New Postal Product: Ground Advantage

As part of its overall strategy to enhance its shipping offerings, the United States Postal Service (USPS) filed a procedural filing with the Postal Regulatory Commission (PRC) notifying the commission of the Postal Service’s intention to replace its existing First-Class Package Service category with USPS Ground Advantage. USPS Ground Advantage will feature two-to five day service standards for packages up to 70 pounds.

The filing streamlines and simplifies package shipping options for customers and enhances the Postal Service’s ground product offering with the anticipated summer 2023 launch of this improved ground product.

In the filing, the Postal Service is notifying the Commission of its intent to rename the First-Class Package Service product and introduce the Postal Service’s enhanced ground product — USPS Ground Advantage. USPS Retail Ground, Parcel Select Ground, and First-Class Package Service will be incorporated into USPS Ground Advantage.

Over the past year, the Postal Service has focused on improving its package offerings by improving service reliability, lowering prices, and simplifying shipping product offerings, including:

• Lower Prices for Shipping Services. In January 2022, the Postal Service implemented new pricing for Shipping Services. As a result of the implementation of approved price changes, shipping rates for USPS Retail Ground products were reduced by 7 percent, and rates for Parcel Select Ground were reduced by 12 percent, on average. USPS Retail Ground and Parcel Select Ground prices remain at the lowered, January 2022 rates.
• Improved Reliability Through Upgraded Service Standards. In August 2022, the Postal Service implemented upgraded service standards for its USPS Retail Ground and Parcel Select Ground products, aligning service standards with the current First-Class Package Service product within the contiguous United States. Service standards for these products were accelerated from two-to-eight-days to two-to-five-days for the same affordable price.
• Simplifying Shipping Product Offerings. On October 28, 2022, the Postal Service was granted approval by the PRC to remove USPS Retail Ground from the Competitive product list, eliminate Parcel Select Ground from the Parcel Select product, and expand First Class Package Service to 70lbs among other enhancements.

Clearly USPS is continuing its efforts to compete head on with UPS and FedEx for Ground package services. With a possible work stoppage at UPS this summer, this new service and previous lower price offerings might be just what the doctor ordered.

Need help navigating this change or looking to get a hold of your shipping expenses?  Reach out to one of our parcel experts today to help.