USPS Parcel Select in 2024: What Small Businesses Need to Know
Shipping costs are one of the biggest headaches for small ecommerce businesses. Domestic shipping through USPS offers several options, but Parcel Select stands out as the most affordable for medium to high volume shippers.
This in-depth guide will explain everything you need to know about Parcel Select in 2024 – from eligibility rules, to rate changes, to maximizing value. With the right shipping strategy, it could save your business significantly on ground shipping costs.
What Exactly is Parcel Select?
According to USPS regulations, Parcel Select is a ground package service for volume shipments that provides discounted rates in exchange for slower delivery timeframes.
It is one of the Postal Service‘s least expensive shipping options. In 2021, Parcel Select accounted for 13.5% of total USPS shipping volume.
Here are the key characteristics of Parcel Select:
Only Available to Approved Business Shippers: Parcel Select is restricted to business/commercial accounts using USPS-approved postage vendors. Average consumers cannot access it.
2-8 Day Delivery Time: Delivery takes 2-8 business days based on where the package originates and its destination. See the USPS delivery zone chart for estimated time-in-transit.
Ground Transportation Only: Packages travel by ground transportation only and do not get tendered to air carriers like Priority Mail. This leads to slower delivery.
Low Base Prices: The starting price for a 1 lb package is just $3.19 – significantly lower than published Priority Mail rates.
Dimensional Weight Pricing: Packages are priced based on the greater of their actual weight or dimensional weight. This is triggered at 1 cubic foot.
Available for Lightweight Packages: Parcel Select is most cost-effective for lightweight packages under 10 lbs going to Zones 1-4. Heavier packages may be cheaper with Priority Mail.
Includes Basic Tracking: Each package comes with a tracking number, but updates are less frequent than Priority Mail.
In summary, Parcel Select offers major cost savings for high volume shippers who can sacrifice speed for lower prices on lightweight ground packages.
How Will Parcel Select Work in 2024?
In 2024, Parcel Select will continue operating as an affordable ground shipping service for high volume shippers.
However, the Postal Regulatory Commission has approved some price changes taking effect on January 22, 2023:
- Parcel Select Ground: 9.2% average rate increase
- Parcel Return Service: 9.5% average rate increase
These rate hikes are being implemented for the Postal Service to cover increasing operating expenses. But even with the increases, Parcel Select will still offer significant discounts compared to faster Priority Mail.
All other program rules and restrictions will remain unchanged in 2024. Shippers must still purchase through approved postage vendors, and packages must fall within the weight and size limits.
When is Parcel Select the Best Choice for Your Business?
Parcel Select offers the biggest cost savings for businesses that:
- Ship high volumes (at least 50-100+ packages per month)
- Primarily ship smaller lightweight packages (under 10 lbs)
- Focus on shorter delivery distances (zones 1-4, under 600 miles)
- Don‘t need rapid delivery (2-8 day time-in-transit is acceptable)
For example, a company shipping 200 packages per month averaging 3 lbs each to Zone 4 would likely achieve significant savings using Parcel Select Ground vs. Priority Mail.
However, businesses shipping heavier or long-distance packages may find Priority Mail to be more cost effective due to Parcel Select‘s dimensional weight rules and zone-based pricing.
This table illustrates sample price comparisons between Parcel Select and Priority Mail in 2024 for selected package weights and zones:
| Package Weight | Zone 4 (500 miles) | Zone 8 (1,800 miles) |
|---|---|---|
| 1 lb | Parcel Select: $4.39 Priority Mail: $8.10 | Parcel Select: $5.83 Priority Mail: $9.45 |
| 5 lbs | Parcel Select: $7.12 Priority Mail: $10.40 | Parcel Select: $13.47 Priority Mail: $15.50 |
| 10 lbs | Parcel Select: $10.61 Priority Mail: $14.35 | Priority Mail: $21.60 Parcel Select: $16.70 |
Analysis: For longer distances and heavier packages, Parcel Select loses its pricing advantage. But it excels for lightweight, shorter-zone shipments.
How to Maximize Savings with Parcel Select
Follow these tips to optimize your packaging and shipping strategies for Parcel Select:
Use USPS packaging – Take advantage of free boxes and envelopes to avoid dimensional weight charges.
Keep packages small – Box size dimensions under 1 cubic foot avoid dimensional pricing.
Ship from and to commercial addresses – You‘ll save a couple dollars per package with commercial pricing.
Get free package pickup – If you ship 50+ packages per month, you can get them picked up for free.
Compare rates – Check Parcel Select vs. Priority Mail for each package, and use whichever is cheaper.
Consolidate orders – When possible, consolidate multiple orders going to the same address into one larger package.
Potential Drawbacks to Consider
While Parcel Select can offer huge savings, some drawbacks to consider include:
Slower delivery times – Customers must be willing to wait potentially 2-8 business days to receive their order.
Higher loss/damage risk – Ground transportation carries slightly higher risk than air shipping through Priority Mail.
Less tracking visibility – Tracking updates are less frequent than with Priority Mail.
The Bottom Line
Parcel Select provides an extremely affordable shipping option for high-volume ecommerce businesses. To maximize value in 2024, focus Parcel Select usage on your lighter weight packages traveling shorter distances.
Let me know if you have any other questions! I‘m happy to help you implement a customized Parcel Select strategy to start saving on shipping costs.
