posted on April 22, 2002 10:14:30 AM new
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 eBay -- a big impact on eBay 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 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 29, 2002 05:20:43 PM new
We are just getting into the online auction channel and selected USPS Priority Mail as our vendor of choice for products up to 5lbs. The free boxes are nice too!
BUT I HAD NO IDEA THAT THE RATE INCREASE WAS THIS OUTRAGEOUS. Holy moly!
I'm going to have to check into UPS a little further.
