The U.S. Postal Service has proposed new 2012 shipping rates that are expected to start on January 22, 2012.   The average increase for all shipping classes is 4.6%.  Private carriers such as UPS and FedEx have already announced price increases for 2012.  UPS announced last week they are increasing prices on ground and air shipments by an average of 4.9%.  In September, FedEx announced it would increase rates by an average of 5.9%. 

The Postal Regulatory Commission (PRC) must review and approve the new rates before they become effective January 22, 2012.  This is the same day the new USPS mailing service prices will take effect. 

New USPS Shipping Products for 2012

• A new, larger Priority Mail Regional Rate Box C will be introduced that will hold up to 25 pounds.  Box size is expected to be 12” x 12” x 15”.
• A new Express Mail Flat Rate Box will be introduced that holds up to 70 pounds.  Cost will be  $39.95 for domestic mailings.
• Package Intercept will be introduced for commercial mailers.  Customers can request mail be intercepted before final delivery is attempted to the initial delivery address. The shipment can be returned to sender, held for pick up at a Post Office, or redirected to an alternate address.
• First Class Package Service (aka First Class Parcels) will now include the Intelligent Mail package barcode and will provide free visibility to these parcels.

Priority Mail
Priority Mail retail (Post Office) prices will increase an average of 3.1% in 2012. 

Express Mail
USPS retail rates for Express Mail will increase an average of 3.3% in 2012. 

Parcel Select
Prices for Parcel Select, the U.S. Postal Service’s bulk ground shipping product, will increase an average of 8.5%.

First Class Package Service (formerly known as First Class Parcels)
First Class Parcels were recently transferred to the “competitive product list” which allows the mail class to be eligible for Commercial Base pricing. The mail class was renamed First Class Package Service and will see an average increase of 3.7% in 2012.

International Mail
The overall increase for Priority Mail International will be 8.7%. 

Express Mail International will increase by 11.6% and will introduce a two new Express Mail International Flat Rate Boxes with a maximum weight of 20 pounds.  Customers will pay a flat rate of $59.95 to Canada and $74.95 for all other countries. 

Global Express Guaranteed prices will rise by 6.0%.

Stamps.com Will Automatically Include New Rates on January 22, 2012
Stamps.com makes it easy to prepare for the postal rate change by automatically applying these new prices starting on January 22, 2012.  Additionally, Stamps.com customers will continue to receive Commercial Base pricing discounts to help lower your shipping costs in 2012.

For e-commerce retailers, the holiday season can often be the most profitable time of the year. Savvy e-commerce sellers are offering more and more promotions to further increase profits and stay competitive, and this year’s Stamps.com survey shows that free shipping promotions can do just that.

In this, our second e-commerce shipping survey, free shipping shows a surge with 68 percent of sellers planning to offer the promotion on more products during the coming 2011 holiday season — a 15 percent increase from the 2010 holiday season. Also, 54 percent of sellers plan to offer free shipping promotions on 50 percent or more of their holiday collection, up from 43 percent in last year’s holiday season.

What’s the benefit of offering free shipping? Of survey respondents, 52 percent said the promotion increases their average revenue per order by $8 or more.

SECOND ANNUAL STAMPS.COM E-COMMERCE SHIPPING SURVEY RESULTS
The survey was conducted from October 31 to November 4, 2011 and was sent to current Stamps.com customers who operate an e-commerce store. Read on to learn more about the significant findings.

E-commerce sellers say free shipping increases average revenue per order
Stamps.com reports that 52 percent of e-commerce sellers who use free shipping as a promotion see their average revenue per order increase by $8 or more.

E-commerce sellers are offering free shipping on more products in 2011 vs. 2010
Of survey respondents, 68 percent of e-commerce sellers are planning to offer the promotion on more products during the 2011 holiday season, up from 53 percent in last year’s holiday season.

 In fact, 54 percent of respondents will be offering free shipping on more than 50 percent of their holiday catalog — an 11 percent increase from the 2010 holiday season.

Approximately 1 out of 2 customers expect free shipping
Of survey respondents, approximately half find that customers expect free shipping during the holidays.

The holiday sales rush slows the productivity of shippers
Of survey respondents, 20 percent of e-commerce sellers are able to process and ship orders the same day during the holiday season, displaying a 5 percent decrease from non-holiday periods.

The free shipping trend hasn’t affected product return policies
Of survey respondents, 66 percent said the customer is 100 percent responsible for shipping costs on returns.

International markets contribute to profits
Of survey respondents, 82 percent project that at least some of their holiday revenue will come from international purchases, while 11 percent project international sales to account for more than a third of their holiday sales.

Why do e-commerce sellers choose not to offer free shipping?

