Shipping from the U.S. to UK with 2021 VAT Rules

December 22nd, 2020 Comments off

Starting January 1, 2021, shipping to the UK is becoming more complex due to Brexit.

If you’re an online retailer shipping products from the U.S. to the United Kingdom (UK), you will need to change your fulfillment process starting January 1, 2021.  The UK has left the European Union trading relationship and the country has implemented new rules for goods and services to be imported into the UK.

Brexit Background – UK Exits the European Union Trade Agreement

The UK officially left the European Union on January 31, 2020, a process that is commonly called “Brexit.”  This announcement triggered a “transition period,” where trade would continue as is with no changes to UK Value-Added Tax (VAT) rules, treatment of transactions or filings through December 31, 2020. 

Starting on January 1, 2021, all UK imports and exports will fall under the World Trade Organization (WTO) terms, which requires changes to many fulfillment processes for U.S. e-commerce parcel deliveries to the UK. 

Changes for E-commerce Orders Being Delivered to UK:

Under the World Trade Order terms, there are four important changes occurring for products being shipped to the UK from the U.S. (along with all countries):

#1 Register for VAT and Collect VAT Fees:  As a U.S. online retailer, you will now be required to register for a VAT number and create an online account from HM Revenue and Customs (HMRC) in order to deliver e-commerce orders into the UK.  Once you have your VAT number, you will be required to collect all VAT fees from your buyers at time of product purchase. This VAT fee was previously being completed when a parcel entered the UK, typically with the buyer having to pay VAT to release the package from Customs.  The new WTO rules pushes that VT tax collection burden to the online retailer in the U.S. who is exporting the product to the UK.

VAT rates for collection depend on the product price:

A)     Most Goods and Services valued UNDER £135 have a 20% VAT Rate

Goods and services shipped to the UK with a value between £0.01 and £135 (between $1 and approximately $180 USD) will incur VAT fee of 20% of the product price (not including shipping fees).  U.S. online retailers selling products to UK buyers are require to collect this 20% VAT fee at the time of sale.  Online retailers will be responsible to pay all VAT collected to HMRC every three months.

B)     VAT for Goods and Services valued OVER £135

All shipments with goods and services valued higher than £135 (approximately $180 USD) will be subject to the current VAT procedures, which state VAT is payable as the parcels are being imported into the UK.  These types of packages are often cleared through customs via parcel consolidators and all applicable duties and VAT will be paid to HMRC directly by the parcel consolidator, who then normally invoices the online retailer.

#2 Make Quarterly VAT Return Payments to HMRC:  Online retailers must report and pay the VAT Return (taxes) collected from their online sales each quarter to HMRC. You can find your actual deadline inside your VAT online account, but in general the deadline for HMRC’s bank to receive payment is one calendar month plus 7 days after the end of the accounting period (annual quarter).  If your VAT Return payment is late, you could be liable for additional late fees.

To submit your VAT Return, you can use HMRC’s free online service or one of the many commercial accounting software platforms that HMRC has partnered with. The approved software list includes many popular solutions such as QuickBooks Online, Sage Business Cloud and SAP. 

Your quarterly VAT Return should include key data points for your UK sales such as:

· Total sales and purchases for your account (only orders delivered to UK)
· The amount of VAT you owe from your UK sales
· The amount of VAT you can reclaim (i.e. order returns, product defects)
· The amount of VAT refund due from HRMC

#3 More Info Required in Customs Documents: All parcel shipments into the UK will be subject to customs clearance and inspections, which could add significant delays for parcels being delivered to the buyer.  U.S. online retailers shipping goods or services into the UK will need to provide import or export declarations to UK Customs.  A customs invoice will be required for each parcel that shows UK VAT along with the product price in order for the parcel to be released out of customs.

#4 Elimination of the Low Value Consignment Relief: In addition to implementing the WTO trade terms, the UK is removing Low Value Consignment Relief (LVCR) – a rule that allowed good and products from outside the EU that had a value of £15 or less (estimated $20) to be tax exempt.  In 2021, those products will now be subject to the 20% VAT rate.

The UK is taking these actions to ensure that goods and services from outside the UK are treated in the same manner as products within the country, so as UK businesses are not disadvantaged by competition from VAT free imports.

Failure to adhere to these new UK Customs procedures could result in:
· Parcels being refused entry into the UK by customs
· Parcels being returned to sender (including return shipping fees depending on carrier used)
· Parcels and products being destroyed
· Parcels incurring major delays in being delivered to buyer
· Parcels generating additional shipping and/or customs fees, or penalties

Required actions to sell and ship products into the UK in 2021

Starting January 1, 2021, online retailers selling goods or services to UK buyers will be required to register their business with the HM Revenue and Customs (HMRC) to obtain a VAT number.  Here are the steps to complete this process:

How to Create UK Government Gateway Account and Register for VAT

1.            Go to the HMRC login in page by clicking the following link:
https://www.gov.uk/log-in-register-hmrc-online-services

2.            Click on the Green “Sign in” button.

3.            Click on “Create sign in details”.

4.            Enter your Email Address and click “Continue”.

5.            The site will email you a “Confirmation code”.  Enter the code and click the Green “Confirm” button to continue.

