Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue Mar 23 2021 10:40:45

Uh-oh: USPS Rate Changes Ahead

By: Ina Steiner

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The Postmaster General revealed a 10-year plan to get the Postal Service on track to "achieve financial sustainability and service excellence." The plan includes changes to take advantage of ecommerce growth, but the organization also revealed imminent rate changes, which could spell bad news for sellers.

In Tuesday's press release, the USPS wrote:

"In addition, in the coming weeks, the Postal Service will submit a number of filings with the Postal Regulatory Commission regarding pricing, products and services, and infrastructure."

That may make online sellers nervous! And as EcommerceBytes readers know, when shipping costs increase, so do marketplace fees due to their commissions on price-plus-shipping.

In addition, the press release said the USPS will make changes to meet the expanding ecommerce needs of businesses and consumers, including a new suite of services called USPS Connect, "connecting businesses, large and small, to urban and rural communities across the nation."

"The Postal Service will expand its core package products, namely Priority Mail, Priority Mail Express, First-Class Package Service and Parcel Select to offer same day, next day and 2-3 day delivery options six to seven days a week."

The USPS said other offerings will include an enhanced Informed Delivery platform, enabling business and residential users to do more, including:

- provide carriers instructions on where to leave or pick-up packages;

- notify USPS to hold mail or schedule redelivery of packages before important items reach their mailboxes.

You can find the full press release on the USPS website. Let us know what you think and what you'd like to see included, as an online seller and as a postal resident.



Comments (34) | Leave Comment | Permalink

Readers Comments

Perminate Link for Uh-oh: USPS Rate Changes Ahead   Uh-oh: USPS Rate Changes Ahead

This user has validated their user name. by: iheartjacksparrow

Tue Mar 23 12:15:21 2021

Question: Are you raising prices?

Answer: "Our Plan will utilize judicious and prudent strategies to optimize prices for our market-dominant products within applicable regulatory constraints, and by more effectively aligning prices to the marketplace for our competitive products."

That sounds like something Devin or JD would write.

I just checked my sales for the first quarter of last year versus the first quarter of this, and this year sales have gone up quite a bit despite an increase in postage costs. I wonder if collectors are no longer searching eBay first, but are now using Google or another search engine to find what they want.

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This user has validated their user name. by: Rexford

Tue Mar 23 12:29:26 2021

As long as DeJoy is part of the equation nothing good will come.  Current service is the worst that it has ever been.  Are they actually going to charge more for that?  I have also never witnessed the number of on-going price increases that I have seen in the last few years.

Sadly, when postal rates go up substantially, all the national news talks about is the penny or two stamp price increases.

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This user has validated their user name. by: toolguy

Tue Mar 23 14:03:02 2021

Once again the USPS attacks the American citizen that is already paying high prices and not the chinese.

My goal is to completely get out of online sales in 2021

Between SS, Boeing retirement and occasional swapmeets I no longer need the internet to make a living.

Perminate Link for Uh-oh: USPS Rate Changes Ahead   Uh-oh: USPS Rate Changes Ahead

by: pace306 This user has validated their user name.

Tue Mar 23 14:57:04 2021

Theres lots that need reforms in USPS, prices arent one of them ATM.

Yes prices do go up - all things do, yet USPS hasnt yet shown that it can handle what it has - giving them more money wont solve anything.

Ever go into a UPS or Fed Ex office? Its clean, there are no long lines, prices are easy to find and understand and service is timely and done with a smile.

My PO ? the clerks are few and far between (6 windows and 1 worker), there are no prices listed anywhere, supplies are almost never there, god help you if you want to get a passport and mail gets delivered "when ever".

If you want more money - fix some (not all)(maybe MOST) of these issues that regular Americans face - and then you can have more money. Until then - you dont deserve 1 nickle.

Perminate Link for Uh-oh: USPS Rate Changes Ahead   Uh-oh: USPS Rate Changes Ahead

by: terry55 This user has validated their user name.

Tue Mar 23 16:25:39 2021

Keep raising rates, Not gonna do them any good, higher prices less sales. USPS rates have double and tripled in the last 5 years, I've cut my inventory in half because of the high rates, those items wont' sell anymore. Just prepare yourself for end of the year, the USPS union contract comes up and from what my mail lady tells me its not gonna be pretty, they can strike but have to work, so I see a major blue flu breaking out

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by: Silver Ice King This user has validated their user name.