Of survey respondents who are not offering free shipping, 44 percent said they lose money from the promotion, while 11 percent said the promotion does not increase sales.

Are customers required to reach a minimum order amount to receive free shipping?
Of survey respondents, 51 percent said they do not require customers to reach a minimum order amount, while the remainder was unevenly split between e-commerce sellers who do require it of customers and those who require it on only on select products.

How Much Do Customers Have to Spend to Get Free Shipping?
Of survey respondents who require a minimum order amount to qualify for free shipping, 55 percent require an average order size of $50 or more.

Competitiveness plays a small role in free shipping
Of survey respondents, less than half (43%) said their competitors’ free shipping promotions affect when they decide to offer free shipping.

Seller’s own websites are king when it comes to holiday sales
Of survey respondents, a seller’s own website is the leading source of online sales during the holidays at 39%.  Second was eBay at 31%, followed by Amazon at 17%.

Update:  Here is the recording from the Nov 9 International Shipping webinar with Frank Cebello of the USPS.

Stamps.com is offering a free webinar for e-commerce sellers featuring the best practices in international shipping through the eyes of an expert.

In this installment, the guest speaker is Frank Cebello, Executive Director of Global Business Management for the U.S. Postal Service®. Mr. Cebello is an industry expert and will discuss the impact of 2011 holiday mailing dates, the rising potential of international sales, and the competitive global solutions offered by the USPS. Additionally, the webinar will cover proven best practices including adhering to the shipping regulations and restrictions imposed by different countries, implementing online postage software, utilizing the low-cost international services of the USPS, and opening up your shipping program to international buyers — all of which can increase global sales during the holiday season.

What: Free webinar on international shipping best practices

When: Wednesday, November 9, 2011, at 11:00 a.m. PT / 2:00 p.m. ET

Where: Register at https://www2.gotomeeting.com/register/630635250

Topics Covered:

• USPS international shipping deadlines for 2011
• International market potential
• Understanding Customs Forms
• Details on USPS Global Alliances
• International shipping best practices

Frank Cebello, Executive Director, Global Business Management, USPS

About the Presenter – Frank Cebello Mr. Cebello joined the Postal Service in January of 2007. During his tenure, he has developed the Global Business Sales organization into a specialized and highly successful team that has had great success in growing international Commercial revenues. Prior to joining the Postal Service, Mr. Cebello had a long career with DHL Express where he was the District Sales Manager. Previous executive sales experience at DHL includes several years as an Area Sales Manager and District Sales Manager where he built and led several successful sales teams and negotiated global service agreements for several large clients. Prior to DHL, Mr. Cebello worked for TNT Express Worldwide where he also held several executive sales positions. Mr. Cebello holds a B.A. in Managerial Studies from Rice University.

Send customers a pre-addressed, paid shipping label with just a few clicks!

November is here and the holiday sales rush has started. Eventually, every e-commerce seller will have to handle a product return. Having a generous, hassle-free return policy can help customers feel more comfortable buying products and boost business sales.

Stamps.com allows sellers to easily create and email Return Shipping Labels with just a few clicks. Once the Return Shipping Labels are emailed, they can be printed by customers from any web browser and standard desktop printer within 24 hours. Plus, customers can use the labels to ship back their products on any day they choose.

Steps to Create a Return Shipping Label with Stamps.com:

#1 Log in to your Stamps.com software

#2 Click Search in the left navigation bar of the software or the top navigation bar of the website.

#3 Click the checkbox next to the print that you need to generate a Return Label for. This activates the Return Label button.

#4 Click the “Return Label” button.

#5 Select to have the Return Label sent by Stamps.com or via your own preferred email account (e.g. Microsoft Outlook). Click Continue.

#6 Enter email information (skip this step if you selected to send the email from your own email account)

#7 Verify the “Return To” address, which is pre-populated using the original return address.  You can change the “Return To” address by clicking it.  Please note that the “Return From” address is the original “Ship To” address and cannot be changed.

#8  Select your mailclass,  insurance, cost code, etc.

#9 To see a preview of the email containing a link to the Return Shipping Label, click Preview. Please note this feature is only available when the email is sent via Stamps.com.

#10 Click Send to generate the Return Shipping Label and send the email.

Note:  The Return Shipping Label link within the email will remain active for 24 hours from the time it’s sent to your customer. If for whatever reason the return label is not used by your customer, please request a refund no more than 10 days after the day of the label’s creation. To create a Return Shipping Label, you must have software Version 8.0 or higher, or be using the Stamps.com Online version. Also, Return Shipping Labels can only be created for packages originating from Stamps.com that were sent using Delivery or Signature Confirmation™.