Is USPS Worth It for Small Businesses in 2024? (FAQs Answered)

ByCharles Scott Last Update on

As a small business owner, you likely explore every opportunity to save money. Is using the United States Postal Service (USPS) instead of pricier carriers like FedEx or UPS worth considering?

I‘ve shipped thousands of ecommerce packages over the years. Here‘s my insight into key questions small business owners have around using USPS today.

What is the Cheapest Way to Ship with USPS?

For lightweight packages under 1 lb, First Class Package Service offers the most affordable rates. As of January 2023, prices start at just $4.95 for the first 1 oz package:

WeightStarting Rate
1 oz package$4.95
8 oz package$5.66

While First Class used to only handle letters and postcards, it now works for boxes up to 15.99 oz. Delivery speeds are similar to Priority Mail with 1-3 days.

For heavier packages between 1-70 lbs, your most affordable option is Retail Ground at $9.60 for a 5 lb package. Just keep in mind delivery will take 2-8 business days based on distance.

Do Small Businesses Qualify for Commercial Pricing?

Yes! If your business sends at least 500 letters or 200 packages per year, you likely qualify for USPS Commercial Base rates. This provides between 10-40% discounts compared to published retail prices.

The process involves applying for a permit, paying an annual presort mail fee, and dropping your packages at a local Business Mail Entry Unit. But the time and effort pays off handily through ongoing postal discounts.

What Other Ways Can Small Businesses Save?

Beyond First Class and Commercial Pricing, here are 3 additional ways to keep shipping costs low with USPS:

  • Use free USPS packaging like Priority Mail boxes and envelopes whenever possible
  • Compare rates across USPS, UPS, FedEx, and regional carriers for each package
  • Sign up for USPS Informed Delivery to conveniently track incoming mail

The Bottom Line: Is USPS Still Worth It?

While USPS has a reputation for slower delivery speeds compared to rivals, they offer hard-to-beat rates – especially for lightweight, small packages. Commercial pricing unlocks further discounts for high-volume shippers.

So if saving money is your priority, USPS remains a valuable shipping partner for many ecommerce businesses and online sellers!

Charles Scott is a dynamic professional whose academic and career achievements demonstrate a strong commitment to excellence in the retail and consumer service industry. Graduating with an MBA from New York University in 2013, Charles has built a diverse and impressive career portfolio. He has held significant roles as a manager, advisor, and marketer, showcasing his multifaceted skills and deep understanding of the industry.

Beyond his direct professional engagements, Charles has made a notable mark as the head writer and founder of ExpertBeacon.com. This platform stands as a testament to his dedication to consumer empowerment and education. ExpertBeacon.com is a resource designed to assist consumers in addressing their persistent questions about products, services, and companies. Under Charles's leadership, the site provides in-depth, well-researched, and accurate information, all structured in easy-to-follow guides and articles. His work here not only highlights his expertise in the field but also his commitment to providing valuable, actionable information to the public.

Charles's approach is centered on a keen understanding of consumer needs and market dynamics, making him a respected voice in the industry. His contributions through ExpertBeacon.com and his professional roles reflect a blend of strategic thinking, practical knowledge, and a genuine desire to enhance consumer experiences in the retail and consumer service sectors.

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