Tue Mar 23 16:44:44 2021

I am not going to waste my time reading all of that Ebay speak that the USPS seems to think will work for them now.  I only have one question and I am sure they have not addressed it although they should have when DeJoy took over as the Postmaster General, but all he seems to try and do is change things that will cost the USPS more business and help out its competitors which he happens to own a lot of stock in.

So here is my question Mr DeJoy:

Have you raised the prices on packages coming from China to comparable rates that we must pay to return the wrong shipments back to them?  Or are they still paying the same prices that they had under the UPU which was equal to what Ghana residents pay for shipping packages to us?  The UPU still considered China a 3rd world underdeveloped nation and charged them nothing to ship their items to us while forcing USA sellers to make up all the losses they are taking on packages from China.  Fix that problem and then we can talk about what might need to be changed on our side.  But until you fix that issue you need to take all of your proposed price increases and put them on the back burner as all you are going to do is lose more business which  is what you seem to be trying to do since you became the Postmaster General.

Sounds like it is time to replace you and find someone who does not have a major financial conflict of interest and also has some working knowledge of how the postal system works.

Perminate Link for Uh-oh: USPS Rate Changes Ahead   Uh-oh: USPS Rate Changes Ahead

This user has validated their user name. by: Ric

Tue Mar 23 18:13:39 2021

USPS should take a page out of the eBay/Mall Owners playbook, and charge an administrative fee for every package shipped via UPS and FedEx....
Their new motto could be ..." If it's delivered we get a cut"....  LMAO

Perminate Link for Uh-oh: USPS Rate Changes Ahead   Uh-oh: USPS Rate Changes Ahead

This user has validated their user name. by: Mighty Mouse

Tue Mar 23 22:37:10 2021

Since late last year we switched all our shipping to UPS Ground.  Yes, the pricing is a bit higher with all the residential and fuel surcharged, but we find that is works better for us.  We love the people of our local USPS people, but the policies coming from Washington is what killing them, too many chiefs and not enough Indians.

Anyway you slice it Government is not gear to be efficient and that is always going to be a problem for the USPS.  Even UPS is getting nervous with the Amazon delivery system that is now in place.  Would not be surprised if they start delivering other clients merchandise in the near future.  

Things will keep changing and the cost of shipping will keep going up, unless you have ''Free Shipping'' LOL



 

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by: I Must be Crazy This user has validated their user name.

Wed Mar 24 00:59:06 2021

I don't like the idea of more increases in postage. Just few years ago you could send an 8 oz package anywhere in the US for 1.67. It is now double that for the same package. FedEx, UPS have raised their rates to exorbitant levels as well. These increases are having a dramatic effect on what I sell and the margins realized.

Amazon got ahead of this issue by building out their own delivery network. I fully expect they will soon be in the delivery business.

Contrast that to eBay, who can't even get a simply delivery envelope program up and running properly. How embarrassing that must be for them. It really ticks me off that in all of these years, those fools couldn't come up with some way to reduce shipping costs for their sellers.

Oh well, it's their loss.

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by: Snapped This user has validated their user name.

Wed Mar 24 11:29:01 2021

Funny (not really) how DeJoy completely failed to even mention addressing the unfairly burdensome Retirement Prefunding Mandate which has done more to produce net loss than all the other factors combined.

That’s money that could be used to fund all if not more of the ‘improvements’ his questionably motivated actions planned. And he (and the Congress) would face no union opposition for eliminating it either.

Why does everybody always conveniently ‘forget’ that when these announcements ensue? Talk about your unspoken ‘ELEPHANT’ in the room....

Perminate Link for Uh-oh: USPS Rate Changes Ahead   Uh-oh: USPS Rate Changes Ahead

This user has validated their user name. by: Covid-20

Wed Mar 24 14:34:49 2021

ON ANOTHER NOTE - - - -

This is kinda off the subject . . . Has ANYONE here tried contacting Ebay customer support recently?  I am absolutely in awe at the laughable strategies they have in place.

1. 200% Non-English speaking personnel
2. ZERO managers available
3. Call backs promised and never followed through.  .  . E V E R
4. NO service within the United States / EVERYTHING farmed out foreign now.
5. Flurry of Customer service numbers via Google all now routed to automated ''Only contact us through our site from now on''  messages.