6.            User ID Issued.

7.            Enter your name.

8.            Create a Password and hit “Continue”.

9.            Set up a Recovery Password and click “Continue”.

10.         You will now receive your Government Gateway User ID which consists of 12 numbers.

11.         You will then need to register for VAT using your Government Gateway User ID and Password.

To register with HMRC for a VAT number, proceed to the following link:
https://www.gov.uk/vat-registration/how-to-register

Do Sellers on eBay, Amazon or another Online Marketplace Have to Collect VAT?

Online marketplaces (OMP) such as eBay, Amazon, Etsy and others will be responsible for collecting the VAT from the buyer when the sale occurs on their website as long as the price is £135 or less.  For sales that are over £135, the OMP will not collect the VAT and existing import rules will go into effect (seller pays at port of entry).

Categories: International Shipping Tags:

USPS Announces 2021 Rate Increase for Shipping Services

November 18th, 2020 Comments off

The U.S. Postal Service has proposed new postage rates to be implemented on Sunday, January 24, 2021, subject to approval by the Postal Regulatory Commission (PRC). Listed below are the highlights of the proposed 2021 USPS shipping rate increase for customers buying postage online for DOMESTIC SHIPPING services. For information about the previously announced mailing rates see the USPS 2021 Mailing Rates post.

Priority Mail Express – 2021 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE – 2021 Rates vs. 2020 Rates

Weight
(lbs.)
Zones
1 & 2
Zone
3
Zone
4
Zone
5
Zone
6
Zone
7
Zone
8
Zone
9
0.5$0.00$0.00$0.95$1.10$1.15$1.35$1.55$2.2
1$0.00$0.00$1.10$1.25$1.35$1.60$1.80$2.55
2$0.00$0.00$1.20$1.50$1.55$1.85$2.10$2.95
3$0.00$0.00$1.35$1.65$1.85$2.10$2.35$3.35
4$0.00$0.00$1.45$1.90$2.05$2.35$2.65$3.75
5$0.00$0.00$1.60$2.05$2.25$2.60$2.90$4.10

Overall, prices for Priority Mail Express will increase by 2.5% (Commercial Base). A 1 lb. package going to Zone 8 using Priority Mail Express will cost $39.85 in 2021 compared to $38.05 (does not include holiday surcharge) in 2020.

2021 USPS Shipping Rate Increase Points of Interest:

  • Packages weighing up to 20 lbs. traveling to Zones 1 through 3 will not see an increase.
  • Rate increases for Zone 9 (U.S. territories) are increasing by 4.95% or more
  • Commercial Base and Commercial Plus pricing will be the same in 2021.
  • The maximum discount for Commercial Base based pricing compared to Post Office (Retail) prices is 17%
  • NEW: An overweight/oversize surcharge of $100 will be added for packages that exceed the 70 lb. maximum weight limitation or the 130 inch length plus girth maximum dimensional size limit. This $100 surcharge must be paid by the shipper before the package will be delivered.

Priority Mail Express Flat Rate – 2021 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE – 2021 Rates vs. 2020 Rates

Mailpiece20212020Increase
Flat Rate Envelope$22.75$22.75$0.00
Legal Flat Rate Envelope$22.95$22.95$0.00
Padded Flat Rate Envelope$23.25$23.25$0.00

Priority Mail Express Flat Rate Envelopes will NOT increase rates in 2021. Prices for Priority Mail Express Flat Rate Envelopes will remain the same as 2020, ranging from $22.75 to $23.25 per envelope. 

Priority Mail – 2021 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE – 2021 Rates vs. 2020 Rates

Weight
(lbs.)
Zones
1 & 2
Zone
3
Zone
4
Zone
5
Zone
6
Zone
7
Zone
8
Zone
9
1$0.14$0.11$0.11$0.08$0.36$0.37$0.38$2.85
2$0.15$0.12$0.12$0.09$0.45$0.47$0.5$4.36
3$0.16$0.12$0.13$0.10$0.55$0.61$0.71$5.92
4$0.16$0.13$0.14$0.10$0.64$0.72$0.82$7.13
5$0.16$0.13$0.14$1.06$0.73$0.83$0.95$8.29

Priority Mail will see an average increase of 3.6% (Commercial Base). A 1 lb. package going to Zone 8 using Priority Mail will increase $0.38, costing $8.80 in 2021 compared to $8.42 (does not include holiday surcharge) in 2020.

