Small tidbit: USPS to cancel the retail discount on postage

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**rgdgaming**

https://www.mytotalretail.com/article/how-to-prepare-your-brand-for-the-shuttering-of-usps-reseller-program/

For those unaware, retailers benefited from discounts on shipping labels for things like USPS or UPS etc. it was a nice medium to get customers their items within relatively fast times and cost. Seems though the post office in the US is ready to adjust this to make back billions it potentially could receive, presuming packages remained the same.

Might have more impact on your shopping choices, or more gravitation toward alt carriers.

Thought it was worth a mention

**Monkeysloth**

Reading up on this the USPS was allowing other companys to sell discounted postage to smaller companies and there was a lot of non-compliance/abuse during COVID on those companies charging more to the small business they they should have been.

The replacement is smaller companies dealing directly with USPS much like they would UPS or FexEx for discounts and most won't see a change.

“The high-volume brand, the omnichannel retailer, in all likelihood is using a mix of carriers that includes next-day and same-day service … but the SMB doesn’t really have access to those because they don’t have volumes,” he said. “This move I don’t think will have a material impact on large retailers. I think it is sort of a win for small businesses. Priority mail rates will be attractive. … For the ounce-based parcels, there really isn’t any competition. UPS doesn’t have a comparable product yet. FedEx doesn’t have a comparable product yet. To get the best deals for ounce-based shipping, under a pound, the Postal Service is still the best option.”

The only SMBs that will see changes are those that had relationships with resellers, Elyassi-Rad said. But if there is enough volume, the SMB may be able to strike a similar, or even better deal, with the Postal Service directly, he noted.

https://www.freightwaves.com/news/postal-service-ending-reseller-program-could-reduce-shipping-costs-for-some

**Kid_Kyoto**

Hopefully it won't be a change, this could kill a lot of smaller retailers. I love some of the model shops out there (waves at Cult TV Man) but if I can get free shipping from Amazon...

**Kanluwen**

Kid_Kyoto wrote:
Hopefully it won't be a change, this could kill a lot of smaller retailers. I love some of the model shops out there (waves at Cult TV Man) but if I can get free shipping from Amazon...

Your free shipping from Amazon is heavily subsidized by USPS.

**Tannhauser42**

I wonder how this will impact eBay sellers? My wife just started selling stuff on eBay, and getting her postage though eBay is cheaper than doing it at the post office.

**Monkeysloth**

Tannhauser42 wrote:
I wonder how this will impact eBay sellers? My wife just started selling stuff on eBay, and getting her postage though eBay is cheaper than doing it at the post office.

The article I posted listed that Etsy was still able to offer the same rate for buying postage so I would assume Ebay is the same. Same with places like Stamps.com.

**morganfreeman**

As the article pointed out and someone said, many small business were paying higher-than-USPS rates because they were shippping through a third party that had access to discounts but was price gouging. This this won’t increase anyones actual price to ship goods, it’s just going to curb price gouging and encourage business to deal directly with USPS.

OP trying to frame this as a cash grab by the USPS is very strange, and seems like a fundamental misunderstanding of the information given.

**Monkeysloth**

morganfreeman wrote:
As the article pointed out and someone said, many small business were paying higher-than-USPS rates because they were shippping through a third party that had access to discounts but was price gouging. This this won’t increase anyones actual price to ship goods, it’s just going to curb price gouging and encourage business to deal directly with USPS.

OP trying to frame this as a cash grab by the USPS is very strange, and seems like a fundamental misunderstanding of the information given.

It does get the USPS more money there were fees USPS paid, much like amazon associate fees, to those resellers from what I'm gathering from a few other articles. USPS will no longer be paying those fees.

**Mr. Burning**

Monkeysloth wrote:
Tannhauser42 wrote:
I wonder how this will impact eBay sellers? My wife just started selling stuff on eBay, and getting her postage though eBay is cheaper than doing it at the post office.

The article I posted listed that Etsy was still able to offer the same rate for buying postage so I would assume Ebay is the same. Same with places like Stamps.com.

Ebay and Etsy et al have massive buying power. I should imagine the volumes these platforms offer USPS and other international Postal services will mean costs will stay relatively low (compared to rates for individuals/small traders)