Shipping Discounts with USPS Connect Ecommerce
USPS made waves in the small-to-midsized ecommerce shipping world this summer by announcing the sunset of the USPS Reseller program on October 1, 2022. While the change sounded significant, it did not impact SMBs the way many feared. In fact, the end of USPS Reseller made way for new USPS shipping discounts with USPS Connect Ecommerce, its replacement program.
Today, these changes benefit ecommerce business owners and protect profit. Because many ecommerce shippers already buy postage online through shipping software such as Descartes ShipRush, Shippo, Stamps.com and others, SMBs receive savings passed on from their software provider’s partnership with USPS Connect.
Understanding USPS Connect Shipping Discounts
How do pre-negotiated USPS Connect Ecommerce rates result in shipping discounts for SMBs? Here is a small sample of cost savings
Based on data collected October 19, 2022 from USPS.
Retail Rates
First, USPS charges a retail rate, the rate SMBs pay when purchasing postage at a USPS store or from USPS.com. This postage option costs SMBs the most money and does not provide any special business-related perks. In this scenario the SMB bears the time and labor-intensive tasks associated with shopping postage, printing labels, and shipping items.
Usually, once the business starts to grow, SMBs realize paying retail rates is unnecessary and is the least cost-effective option for shipping. From there, they move into a shipping software solution which features commercial rates or other specially negotiated rates between the shipping platform and the carrier. Some software such as ShipRush requires no volume commitment, which helps businesses manage costs as they start to scale.
Commercial Rates
Separate from the retail rates, shipping software providers develop partnerships with USPS and negotiate commercial discount pricing. Because software providers attract large numbers of shippers and enable high-volume shipping, USPS provides pre-negotiated commercial rates, including rebates and the ability to avoid surcharges. For instance, ShipRush can offer up to 89% off retail rates.
Then, shipping software providers pass the savings along to their customers. The commercial rate results in cost savings for SMBs over the USPS retail rate, protecting profit and reducing the time spent searching for the most budget-friendly shipping options. Software providers already offered these rates while USPS Reseller Program was in effect, and these rates were not affected by the sunset of USPS Reseller Program.
USPS Connect Ecommerce Rates
“USPS Connect™ eCommerce makes it easier for online marketplaces and shipping platforms to work directly with the Postal Service and offer their customers access to discounted rates,” said Jacqueline Krage Strako, Chief Customer and Business Solutions Officer for the United States Postal Service. Because USPS Connect Ecommerce offers even more attractive discounts than traditional commercial rates, ecommerce shipping solutions who partner with USPS Connect can provide deeper discounts, and additional rebates on certain zones and weight classes. In this sample data set based on rates from October 2022, we see up to 8% savings above commercial rates with USPS Connect Ecommerce.
To see cost savings on shipping with USPS Connect Ecommerce, enter a sample shipment into this USPS rate calculator tool.
How ShipRush Partners with USPS Connect Ecommerce to Offer Shipping Discounts
As an online shipping platform for ecommerce, ShipRush partners with USPS Connect Ecommerce to scoop up savings for shipping customers. ShipRush customers receive deeper shipping discounts because of these main offerings from USPS Connect:
Avoiding Retail Rates
ShipRush receives special commercial rates as a USPS Connect Ecommerce partner. As a result, when ShipRush customers use the rate shopping tool, the special USPS Connect rates are already built in. Customers avoid paying retail rates simply by using ShipRush instead of shipping packages from the USPS store or USPS.com. In addition, SMBs can schedule UPSP pickups directly from the application and skip the trip to the post office.
Avoiding Surcharges
ShipRush customers will not be subject to normal USPS Peak Season surcharges on labels purchased for any of the following:
- All Priority Mail Flat Rate Envelopes & Boxes
- Majority Priority Mail Regional Rate Boxes up to Zone 6
- Majority Priority Mail Cubic rates up to Zone 6
- Majority Weight-Based shipments < 10 lbs. up to Zone 6
How ShipRush Helps SMBs with Ecommerce Shipping
By using ShipRush’s online shipping platform for ecommerce instead of shipping packages at a retail store, SMBs receive help with several key business needs:
- Approved commercial partnerships with the industry’s most important carriers, including USPS, to avoid retail shipping rates
- Save time/effort by aggregating all ecommerce platforms and shipping data in one easy-to-use program
- Save money on shipping and protect profit with discount pricing/rebates
- Gain operational efficiency with shipping and ecommerce platform integrations
- Easy rate shopping and automations to make sure shippers always receive the best shipping prices
Start Saving on Ecommerce Shipping with USPS Connect & ShipRush
SMBs can start saving money on shipping immediately by creating a free ShipRush account. Within minutes of signup, an ecommerce shipper can connect their existing ecommerce platforms and carrier accounts to start printing labels through ShipRush. Once USPS is selected to ship an order, the Connect Ecommerce rates will already be applied for the cheapest USPS shipping rates for ecommerce.