2021 USPS Shipping Rate Increase Points of Interest:

  • Rate increases are modest (2.04% or lower) for packages weighing up to 6 lbs. being delivered to Zones 1-5.  The one exception is Zone 5 at 5 lbs. which is seeing an increase of $1.06 (9.96%).
  • For all packages weighing up to 70 lbs. being delivered to Zones 6-8, the rate increases are significant at 4.50% or higher.
  • For packages weighing 7 lbs. or more, Zone 1-5 are seeing a significant increase of 3.96% or higher.
  • For packages weighing 11 lbs. or higher, the rate increase is a minimum of 7%.
  • Rate increases for Zone 9 (U.S. territories) are increasing by 24.99% or more
  • The maximum Priority Mail Commercial Base discount compared to Post Office (Retail) prices is 40%.
  • NEW: An overweight/oversize surcharge of $100 will be added for packages that exceed the 70 lb. maximum weight limitation or the 130 inch length plus girth maximum dimensional size limit. This $100 surcharge must be paid by the shipper before the package will be delivered.

Priority Mail Flat Rate – 2021 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE – 2021 Rates vs. 2020 Rates

Mailpiece20212020Increase
Flat Rate Envelope$7.40$7.15$0.25
Legal Flat Rate Envelope$7.70$7.45$0.25
Padded Flat Rate Envelope$8.00$7.75$0.25
Small Flat Rate Box$7.90$7.65$0.25
Medium Flat Rate Box$13.75$13.20$0.55
Large Flat Rate Box$19.3$18.30$1.00
APO/FPO Large Flat Rate Box$17.8$16.80$1.00

Shipping rates for Priority Mail Flat Rate products will increase in 2021. The popular Priority Mail Flat Rate Padded Envelope will increase $0.25 to $8.00 in 2021 compared to $7.75 (does not include holiday surcharge) in 2020. Rates for the Priority Mail Medium Flat Rate Box will increase $0.55 to $13.75 from $13.20 currently. Rates for the Large Flat Rate Box will increase $1.00, to $19.30 from $18.30 (does not include holiday surcharge) in 2020.

2021 USPS Shipping Rate Increase Points of Interest:

  • Rate increases gain in cost as the Flat Rate Box increases in size.
  • Small Flat Rate boxes are increasing only $0.25 (3.5%) while the Large Flat Rate Box is increasing $1.00 (5.46%).

Priority Mail Regional Rate Boxes – 2021 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE – 2021 Rates vs. 2020 Rates

Box
Type
Zones
1 & 2
Zone
3
Zone
4
Zone
5
Zone
6
Zone
7
Zone
8
Zone
9
A$0.15$0.12$0.13$0.09$0.47$0.50$0.54$4.68
B$0.16$0.13$0.14$0.83$0.78$0.89$1.01$8.60

Rates for Priority Mail Regional Rate Boxes will be increasing for all shipping zones in 2021. A 5 lb. package going to Zone 8 using the Regional Rate Box A will increase by $0.54 to $12.64 in 2021 compared to $12.10 (does not include holiday surcharge) in 2020.  Regional Rate Box A is priced at a 2 lb. regular Priority Mail rate, yet can contain products that weigh up to 15 lbs.

2021 USPS Shipping Rate Increase Points of Interest:

  • For Regional Rate Box A, the closer shipping zones (Zones 1-5) are seeing a modest 1-2% increase.
  • At Zone 6, the rate increase jumps significantly to 4.46% or higher
  • Rate increases Zone 9 (U.S. territories) are increasing by 25%

First Class Package Service – 2021 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE – 2021 Rates vs. 2020 Rates

Mailpiece WeightZones
1 & 2
Zone
3
Zone
4
Zone
5
Zone
6
Zone
7
Zone
8
Zone
9
1 ounce$0.27$0.27$0.28$0.28$0.29$0.30$0.31$0.31
2 ounces$0.27$0.27$0.28$0.28$0.29$0.30$0.31$0.31
3 ounces$0.27$0.27$0.28$0.28$0.29$0.30$0.31$0.31
4 ounces$0.27$0.27$0.28$0.28$0.29$0.30$0.31$0.31
5 ounces$0.25$0.26$0.26$0.26$0.19$0.17$0.18$0.18
6 ounces$0.25$0.26$0.26$0.26$0.19$0.17$0.18$0.18
7 ounces$0.25$0.260.26$0.26$0.19$0.17$0.18$0.18
8 ounces$0.25$0.26$0.26$0.26$0.19$0.17$0.18$0.18
9 ounces$0.11$0.12$0.12$0.12$0.20$0.21$0.22$0.22
10 ounces$0.11$0.12$0.12$0.12$0.20$0.21$0.22$0.22
11 ounces$0.11$0.12$0.12$0.12$0.20$0.21$0.22$0.22
12 ounces$0.11$0.12$0.12$0.12$0.20$0.21$0.22$0.22
13 ounces$0.15$0.15$0.15$0.15$0.26$0.27$0.28$0.28
14 ounces$0.15$0.15$0.15$0.15$0.26$0.27$0.28$0.28
15 ounces$0.15$0.15$0.15$0.15$0.26$0.27$0.28$0.28
15.999 ounces$0.15$0.15$0.15$0.15$0.26$0.27$0.28$0.28

Overall rates for First Class Package Service will increase by 6.50%. A 15.999 ounce package for First Class Package Service traveling to zone 8 will increase $0.28 to $5.98 in 2021 from $5.70 (does not include holiday surcharge) in 2020.

