save money while enjoying reliable and efficient service. Make sure to research the available discount programs and follow the tips we've provided to maximize your savings. With the right approach, USPS volume discounts can be a valuable tool for your business.

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 Bachelor of Science in Economics from Stanford University, Anthony brings over a decade of expertise in logistics, business development, and operational efficiency to the table.

Since founding ShipScience in 2018, Anthony has empowered numerous e-commerce businesses to navigate the complexities of parcel shipping through data-driven insights and innovative solutions. His leadership extends beyond ShipScience, having established Refund Geeks and served on advisory boards at Ciye and RESA Power, showcasing his commitment to driving corporate growth and enhancing operational strategies.

Anthony is passionate about leveraging technology to streamline supply chains and improve customer experiences in the last mile. When he’s not strategizing shipping solutions, he enjoys connecting with industry leaders and staying ahead of the latest trends in e-commerce and logistics.

Connect with Anthony on LinkedIn to learn more about his work and insights on optimizing shipping for e-commerce businesses.

Revolutionize your parcel shipping strategy.

Get a free analysis
© Copyright 2024 ShipScience.com. All Rights Reserved.  Terms of Use  |  Privacy