It’s all in the packing – from size to services

5 ways to cut office shipping costs

As you face the shipping and mailing price changes planned by the USPS® for January 22, 2017, the thought of overall increases may have you despairing. But there are numerous ways to reduce your shipping costs, and they don’t have to be complicated.

2

Introduce the following measures and reap savings with future sending.

3

4

Major carriers, including USPS®, UPS® and others, base their shipping rates on Dimensional Rating (DIM) for packages rather than weight alone.

Dimensions include height, width and length of the package, no matter what the contents.

Pre-planning helps, so ask yourself:• How many different types of boxes do you use and can you reduce that number?

• Can you consolidate the box sizes, minimizing the need to measure each box?

• Are you shipping boxes with empty space and extra filler material?

• Can you use Flat Rate boxes provided by USPS?

Small box size makes a big difference01

Within the sizing guidelines is an option called folding boxes. These multi-depth brown corrugated shipping boxes are designed to be cut to the size you need, allowing you to minimize the size of the package. To help customers keep costs down, Pitney Bowes can supply these boxes.

USPS® Flat Rate Boxes offer flat postage rates, despite the weight (as long as it is under 70 pounds).

As long as the contents fit, items ship at a flat rate no matter what Zone (Postal Code) they are being sent to.

This option is ideal for certain shipping needs, but is not always the most cost-effective, so make sure you identify where the savings benefits end.

Flat rate packaging – handle with care02

7

USPS® also offers regional rate pricing with Flat Rate Boxes. This one- to three-day service:

• Can provide savings over standard Flat Rate Boxes

• Is available for Priority Mail® parcels and Merchandise Return Service (MRS) where parcels are returned at Priority Mail prices

• Includes tracking if the package bears an Intelligent Mail® package barcode (IMpb) or retail tracking barcode

• May include insurance

• Requires shippers to use USPS-produced Priority Mail Regional Rate Boxes to qualify for Regional Rate Box pricing

Step it up with regional rate packaging03

As part of the IMpb service, the USPS® has introduced a second tier of pricing for its most common shipping services.

The IMpb is a barcode format that includes information about your specific shipment, enabling the USPS to track packages from pick-up to delivery.

8

9

The IMpb service:• Enables you to qualify for Commercial Base® Pricing (CBP), which could mean significant savings on postage

• Provides free insurance ($50 on Priority Mail® or $100 on Priority Mail Express™), all without going to the Post Office™.

• Allows you to access reliable, end-to-end tracking information for you and your customers

• Offers the best commercial prices with significant discounts

Ship smart with Intelligent Mail®04

10

USPS® offers two services for smaller packages under 13 ounces, First Class Mail and First Class Package services.

First Class Mail Retail Parcels:• Are between 1–13 ounces, with contents being personal correspondence

• Are closed to postal inspection

• Must be processed at the Retail rate

With the 2017 rate increase, First Class Mail Parcels from one to four ounces will cost $2.67, with an increasing scale to 13 ounces at $4.29.

The second option for shipping goods is the First Class Package Service. (See next slide for details.)

Know the difference between First Class Mail and First Class Package services05

11

The second service USPS® offers for smaller packages is its First Class Package service.

First Class Package service:• A less expensive alternative to First Class Mail service

• Consists of non-personal correspondence that can be sent at CBP rates using a full shipping label

• Is considered a more typical option for commercial shipping of goods

The 2017 rate increase for the First Class Package Service will cost $2.61 for one to four ounces with an increasing scale up to 15.999 ounces at a cost of $4.30. Benefits include tracking and delivery timing using the barcode shipping label, and free insurance.

Know the difference between First Class Mail and First Class Package services (cont’d)05

For more information on how to leverage these cost savings for your shipping and mailing needs, visit Pitney Bowes.

12Pitney Bowes and the Corporate logo are trademarks of Pitney Bowes Inc. or a subsidiary. All other trademarks are the property of their respective owners. © 2017 Pitney Bowes Inc. All rights reserved.