2021 USPS Shipping Rate Increase Points of Interest:

  • First Class Package Service is seeing increases range from $0.11 (2.8% increase) to $0.31 (9.75% increase)
  • The maximum First Class Package Service Commercial Base discount compared to Post Office (Retail) prices is 28%.
  • First Class Package Service remains the best deal across all shipping carriers in the U.S.
  • NEW: An overweight/oversize surcharge of $100 will be added for packages that exceed the 70 lb. maximum weight limitation or the 130 inch length plus girth maximum dimensional size limit. This $100 surcharge must be paid by the shipper before the package will be delivered.

Parcel Select Ground – 2021 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE – 2021 Rates vs. 2020 Rates

Weight
(lbs.)
Zones
1 & 2
Zone
3
Zone
4
Zone
5
Zone
6
Zone
7
Zone
8
Zone
9
1$0.09$0.06$0.06-$0.02$0.06$0.07$0.03$0.03
2$0.05$0.02$0.02-$0.06$0.00-$0.03-$0.10-$0.10
3$0.01-$0.03-$0.02-$0.05-$0.10-$0.19-$0.34-$0.34
4$0.01-$0.02-$0.01-$0.05-$0.01-$0.08-$0.23-$0.23
5$0.01-$0.02-$0.01$0.91$0.08$0.03-$0.10-$0.10
6$0.01-$0.02-$0.01-$0.01$0.27$0.27$0.18$0.18
7$0.04$0.09$0.09$0.34$0.12-$0.04-$0.12-$0.12
8$0.04$0.11$0.16$0.39$0.22$0.08$0.05$0.05
9$0.07$0.12$0.18$0.44$0.32$0.19$0.22$0.22
10-$0.01$0.04$0.09$0.36$0.13-$0.10-$0.16-$0.16

Overall rates for Parcel Select Ground will increase by 1.3% in 2021. However, many low weight packages are actually declining in 2021.  A 2 lb. package going to Zone 8 will DECREASE by $0.10 to $10.79 in 2021 from $10.89 (does not include holiday surcharge) in 2020.

2021 USPS Shipping Rate Increase Points of Interest:

  • Lower weights and closer shipping zones are seeing rates DECREASE by as much as $0.34 cents (3 lbs., zone 8)
  • Heavier packages traveling to farther shipping zones (Zones 6-8) are seeing big increases.  A package weighing 70 lbs. traveling to Zone 7 is seeing a $9.12 increase.
  • NEW: An overweight/oversize surcharge of $100 will be added for packages that exceed the 70 lb. maximum weight limitation or the 130 inch length plus girth maximum dimensional size limit. This $100 surcharge must be paid by the shipper before the package will be delivered.

Media Mail – 2021 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE – 2021 Rates vs. 2020 Rates

Weight
(lbs.)
20212020Increase
1$2.89$2.8$0.09
2$3.45$3.33$0.12
3$4.01$3.86$0.15
4$4.57$4.39$0.18
5$5.13$4.92$0.21
6$5.69$5.45$0.24
7$6.25$5.98$0.27
8$6.81$6.52$0.29
9$7.37$7.06$0.31
10$7.93$7.60$0.33

Media Mail rates will increase by an average of 3.57% in 2021. A 1 lb. package traveling to Zone 8 will increase $0.09 cents to $2.89 in 2021 compared to $2.80 in 2020.

2021 USPS Shipping Rate Increase Points of Interest:

  • The rate increases get higher as Media Mail package weights go up.  While 1 lb. rates are going up by $0.09, a 45 lb. package is increasing by $1.03 and a 70 lb. package is increasing by $1.53
  • NEW: An overweight/oversize surcharge of $100 will be added for packages that exceed the 70 lb. maximum weight limitation or the 130 inch length plus girth maximum dimensional size limit. This $100 surcharge must be paid by the shipper before the package will be delivered.

Stamps.com Will Automatically Update to the New USPS Rates on January 24, 2021

Once the rates are approved by the PRC, Stamps.com will automatically update all USPS rates inside the software and web-based version (Stamps.com Online) on Sunday, January 24, 2021. If you are a Stamps.com customer, no additional actions are needed and you will AUTOMATICALLY see the 2021 USPS rates in the platform.

Follow the Stamps.com blog for more USPS news, including year over year comparisons for USPS International Shipping rates.

Categories: USPS News Tags:

USPS International Shipping Rates for 2020

October 23rd, 2019 Comments off

The USPS has proposed new postage rates to be implemented on Sunday, January 26, 2020, subject to approval by the Postal Regulatory Commission (PRC). In our earlier analysis, we showcased the 2020 postage rate increase for domestic letters and packages. This analysis highlights the 2019 USPS rate increase for INTERNATIONAL shipping services.

