2022 Holiday Rate Hikes Hit USPS Shippers Harder Than Ever
Mail Service Providers on Merchant Rate Cards Dodge a Bullet!
On September 8th, 2022, the PRC approved the temporary holiday rate increases. Shippers will see an 8% average increase in postage prices compared to the year before and will have to bear the wrath of these rate hikes for longer as these changes will extend an additional month beyond the typical December 25th end date. While most USPS package shippers will be charged these extra fees, Mail Service Providers (MSP’s) partnered with My Shipping Post are going to see the largest profits on packages for the entire year and it’s happening during their busiest season!
USPS recently approved My Shipping Post to participate in a new program allowing them to offer their Mail Service Provider partners exclusive pricing on postage through what is known as a Merchant Rate Card. The Merchant Rate Card is designed to help Mail Service Providers grow their package revenues by giving them access to postage discounts below the published Cubic/Commercial Plus pricing. The Merchant Rate card will not be affected by the upcoming temporary holiday rate hikes unlocking very generous postage savings for MSP’s.
Based on historical shipping data, Mail Service Providers will see on average additional savings of $0.60 and savings as high as $1.82 below the Cubic/Commercial Plus pricing they are currently used to paying. When charging their customers Retail rates, MSP’s will generate profit margins between $1.75 – $5.88 for weight-based packages between 0 to 10 lbs within Zones 1 through 6. However, through our analysis, we have found that 90%+ of MSP daily package volume qualifies for Merchant Cubic Rates which can generate even larger profit margins. If you would like to see your exact margins, then upload your historical shipping data to My Shipping Post and calculate the profit that the Merchant Rate Card will bring to your bottom line!