Retailers to benefit from postal rate reduction

In what has been described as an historic rate reduction, the U.S. Postal Service (USPS) will roll back postage rates on April 10.

The reduction – the first stamp prices have fallen since 1919 – is prompted by the removal of the 4.3% exigent surcharge. It will apply to several mail classifications, including letters, large envelopes, flats, and postcards.

   

The changes will bring the price of First-Class stamp mail to $0.47 from $0.49; First-Class metered mail to $0.465 from $0.485; and postcards to $0.34 from $0.35. 

    

The rate structure for shipping products, including Priority Mail and parcels/packages, will not be affected.

  

“New technology is helping to reinvent mail, making it more interactive, more compelling, and more effective,” said Patrick Brand, senior VP and general manager, global SMB products and business strategy, Pitney Bowes. “Businesses can now enhance physical mail pieces with digital experiences, create more interactive and targeted direct mail, and sequence communications across multiple channels to boost impact.”

But while businesses and consumers may cheer, the U.S. Postal Service is not joining in the celebration. It’s already in bad financial shape and has warned that the reduction, which is mandated by an order from the Postal Regulatory Commission, will only worsen things.

“Removing the surcharge and reducing our prices is an irrational outcome considering the Postal Service’s precarious financial condition,” said Postmaster General and CEO Megan J. Brennan.