First Class Package International Service - 2020 Rates

INCREASE PER PACKAGE - 2020 Rates vs. 2019 Rates
Countries Including:CanadaMexicoAustralia, Japan, ChinaRussia, Turkey, CzechUK, Germany, France
4 lbs.$10.69$4.03$13.78$3.56$0.71
Country Group12345
1 lb.$3.32$0.23$4.03$1.43$0.48
2 lbs.$3.32$0.23$4.03$1.43$0.48
3 lbs.$5.46$0.24$7.60$3.57$1.42
INCREASE PER PACKAGE - 2020 Rates vs. 2019 Rates
Countries Including:India, Taiwan, SingaporeSouth Africa, TanzaniaEgypt, QatarBrazil, Peru, Argentina
Country Group6789
1 lb.$0.95$2.14$2.62$0.95
2 lbs.$0.95$2.14$2.62$0.95
3 lbs.$1.67$3.33$5.47$1.90
4 lbs.$0.24$3.56$7.60$0.71

First-Class Package International Service™ – The overall increase for First-Class Package International Service (FCPIS) prices will be 9.9%.

  • Delivery to Canada (Country Group 1) is seeing a large rate increase.  A FCPIS 1 lb. package to Canada is increasing by $3.32 to $19.71 from $16.39 in 2019. A FCPIS 3 lb. package to Canada is increasing by $5.46 to $30.40 from $24.94 in 2019.
  • Delivery to Australia/Asia (Country Group 3) will also see a large rate increase. A 1 lb. package to Australia/Asia is increasing by $4.03 to 26.36 from 22.33 in 2019. A 3 lb. package to Australia/Asia is increasing by $7.60, to $40.85 from $33.25 in 2019.

Priority Mail International CANADA - 2020 Rates

INCREASE PER PACKAGE - 2020 Rates vs. 2019 Rates
Weight Not Over (lbs.)20202019Increase
1 lb.$34.53$32.59$1.94
2 lbs.$37.34$35.20$2.14
3 lbs.$40.09$37.81$2.28
4 lbs.$42.85$40.42$2.43
5 lbs.$45.60$43.04$2.56

Priority Mail International UK - 2020 Rates

INCREASE PER PACKAGE - 2020 Rates vs. 2019 Rates
Weight Not Over (lbs.)20202019Increase
1 lb.$53.34$49.97$3.37
2 lbs.$58.09$54.39$3.70
3 lbs.$62.80$58.81$3.99
4 lbs.$67.55$63.22$4.33
5 lbs.$72.30$67.64$4.66

Priority Mail International AUSTRALIA - 2020 Rates

INCREASE PER PACKAGE - 2020 Rates vs. 2019 Rates
Weight Not Over (lbs.)20202019Increase
5 lbs.$70.30$66.12$4.18
1 lb.$51.40$48.07$3.33
2 lbs.$56.15$52.58$3.57
3 lbs.$60.85$57.10$3.75
4 lbs.$65.60$61.61$3.99
  • Priority Mail International rates will be increasing by an average of 6.0% in 2019.
  • The average increase of a Priority Mail International 1 lb. package will be $2.85.
  • Priority Mail International packages to Canada are seeing an increase of 5.6% for a 1 lb. package, to $35.53 from $33.54 (Zone 1.3) in 2019.
  • Priority Mail International packages to the UK are seeing a 6.3% increase for 1 lb. package, to $53.34 from $49.97 in 2019.   
  • Priority Mail International packages to Australia are seeing a 6.5% increase for a 1 lb. package, to $51.40 from $48.07 in 2019.

Priority Mail Express International CANADA

INCREASE PER PACKAGE - 2020 Rates vs. 2019 Rates
Weight Not Over (lbs.)20202019Increase
1 lb.$46.82$45.90$0.92
2 lbs.$51.81$50.78$1.03
3 lbs.$56.80$55.67$1.13
4 lbs.$61.79$60.57$1.22
5 lbs.$66.78$65.46$1.32

Priority Mail Express International UK

INCREASE PER PACKAGE - 2020 Rates vs. 2019 Rates
Weight Not Over (lbs.)20202019Increase
1 lb.$65.31$64.07$1.24
2 lbs.$69.68$68.37$1.31
3 lbs.$74.06$72.66$1.40
4 lbs.$78.45$76.97$1.48
5 lbs.$82.83$81.27$1.56

Priority Mail Express International AUSTRALIA

INCREASE PER PACKAGE - 2020 Rates vs. 2019 Rates
Weight Not Over (lbs.)20202019Increase
1 lb.$68.83$67.53$1.30
2 lbs.$75.12$73.70$1.42
3 lbs.$81.42$79.88$1.54
4 lbs.$87.72$86.06$1.66
5 lbs.$94.00$92.23$1.77
  • Priority Mail Express International rates will be increasing by an average of 2.0% in 2019
  • The average increase of a Priority Mail Express International 1 lb. package is increasing by $2.48.
  • Priority Mail International packages to Canada are seeing an increase of 2.0% for a 1 lb. package, to $46.82 from $45.90 in 2019.
  • Priority Mail International packages to the UK are seeing an increase of 1.9% for a 1 lb. package, to $65.31 from $64.07 in 2019.
  • Priority Mail International packages to Australia are seeing an increase of 1.9% for a 1 lb. package, to $68.83 from $67.53 in 2019.

