posted on April 22, 2002 10:07:17 AM
As most are aware, the Postal Service has a rate-hike plan set to begin June 30. What you might not be aware of is the huge priority mail 2-5 pound rate hike built into this plan. The USPS has intentionally focused attention on the 10% increase in 1 oz. first-class and 1 pound priority rates, and the "average" 13.5% increase in overall priority rates, but has intentionally downplayed the huge rate increase in 2-5 pound priority mail -- the most frequently used class of mail.
Currently, in the 2-5 pound class, the rate per-pound is the same regardless of postal zone. For example, 3 pounds (typical shipping weight for a book) is $5.20 from Zone 1 to Zone 8. At 6 pounds and above, the rate is zoned. Under the new rate plan, weights from 2-5 pounds will now be zoned as well, with only the 1 pound rate constant across all zones. Using the 3 pound example above, the new rate will range from $4.85 in Zones 1-3 (basically your state and some surrounding states) to $8.55 for Zone 8. This represents an incredible 64% rate increase for Zone 8. Since we're in the Southwest, and most of our shipments go to the coasts. we're going to get hit with this a lot. The same is true across the 2-5 pound rate scale, which as most of us know is the most common range of weights for items sold on eBay. You can see the rate plan at usps.gov and see how this affects you.
This is an unconscionable rate increase in this economy. As distressing as the USPS' underhanded sneakiness in this rate increase is, even more distressing is that big shippers get a huge discount on postal rates and are actually lobbying FOR this rate increase to put the squeeze on small sellers and businesses like us.
Just figuring the shipping on any particular item is going to be a mess, because in every case we'll need to get the buyer's zip code first. And buyer's are going to balk when you tell them shipping on a book is going to be $8.55. This is going to have a huge impact on us as sellers and -- listen up AW and eBay -- a big impact on site revenue as high shipping costs drive buyers away.
The good news is that this rate plan is not cast in stone -- yet. It is due to be published May 6, and then it will be cast in stone. If you are a USPS shipper and you oppose a 64% rate increase, contact the Postal Rate Commission, your senators and representatives, the U.S. Chamber of Commerce, local and national media, and anyone else you can think of who is in a position to fight this increase. Also, point out to AW, eBay and other sites you deal with that this increase is contrary to their interests and encourage them to join the fight against it.
Finally, if you think this topic is important enough, please keep it alive with an occasional bump.
posted on April 22, 2002 01:38:30 PM
I agree, when I first saw this , I Thoght "Oh Boy", this is Not going to Help eBay Business , and it won't, Unless you deal in 1lb or less.
posted on April 22, 2002 02:37:37 PM
Here's another big secret- Priority mail isn't guaranteed to reach destinations in 3 days. Priority is no better service than First Class - it just costs more.
I send everything First Class which has a 3-5 day delivery window, which is the same as Priority. Of course there is always the free boxes, which you are actually paying for.
Priority mail will go down in the books as one of the best marketing ploys in history. My First Class package is shipped right along side your Priority package, but for less cost to me.
Thanks for that information! I understand that these rates will be effective June 30. I didn't realize that 2-5 pound priority mail will be priced by zone.
posted on April 22, 2002 02:56:37 PM
13 oz is the limit, but the PO even puts out a Priority envelope for documents, and you'd be surprised how many people use them.
If it's a single item over 13 oz, you're stuck or go Parcel post.
But it is cheaper to spit up an order if you can and send First Class.
posted on April 23, 2002 09:38:02 AM
With UPS and Fedex, I expect USPS to go bankrupt within a year. This will requires the government to pony up a multi-billion dollar bailout, a higher tax on third party parcel delivery services,.....a another giant rate increase.
posted on April 23, 2002 10:23:56 AM
If it is over 13oz, you can always send it by Parcel Post.
Actually, for all of you freaks that think about just how wondefull it would be to sell off every function of our federal government to Big Business and just how wonderfully effecient they would be, here's your chance to examine the system up close.
What? You say that you aren't aware that the United States Postal Service is a PRIVATELY OWNED BUSINESS, just like your little business there on eBay? Oh, please, don't post on here about how the postal sevice is owned and operated by the government - it isn't and it hasn't been since the early 1970s.
So, what it boils down to is that the USPS is a privately owned business with the power to Tax in order to GUARANTEE themselves a Profit! Oh sure, rate incrases have to go through an oversight panel. But we all know how that's worked over the years (nod, nod, wink, wink). I say, REVOKE THE USPS CHARTER AND GIVE IT BACK TO GOVERNMENT!
posted on April 23, 2002 10:41:00 AM
If the USPS doesn't get the changes it recently asked Congress for, it may indeed go back under the Federal Budget.
Being projected at something like $3 billion in the red, they want to be able to set rates and contracts without an oversight committee, close and/or consolidate offices without Congress oversight- everytime they try to close an office, the local Congressman stops it.
posted on April 23, 2002 01:16:00 PM"...everytime they try to close an office, the local Congressman stops it."
And THAT is exactly why the US Postal Service should go back to the public sector. The US Postal Service is set up for OUR conveinence, so that EVERYONE has Access to the postal service, no matter how forlorn the outpost or settlement may be! That's what taxes are for! Taxes ARE NOT to ensure that a PRIVATELY OWNED BUSINESS makes a damned PROFIT! This OUR postal system! If the owners of the US Postal Service don't like it, they can buy Federal Express and RISK THEIR PROFIT MARGINS like everyone else!
Once its out of even that tacit of groups, the oversight committee, the United States of America will no longer have a postal system!
I say: Buy the jerks out, and take back our postal system! Yes, I recall what HELL the postal service was before it was SOLD OFF! But at least you were GUARANTEED CHEAP POSTAL SERVICES!
sp.
[ edited by Borillar on Apr 23, 2002 01:19 PM ]
The U.S. Postal Service is in the public sector and is not privately held in any way.
The Postal Reorganization Act of 1970 merely gave them the opportunity to operate as a self supporting agency within the federal government so that the political influences would be in some large measure removed from them. The act came as part of a response to a nationwide postal employee work action, a strike, in which employees asked for comparable pay and benefits to workers doing similar jobs in the private sector. The service was given the freedom it needed to generate it's own operating expenses and as a part of the freedom was directed to achieve parity of pay and benefits in it's workforce.
Labor costs are the biggest portion of their costs by a large margin, but the reason that they so often go into deficit operations - run in the red- is that the congress has been able since the early 80s to demand a large portion of any postal 'profit' which they do with regularity at the end of each fiscal year causing the service to have to continue to cut services if possible, and to raise fees.
It can be said that the postal service operates LIKE a privately held corporation but in truth it is not. Postal paychecks are cut at the government finance center in St. Louis just like those of every other federal employee.
This particular rant, and this one only, is misguided.
posted on May 14, 2002 10:59:00 AM
I ship 4 to 600 priority package per year from my eBay sales. These new zones are going
to be a real problem for me . Also this problem goes way beyond the 5 pound mark. If I
were to ship a 50 pound priority package to zone 8 ( west coast for me) it would be
$ 87.95 but in my zone $ 28.95 WOW . Now I do not ship a lot of heavy packages except
around the holidays but what a mess. I do not have the time to figure out the postage
costs after all my auctions plus it will slow down everything. How many of you are paid
right after the auction ends? I average 25 % paying with in a couple of hours of closing
before I send a notice out.
If all us small shippers emailed the postal service to tell them goodbye maybe they will
have a change of heart. So do the good old American thing- email or snail mail the postal
service, maybe some fool at the postal service will see the error in their ways !!!!!!!!!!!!
