Tips To Cut Shipping Costs - 2009 Postage Rate Increase : eBay Guides

The USPS, feeling the same pinch everyone in the nation over feels, has had to raise rates for most postage classes on May 11, 2009. As with every other business, the USPS has had to contend with fuel prices, mounting costs for labor and infrastructure, and the pressures of remaining a profitable business. And these costs have to be passed on, either through diminished service or higher prices.

A First-Class letter will start at 44 cents, up two cents from the current rate of 42 cents. Other First-Class rates are going up as well – up five cents for one-ounce parcels and five cents for large envelopes. Fees for special services are also going up – ten extra cents for Certified Mail, five cents for basic insurance and five cents for Delivery Confirmation.

This postage rate increase is focused on the mailing services – shipping rates were increase on January 18, 2009.  The U.S. Postal Service increased pricing for shipping services by an average of 5 percent.  Prices were increased for Express Mail, Priority Mail, Parcel Select, Parcel Return Service and some international shipping products.

There’s not much anyone can do to ignore the postage rate increase. Still, there is hope of your company’s budget, as the leading online postage software providers (such as Stamps.com or Endicia) can help relieve the incidental costs connected with mailing and shipping.  Here are 4 tips that online postage software can provide to help soften the effect of the new postage rates: 

Tip 1 – Online Postage Software Helps You Avoid Long Lines at the Post Office
Why waste precious fuel driving to buy stamps? Why wait at the Post Office for special services? Why haul your packages across town for a drop-off? Use online postage and have the Post Office come to you – buy postage, get popular additional services such as Delivery Confirmation and Insured Postage, and schedule a carrier pickup, all in the comfort of your home or office.

Tip 2 - Get Priority Mail Shipping Rate Discounts
If you are shipping with Priority Mail or Express Mail, you can get great discounts using online postage software that are not available with a postage meter or at the post office.   Priority Mail® shippers can save up to 11% off USPS retail rates and Express Mail shippers can save 5% off USPS retail rates when you purchase through online postage software.

Tip 3 - Free Delivery Confirmation and Discounted Package Insurance
Using online postage software can help you save even more with discounts on USPS special services.  The USPS charges 70 cents for their Electronic Delivery Confirmation service, however you can get it free with Stamps.com or Endicia for Priority Mail and Express Mail shipments.  Also, you can save 10% on package insurance compared to USPS rates.

Tip 4 - Online Postage Software Does Not Have Postage Rate Reset Costs
If you’re using an old, inefficient postal meter, you may have to pay for postage rate software upgrade.  Most postage meter companies charge a service fee for your meter to be upgraded to the new postage rates.

One bad aspect of Stamps.com or Endicia is that they charge a monthly fee (around $15 per month).  But I've found the monthly fee can be offset by the discounts you get in Priority Mail -- particularly if you ship a lot of packages.   Another HUGE savings is if you send internationally -- Stamps.com allows you to send first class international mail.   The savings from one package can pay your monthly fee.

I hope this helps lower your shipping costs!
Thanks!
Eric