What Is USPS Commercial Mail In 2022? (All You Need to Know)
If you run a small business with regular mailings, you may be spending more than required on postage costs. The United States Postal Service (USPS) offers discounted commercial rates that could save over 50% compared to standard shipping. This guide will explain everything you need to know about unlocking these postal discounts through USPS commercial mail.
What is Commercial Mail?
USPS commercial mail refers to bulk business mailings that meet minimum volume requirements. This includes Marketing Mail advertising, catalogs, Priority Mail packages, and more.
To qualify, mailings generally must contain over 200 pieces or 50 pounds of items. Common examples include:
- Direct mail campaigns with over 500 promotional postcards
- Quarterly product catalogs mailed to your subscriber list
- Weekly shipments of over 50 merchandise packages
Commercial mailings must be presorted by ZIP code using specialized equipment to qualify for the lowest rates. This incentivizes mailers to optimize the processing of high-volume mail for USPS.
Average Savings Potential with Commercial Mail
| Mail Class | Retail Rate | Commercial Rate | Savings % |
|---|---|---|---|
| Marketing Mail Letters | $0.63 | $0.40 | 37% |
| Priority Mail (5 lbs.) | $15.75 | $12.71 | 19% |
With marketing campaigns of 1,000+ pieces, postal discounts will quickly add up.
Qualifying for Commercial Pricing
Gaining access to commercial rates involves a simple permitting process with USPS. Minimum requirements are:
- Obtain permit – Apply for a yearly mailing permit at your local Post Office. This allows commercial rate use.
- Pay fees – There is a $275 annual presort fee to access commercial First Class rates. Other classes have lower charges.
- Meet mail quantity minimums – Each mailing must contain the required number of pieces to qualify, such as 500 for First-Class letter rate.
- Sort & label mail – Use specialized software/hardware to sort mailings for optimized USPS distribution. This improves delivery efficiency.
These requirements incentivize companies to produce USPS-friendly, high-volume mail streams. In return, significant discounts apply.
Tip: Local mailing service bureaus specialize in preparing commercial mailings that meet USPS qualifications so small businesses can save.
Saving on Order Fulfillments
If your small business ships packages out daily, USPS Commercial Plus Cubic pricing for Priority Mail offers discounted rates with minimal effort.
Qualifications for Cubic pricing include:
- 50+ daily shipments per week
- Use USPS-provided Priority Mailbranded packaging
- Electronic USPS scan form submission
With Cubic Pricing, fulfillment charges are based on the overall space your packages occupy, resulting in substantial discounts. Average savings range from 15-63% compared to published Priority Mail rates.
For a small eCommerce company shipping 100+ daily orders, the annual savings can equal tens of thousands in postage.
Next Steps to Leverage Commercial Pricing
Follow this checklist to begin unlocking USPS commercial mail discounts:
Analyze volumes – Review your mailing history and identify cases where 500+ pieces are sent regularly. These represent prime commercial pricing opportunities.
Contact USPS – Talk to your local Post Office marketing representative. They can explain commercial prices in detail and permit requirements.
Consider outsourcing – Mailing service bureaus can expertly handle the sorting, labeling, and logistics of commercial mailings for you. This ensures maximum savings.
Track savings – After 3-6 months, calculate your reduced postage spend from commercial mailing discounts. Identify additional areas to optimize.
By leveraging commercial pricing, high-volume mailers can cut costs dramatically – it just takes some upfront preparation and working with your Post Office. Reach out today to evaluate your options.
