It hasn’t made sense to call First Class Package Service (FCPS) by that name since the USPS reclassified it to a “competitive” service. That’s because whenever there’s a change to “market dominant” rates, it includes First Class mail, but doesn’t include First Class Package Service.
So it isn’t exactly surprising that the USPS would finally rename FCPS. But choosing to rebrand it “USPS Ground Advantage” beginning July 9, 2023, could cause a different kind of confusion – USPS can be read as UPS (and vice versa) if quickly skimming the words. Imagine asking an employee to send something USPS Ground (for short), and they end up sending it UPS Ground, and vice versa.
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The similarities don’t end there, and that seems to be the point.
On Thursday, the USPS filed its intention with the Postal Regulatory Commission (PRC) 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,” it explained in the announcement.
Currently FCPS is for parcels weighing up to 15.999 ounces, so what’s going on here? USPS Ground Advantage is more than FCPS – it will also incorporate USPS Retail Ground and Parcel Select Ground (offering cubic rates).
As the USPS noted in Friday’s press release, “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.”
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According to an article in FreightWaves, “The product is aimed at shippers willing to sacrifice speed for price. It is also intended for users of the Postal Service’s Priority Mail service, who need two- to three-day transit times but don’t want to pay Priority Mail’s pound-based prices.”
However, skimming the full filing on the PRC website indicates some caveats for sellers (a more thorough analysis is warranted by sellers before using the service), including the following:
- Pickup On Demand Service: Add $26.50 for each Pickup On Demand stop (See update below.)
- Oversized Pieces: Regardless of weight, any piece that measures more than 108 inches (but not more than 130 inches) in length plus girth must pay the oversized price. As stated in the Domestic Mail Manual, any piece that is found to be over the 70 pound maximum weight limitation is nonmailable, will not be delivered, and may be subject to the $100.00 overweight item charge.
(Also see the USPS notice of changes for Parcel Select on the PRC website.)
The Postal Service explained the significance of new service: “The research indicated that the “USPS Ground Advantage” name will create an identifiable brand in the package market that is closely associated with the broader postal brand and clearly indicates the product is a strong option for customers’ ground shipping needs. The Postal Service expects USPS Ground Advantage will soon become a powerful brand name in the ground package market.”
It said the service would have a “minimal impact on competitors and the broader package market,” and “Customers, competitors, and the broader market will all benefit from improved brand clarity.”
The new service will be available on July 9, 2023 – a good indication of when the USPS will make its 2nd rate change of the year.
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Update 2/13/2023: The USPS clarified USPS Ground Advantage packages are eligible for free package pickup, providing us with the following statement:
“USPS offers various pickup types, including on-demand pickups and our no-fee package pickup option. Select products are eligible for free package pickup, which will include USPS Ground Advantage and currently includes Parcel Select Ground. This no-fee package pickup option provides exceptional value and convenience to customers, who can schedule package pickup requests up to a year in advance at no cost with their regular mail delivery. Interested customers can view the full list of eligibility requirements and schedule package pickup requests at www.usps.com/pickup.”
We’ve asked for clarification on what the $26.50 pickup on demand service refers to in the filing and will update this article again when we have more to share.
Update 2/16/2023: We received the following response from the USPS with regard to the pickup fee:
“The $26.50 fee refers to the Pickup on Demand Service, which is available to customers who want to have packages picked up on a specific day and time or available date outside of their carrier’s regular delivery route. The Pickup on Demand Service pricing is noted in the Notice 123 | Postal Explorer (usps.com).
“The no fee Carrier Pickup Service allows customers to schedule a carrier en route package pickup. This service is free because the carrier picks the packages up while on their delivery route.”
Thanks to the USPS for the clarification.
Source: https://t-tees.com
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