USPS Announces 2020 Postage Rate Increase

October 15th, 2019 Comments off

The U.S. Postal Service has proposed new postage rates to be implemented on Sunday, January 26, 2020, subject to approval by the Postal Regulatory Commission (PRC). Listed below are the highlights of the proposed 2020 USPS rate increase for customers buying postage online for DOMESTIC letters and packages:

First Class Mail Letters - 2020 Rates

INCREASE PER LETTER - 2020 Rates vs. 2019 Rates
Mailpiece Weight20202019Increase
Letters - 1 oz.$0.55$0.55$0.00
Letters - Additional Ounces$0.15$0.15$0.00
Metered Mail Letters (Stamps.com Rate) - 1 oz.$0.50$0.50$0.00
Metered Mail Letters (Stamps.com Rate) - Additional Ounces$0.15$0.15$0.00
Flat/Large Envelope - 1 oz.$1.00$1.00$0.00
Flat/Large Envelope - Additional Ounces$0.20$0.15$0.05
Postcards$0.35$0.35$0.00
International Letters - 1 oz. (County Groups 1-9)$1.15$1.15$0.00
International Postcard (County Groups 1-9)$1.15$1.15$0.00

The rate for a First Class Mail Letter (1 oz.) for postage purchased at the Post Office is NOT INCREASING in 2020, remaining at $0.55. If you print postage online (via Stamps.com), the Metered Mail rate will also NOT BE INCREASING, with rates remaining at $0.50 in 2020, a 5 cent discount off the Post Office price. Each additional ounce will cost $0.15 (no change from 2019).

The starting rate for a First Class Mail Flats/Large Envelope is NOT INCREASING in 2020 with the price remaining at $1.00 (1 oz.). Each additional ounce will cost $0.20 (a 5 cent increase from 2019). Postcards will remain at $0.35 in 2020.

Priority Mail Express - 2020 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE - 2020 Rates vs. 2019 Rates
Weight (lbs.)Zones 1/2Zone 3Zone 4Zone 5Zone 6Zone 7Zone 8Zone 9
0.5$0.07$0.57$0.56$0.79$0.87$0.95$1.37$2.28
1$0.26$1.43$-1.21$-0.91$0.36$0.28$1.53$2.50
2$0.47$1.63$-0.40$0.94$2.51$2.48$3.44$5.18
3$0.67$2.30$-0.96$0.42$2.18$2.04$3.10$4.75
4$0.88$2.35$0.08$-0.16$2.15$1.84$2.79$4.40
5$0.09$0.76$0.99$1.49$1.64$1.79$2.56$4.18

Overall, prices for Priority Mail Express will increase by 2.2%. A 1 lb. package going to Zone 8 using Priority Mail Express will cost $38.05 in 2020 compared to $36.52 currently.

Priority Mail Express Flat Rate - 2020 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE - 2020 Rates vs. 2019 Rates
Mailpiece20202019Increase
Flat Rate Envelope$22.75$22.68$0.07
Legal Flat Rate Envelope$22.95$22.80$0.15
Padded Flat Rate Envelope$23.25$23.18$0.07

Priority Mail Express Flat Rate Envelopes will also see a rate increase in 2020. The increases vary depending on the type of envelope, ranging from $0.07 to $0.15 per envelope.

Priority Mail - 2020 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE - 2020 Rates vs. 2019 Rates
Weight (lbs.)Zones 1 & 2Zone 3Zone 4Zone 5Zone 6Zone 7Zone 8Zone 9
1$0.07$0.07$0.07$0.15$0.16$0.16$0.17$1.49
2$0.22$0.23$0.24$0.26$0.29$0.31$0.33$2.28
3$0.23$0.24$0.25$0.28$0.35$0.39$0.46$3.09
4$0.23$0.25$0.26$0.30$0.41$0.47$0.53$3.72
5$0.23$0.25$0.27$0.31$0.47$0.54$0.61$4.33

Priority Mail will see an average increase of 2.8%. A 1 lb. package going to Zone 8 using Priority Mail will cost $8.42 in 2020 compared to $8.25 currently.

For 1 and 2 lb. packages, the Priority Mail rate increases are modest with a maximum increase of $0.17 for 1 lb. Zone 8, costing $8.42 (increase of 2.0%) and an increase of $0.33 for 2 lb. Zone 8 to $11.19 (increase of 2.9%). For packages weighing 4 lbs. or more, the rate increase are much more significant with increases of at least $0.53 per package.