I WANT YOU GUYS TO CHECK THIS SELLER OUT!!
https://www.ebay.com/fdbk/feedback_profile/saffilms
Can you believe they allow this guy too operate with impunity??
He blatantly lists with attitude and telling you ONLY cash and checks will be accepted, but due to Ebays insane customer support tactics, No one can even report his doings!  Read his individual listing descriptions even!

The stockholders in this rats nest corporation have to be the dumbest people walking the Earth to even be manipulated into thinking this eCommerce garbage can has any growth left in it.

My selling page for the past ten months has been relegated to 2.00 and 12.00 items of garbage that is lying on the floor in my spare bedroom. Essentially ''Junk''.  Facebook Marketplace has proved 95% more successful and for free.

Rant Ended.

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This user has validated their user name. by: iheartjacksparrow

Wed Mar 24 18:20:58 2021

@Covid-20: I looked at the link you provided. That guy only has a 40% positive rating. I didn't think eBay allowed sellers that low to continue selling. I guess he only does auctions so he hasn't been snared in Mangled Payments.  

Perminate Link for Uh-oh: USPS Rate Changes Ahead   Uh-oh: USPS Rate Changes Ahead

by: Silver Ice King This user has validated their user name.

Thu Mar 25 00:09:22 2021

@iheartjacksparrow

They can take auctions in Mangled Payments as far as I know and I cannot see Ebay leaving money on the table in any form.  At this point they are not going to shut anybody down because they can access their bank accounts or their credit cards to get the funds for a refund if needed and they need their 12-15% FVF that they will keep regardless and with that rating I am sure they are also getting the 5% FVF penalty which is also another incentive for Ebay to let them keep selling.

Perminate Link for Uh-oh: USPS Rate Changes Ahead   Uh-oh: USPS Rate Changes Ahead

by: Paul W This user has validated their user name.

Thu Mar 25 00:25:26 2021

Urge your US Senators to quickly confirm Biden's nominees for the postal board of governors.  It's the only way to get rid of De (no) Joy.  Only they can fire him but the 3 nominees are needed to get that to happen.

Perminate Link for Uh-oh: USPS Rate Changes Ahead   Uh-oh: USPS Rate Changes Ahead

by: Chicago48 This user has validated their user name.

Thu Mar 25 00:26:47 2021

Time for Congress to step in.

Perminate Link for Uh-oh: USPS Rate Changes Ahead   Uh-oh: USPS Rate Changes Ahead

by: Sierra This user has validated their user name.

Thu Mar 25 00:39:28 2021

DeJoy needs to take a long walk off a short pier.  

Perminate Link for Uh-oh: USPS Rate Changes Ahead   Uh-oh: USPS Rate Changes Ahead

This user has validated their user name. by: Marie

Thu Mar 25 02:16:54 2021

@jack

Sellers can use the auction format and be in MP.  What issue do you think there is and why?

Perminate Link for Uh-oh: USPS Rate Changes Ahead   Uh-oh: USPS Rate Changes Ahead

by: Eagle This user has validated their user name.

Thu Mar 25 02:39:14 2021

I read a comment the other day about DeJoy's plan. USPS is and has been a service to the people since before we actually became a country. DeJoy wants to run it as a corporation with only goal is to make massive profits for the shareholders. Only problem is the shareholders (American citizens) only want an inexpensive and efficient service for their mail. (i.e. Quick and quicker delivery choices and undercut the other 3rd party corporate profit mail services) I don't know how everyone else feels, but we started our online ecommerce site in 2002 and USPS was running the best it ever had until DeJoy was put in charge. Since then it's ran the worst ever!

Perminate Link for Uh-oh: USPS Rate Changes Ahead   Uh-oh: USPS Rate Changes Ahead

by: Chicago48 This user has validated their user name.

Thu Mar 25 06:10:02 2021

The PO needs to move into the 21st century, which is automation, robots and AI.

Perminate Link for Uh-oh: USPS Rate Changes Ahead   Uh-oh: USPS Rate Changes Ahead

This user has validated their user name. by: epuise

Thu Mar 25 08:16:01 2021

The USPS is NOT a "Business". It is a SERVICE.
DeJoy is a clueless rich guy w/ stock in UPS & FedEx.
How about we STOP giving Amazon a 75% CUT on Rates ?

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