USPS Ground Advantage Set to Launch in July
Postal Regulatory Commission approves rollout of USPS Ground Advantage; First Class Package and Retail/Parcel Select Ground will no longer be available in July 2023
Major changes are coming to the US Postal Service’s shipping products in July 2023. The biggest change is that the Postal Regulatory Commission has approved the Postal Service’s plan to create USPS Ground Advantage. This is a new service from USPS that combines First Class Package and Retail/Parcel Select Ground into a single offering.
USPS Ground Advantage Combines First Class Package and Retail/Parcel Select Ground
Once USPS Ground Advantage rolls out, First Class Package and Retail/Parcel Select Ground will no longer be available for shippers to use. As such, packages that weigh less than 15.99 ounces—which would have formerly defaulted to First Class Package—will now default to USPS Ground Advantage.
The service will work similarly to the normal ground service that USPS previously offered. It will feature delivery timeframes of 2-5 business days, and packages will be transported via the Postal Service’s ground network. For many shippers sending lightweight packages, USPS Ground Advantage will be the cheapest way to ship their parcels with USPS.
The Service Includes Built-In USPS Insurance
One other thing about this new USPS service is that each label will include $100 of USPS insurance. This applies both to regular packages and return packages that are sent with this service. Shippers can also further protect their packages with shipping insurance by being able to declare a value of up to $5,000.
This is a notable change from First Class Package and Retail/Parcel Select Ground; neither of those services came with any built-in USPS insurance whatsoever.
Ground Advantage Postage Will Come in Two Pricing Tiers
Like most USPS services, there will be two pricing tiers for Ground Advantage: Retail Pricing and Commercial Pricing. Retail Pricing refers to what shippers will pay to ship a package at the Post Office or on USPS.com. Commercial Pricing, meanwhile, refers to the special levels of discounts that shippers can access when they purchase labels with online shipping software solutions.
USPS Ground Advantage is a Key Part of the Postal Service’s 10-Year Plan
Combining two of the most popular USPS shipping services into a single offering is a part of the Postal Service’s 10-year plan to turn itself around under Postmaster General Louis DeJoy. Simply put, air transportation is more expensive than ground. The margins that USPS was making on First Class Package shipments didn’t justify the higher cost of air transport.
With this new service, USPS will inject more packages into its ground network and away from air transportation. In theory, this is how USPS Ground Advantage will help USPS lower costs. With these changes, both USPS and its shippers can expect to save more money on lightweight packages.
Other Changes to USPS Pricing in July 2023
Rolling out USPS Ground Advantage isn’t the only change that the Postal Service is making in July 2023. Other changes include price increases for Media Mail and an increase for Signature Confirmation services. Media Mail rates are increasing by 7% for each weight class, and Signature Confirmation is increasing to $3.40. Some Priority Mail pricing structures are decreasing, as well, though the amount will vary based on the weight of a shipper’s package and how far it needs to travel.
Learn more about USPS Ground Advantage on the USPS website.
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