Priority Mail Flat Rate - 2020 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE - 2020 Rates vs. 2019 Rates
Mailpiece20202019Increase
Flat Rate Envelope$7.15$6.95$0.20
Legal Flat Rate Envelope$7.45$7.25$0.20
Padded Flat Rate Envelope$7.75$7.55$0.20
Small Flat Rate Box$7.65$7.50$0.15
Medium Flat Rate Box$13.20$12.80$0.40
Large Flat Rate Box$18.30$17.60$0.70
APO/FPO Large Flat Rate Box$16.80$16.10$0.70

Postage rates for Priority Mail Flat Rate products will increase in 2020. The popular Priority Mail Flat Rate Padded Envelope will cost $7.75 in 2020 compared to $7.55 currently, a $0.20 increase. Rates for the Priority Mail Medium Flat Rate Box will increase 40 cents, to $13.20 from $12.80 currently. Rates for the Large Flat Rate Box will increase 70 cents, to $18.30 from $17.60 currently.

Priority Mail Regional Rate Boxes - 2020 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE - 2020 rates vs. 2019 rates
Box TypeZones 1 & 2Zone 3Zone 4Zone 5Zone 6Zone 7Zone 8Zone 9
A$0.03$0.07$0.09$0.16$0.42$0.58$0.90$3.05
B$0.02$0.01$0.02$0.88$0.57$0.74$0.86$4.65

Rates for Priority Mail Regional Rate Boxes will be increasing for all shipping zones in 2020. A 5 lb. package going to Zone 8 using Regional Rate Box A will increase by $0.90 to $12.10 in 2020 compared to $11.20 currently.

Regional Rate Box A packages traveling shorter distances (up to Zone 5) are seeing a modest increase of up to 16 cents. Packages traveling to farther shipping zones are increasing much more – Zone 6 is seeing a 42 cents increase, Zone 7 is seeing a 58 cents increase and Zone 8 is seeing a 90 cents increase.

First Class Package Service - 2020 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE - 2020 Rates vs. 2019 Rates
Mailpiece WeightZones 1 & 2Zone 3Zone 4Zone 5Zone 6Zone 7Zone 8Zone 9
1 ounce$0.08$0.08$0.08$0.08$0.09$0.09$0.09$0.09
2 ounces$0.08$0.08$0.08$0.08$0.09$0.09$0.09$0.09
3 ounces$0.08$0.08$0.08$0.08$0.09$0.09$0.09$0.09
4 ounces$0.08$0.08$0.08$0.08$0.09$0.09$0.09$0.09
5 ounces$0.03$0.03$0.03$0.03$0.03$0.03$0.04$0.04
6 ounces$0.03$0.03$0.03$0.03$0.03$0.03$0.04$0.04
7 ounces$0.03$0.03$0.03$0.03$0.03$0.03$0.04$0.04
8 ounces$0.03$0.03$0.03$0.03$0.03$0.03$0.04$0.04
9 ounces$0.11$0.12$0.12$0.12$0.12$0.13$0.13$0.13
10 ounces$0.11$0.12$0.12$0.12$0.12$0.13$0.13$0.13
11 ounces$0.11$0.12$0.12$0.12$0.12$0.13$0.13$0.13
12 ounces$0.11$0.12$0.12$0.12$0.12$0.13$0.13$0.13
13 ounces$0.10$0.10$0.10$0.15$0.16$0.16$0.17$0.17
14 ounces$0.10$0.10$0.10$0.15$0.16$0.16$0.17$0.17
15 ounces$0.10$0.10$0.10$0.15$0.16$0.16$0.17$0.17
15.999 ounces$0.10$0.10$0.10$0.15$0.16$0.16$0.17$0.17

Overall rates for First Class Package Service will increase by 2.2%. A 15.999 ounce package for First Class Package Service traveling to zone 8 will increase $0.17 to $5.70 in 2020 from $5.53 currently.

Packages that weigh 9 to 15.999 ounces are all seeing increases of 10 cents or more. A package weighing 15.999 ounces traveling to Zone 8 is seeing an increase of 17 cents (3.0%) to $5.70 in 2020 from $5.53 in 2019.

