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A significant increase in USPS shipping rates is schedule for May of 2007. I wrote this handout for a class I gave locally and decided to share it with other ebay users. It is incorporated in the latest revision of my ebook Powerseller Shipping Tips and Tricks.
The material in this guide is technical in nature. It isn't easy to grasp at first glance, but this change will have a very significant effect on shipping prices. The biggest change will be in prices to ship light weight but bulky packages (some of which will become so expensive to ship that it will be impractical to sell some items that must be mailed).
Who is affected? Everyone who ships via USPS
When do changes take place? Changes were proposed in 3/06 and are scheduled to go into effect in May, 2007. An exact implementation date hasn't be announced.
There is little published information about the changes so far. To find what’s available, Google the phrase USPS DIM weight, or use the search function at USPS.com. The information available at this time (2/2007) is quite sketchy and definitely NOT written for the small volume mailer. I expect that more information will come out over the next few months.
Is this just another USPS rate increase? No, this is the first time the USPS has set their rate structure to take account of the size of packages for “standard” sized packages rather than setting rates strictly based on weight. Previously, only packages large enough to qualify as “large” (combined girth plus length of over 84”) were charged a higher rate due to their size. The 2007 rate change does raise rates, but it also imposes higher rates for priority mail packages that are over 1 cubic foot in size (roughly the size of the white plastic mail bins used by USPS).
What are the changes?
1. Priority mail 1# rate (the same for all all US locations) – Increasing from $4.05 to $4.65.
2. Priority mail flat rate boxes (2 sizes, free from USPS) – Increasing from $8.10 to $8.80.
3. All other priority mail –
Priority packages going to zones 5 – 8 (roughly over 800 miles from the sender) that are over 1 cubic foot in size will be charged based on whichever yields the higher rate – their actual weight or their dimensional weight.
To determine whether the package is over 1 cubic foot, round length, height, and width to the nearest whole inch (5 ¼” is 5”; 4 ¾” is 5”). Multiply L x H x W. If the result is over 1728, the package is subject to DIM weight pricing. See next paragraph.
If the result of the above calculation is over 1728, take this result and divide by 194. The result is the DIM weight of the package. Round this up to the next whole number, and that is the number of pounds you must pay postage on.
4. Balloon rate for oversized boxes (priority mail going to zones 1 – 4 and parcel post to all zones) –
Currently any light weight box classified as a “large package” (girth plus length of 84” – 108”) is charged at the 15# rate even if it weighs only a pound or two. This will go up to 20# in May. This means that you could have to pay the 20# rate for a 1# or 2# package.
Here is an example of a large package 5# package from zip 98021 to 75206 now and in May:
Priority rate Parcel post
Standard size 11.60 9.11
Lg (84” – 108”) 23.70 18.43
In May 30.30 21.13
Oversize (109” – 130”) N/A 97.82
5. First class boxes – Currently a piece of first class mail (1 – 13 ounces) is charged by weight, whether it is a letter or a package. In May rates for first class envelopes over ¼” thick and all first class boxes will go up substantially (just about doubling for 1, 2, and 3 ounces and increasing by lower percentages for higher weights).
What to do to manage the impact of these changes:
==Use the smallest safe box.
==Buy adjustable boxes with scored tops.
==If you quote flat rate shipping in your listings, adjust the shipping prices in your listings before the changes go into effect.
==When you’re buying, give serious consideration to whether to buy a light weight item if it will require a box over 1 cubic foot in size.
The material in this guide is technical in nature. It isn't easy to grasp at first glance, but this change will have a very significant effect on shipping prices. The biggest change will be in prices to ship light weight but bulky packages (some of which will become so expensive to ship that it will be impractical to sell some items that must be mailed).
Who is affected? Everyone who ships via USPS
When do changes take place? Changes were proposed in 3/06 and are scheduled to go into effect in May, 2007. An exact implementation date hasn't be announced.
There is little published information about the changes so far. To find what’s available, Google the phrase USPS DIM weight, or use the search function at USPS.com. The information available at this time (2/2007) is quite sketchy and definitely NOT written for the small volume mailer. I expect that more information will come out over the next few months.
Is this just another USPS rate increase? No, this is the first time the USPS has set their rate structure to take account of the size of packages for “standard” sized packages rather than setting rates strictly based on weight. Previously, only packages large enough to qualify as “large” (combined girth plus length of over 84”) were charged a higher rate due to their size. The 2007 rate change does raise rates, but it also imposes higher rates for priority mail packages that are over 1 cubic foot in size (roughly the size of the white plastic mail bins used by USPS).
What are the changes?
1. Priority mail 1# rate (the same for all all US locations) – Increasing from $4.05 to $4.65.
2. Priority mail flat rate boxes (2 sizes, free from USPS) – Increasing from $8.10 to $8.80.
3. All other priority mail –
Priority packages going to zones 5 – 8 (roughly over 800 miles from the sender) that are over 1 cubic foot in size will be charged based on whichever yields the higher rate – their actual weight or their dimensional weight.
To determine whether the package is over 1 cubic foot, round length, height, and width to the nearest whole inch (5 ¼” is 5”; 4 ¾” is 5”). Multiply L x H x W. If the result is over 1728, the package is subject to DIM weight pricing. See next paragraph.
If the result of the above calculation is over 1728, take this result and divide by 194. The result is the DIM weight of the package. Round this up to the next whole number, and that is the number of pounds you must pay postage on.
4. Balloon rate for oversized boxes (priority mail going to zones 1 – 4 and parcel post to all zones) –
Currently any light weight box classified as a “large package” (girth plus length of 84” – 108”) is charged at the 15# rate even if it weighs only a pound or two. This will go up to 20# in May. This means that you could have to pay the 20# rate for a 1# or 2# package.
Here is an example of a large package 5# package from zip 98021 to 75206 now and in May:
Priority rate Parcel post
Standard size 11.60 9.11
Lg (84” – 108”) 23.70 18.43
In May 30.30 21.13
Oversize (109” – 130”) N/A 97.82
5. First class boxes – Currently a piece of first class mail (1 – 13 ounces) is charged by weight, whether it is a letter or a package. In May rates for first class envelopes over ¼” thick and all first class boxes will go up substantially (just about doubling for 1, 2, and 3 ounces and increasing by lower percentages for higher weights).
What to do to manage the impact of these changes:
==Use the smallest safe box.
==Buy adjustable boxes with scored tops.
==If you quote flat rate shipping in your listings, adjust the shipping prices in your listings before the changes go into effect.
==When you’re buying, give serious consideration to whether to buy a light weight item if it will require a box over 1 cubic foot in size.
Guide created: 02/11/07 (updated 03/16/09)
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