Parcel Select Ground - 2020 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE - 2020 Rates vs. 2019 Rates
Weight
(lbs.)
Zones 1 & 2Zone 3Zone 4Zone 5Zone 6Zone 7Zone 8Zone 9
1$0.07$0.07$0.07$0.15$0.16$0.16$0.17$0.17
2$0.22$0.23$0.24$0.26$0.29$0.31$0.33$0.33
3$0.23$0.24$0.25$0.28$0.35$0.39$0.46$0.46
4$0.23$0.25$0.26$0.30$0.41$0.47$0.53$0.53
5$0.23$0.25$0.27$0.31$0.47$0.54$0.61$0.61
6$0.24$0.25$0.28$0.41$0.54$0.62$0.71$0.71
7$0.24$0.28$0.28$0.46$0.60$0.70$0.80$0.80
8$0.25$0.30$0.33$0.51$0.65$0.78$0.90$0.90
9$0.27$0.31$0.35$0.54$0.71$0.84$1.00$1.00
10$0.38$0.43$0.47$0.79$1.03$1.24$1.46$1.46

Overall rates for Parcel Select Ground will increase by 2.5% in 2020. A 2 lb. package going to Zone 8 will increase $0.33 to $10.89 in 2020 from $10.56 currently.

NEW: Parcel Select Ground rates are now cheaper than Priority Mail for all weights and shipping zones. For a 2 lb. package traveling to Zone 8, Parcel Select is cheaper by 30 cents ($10.89) compared to Priority Mail ($11.19).

Media Mail - 2020 Rates

INCREASE PER PACKAGE - 2020 Rates vs. 2019 Rates
Weight
(lbs.)
20202019Increase
1$2.80$2.75$0.05
2$3.33$3.27$0.06
3$3.86$3.79$0.07
4$4.39$4.31$0.08
5$4.92$4.83$0.09
6$5.45$5.35$0.10
7$5.98$5.87$0.11
8$6.52$6.39$0.13
9$7.06$6.91$0.15
10$7.60$7.43$0.17

Media Mail rates will increase by 1.9% in 2020. A 1 lb. package traveling to Zone 8 will increase 5 cents, to $2.80 in 2020 compared to $2.75 currently.

Stamps.com Will Automatically Update to the New USPS Rates on January 26, 2020
Once the rates are approved by the PRC, Stamps.com will automatically update all USPS rates inside the software and web-based version (Stamps.com Online) on Sunday, January 26, 2020. If you are a Stamps.com customer, no additional actions are needed and you will AUTOMATICALLY see the 2020 USPS rates in the platform.

Finding Profits At Estate Sales Part II: The Garage

August 28th, 2019 Comments off

If you’re interested in selling high-profit items on eBay, you should definitely be frequenting estate sales.  Part one of this multi-part series focused on the kitchen.  Next stop?  The garage!

Garages are filled with goodies just waiting to be snapped up by savvy sellers.  The more disorganized the garage, the better.  There’s gold hiding in them thar piles!

Tools

First of all, focus on tools – especially vintage tools.  Both modern and vintage tools can be worth quite a bit on the resale market.  We recently bought a planer for $5 and sold it for over $400 on eBay.  Tools made by brands such as Snap-on, Mac, and DEWALT are always in demand.  Vintage “Made in America” hand tools such as crescent wrenches should be on your radar.  Vintage axe heads are another favorite of ours. 

Home Improvement Items

In addition, look for home improvement items.  Higher-end faucets and sinks bring in the big bucks if they are new or almost new. And cabinet pulls can be sold in lots.  At a recent yard sale, we purchased a $950 sink new in the box for $20 and sold it for $300.  The man who sold it to us had won it at a Christmas party.  (He worked for a home improvement company.)  We didn’t have to ship it because we had it listed as local pickup only. 

Fly Fishing Gear

Oh, where to start?  Americans love to fish, and fly fishing is all the rage!  Look for newer gear by brands such as Scott, Sage, Echo, Thomas & Thomas, and G. Loomis.  Old bamboo fly rods and vintage Fenwick poles are fan favorites (be sure to ship fishing rods in USPS mailing tubes).  In addition, don’t miss out on buying fly reels.  They are easy to photograph, easy to sell, and easy to ship.  Next, pay attention to vintage lures – the older the better.  And don’t miss the clothing produced by Simms and Filson.  Use your phone to look up current selling prices. 

New and Vintage Christmas Ornaments

While hunting for treasures, don’t miss out on Christmas ornaments.  Christmas ornaments sell year-round. Vintage ornaments in their original boxes are especially valuable.  Modern ornaments are also in demand.  Christopher Radko pieces, for example, are strong sellers.  And be on the lookout for pieces made by Swarovski.  Swarovski designs a new ornament for each and every year.  These crystal masterpieces are hot property and can sell for hundreds of dollars.  The most valuable Swarovskis are those in the original boxes with certificates of authenticity. 

Automobile and Bicycle Parts

Finally, keep your eyes peeled for automobile and bicycle parts.  Sourcing them can be a bit complicated, so be sure to research each piece before you buy it.

Yup.  Estate sales can be full of amazing items just waiting to be flipped on eBay. So get in line early, and when the doors open, head for the garage!

See part one: Finding Profits At Estate Sales: The Kitchen

About the Author

Miriam Otto is an eBay blogger and credentialed teacher with 13 years’ experience selling on the site.  She was a frequent guest on eBay Radio and has participated in eBay seller panels and projects.  Her blog, The eBay Life, is an all-in-one resource for eBay sellers.

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