On May 12th, the Postal Service will adjust prices for its services. While the most visible change is the 1-cent increase for First-Class Mail letters, the changes are broader and include prices that could save you real dollars when shipping packages. Some of these changes include reduced Express Mail prices for items shipped to addresses closer to home; lower online postage prices for Express Mail and Priority Mail (domestic and international); volume Express Mail price rebates for frequent shippers; additional flat-rate box prices for Priority Mail.

The information below will help you determine just how much you can save.

Shipping Services

The Postal Service will adjust prices for their shipping services - Express Mail, Priority Mail, Parcel Select, Parcel Return Service, and International Mail. For the first time, their pricing includes commercial volume and contract prices, rebates, online price reductions, and other new incentives.

"These innovative pricing incentives will make our products more attractive to all shippers, especially small businesses. We're pricing our products to sell in today's competitive shipping market," said Postmaster General, John Potter.

Pricing Highlights:

• Express Mail is switching to a zone-based pricing system, resulting in customers paying less for nearby destinations. Customers will receive a 3 percent price reduction by purchasing Express Mail online or through corporate accounts. Additional price reductions are available for those who ship quarterly minimums.
• Priority Mail will have an average 3.5 percent savings for customers who use electronic postage or meet other requirements.
• Parcel Select - "last mile" delivery to every door - will feature pricing and volume incentives for large and medium-size shippers.
• Parcel Return Service will move entirely to a weight based pricing system, resulting in significant price reductions for many lighter packages.

"Pricing has always been important to the Postal Service. Now, with greater pricing flexibility than ever, our customers have more choices, and we can price quickly in response to customer needs and the marketplace," said Pricing and Classification Vice President, Stephen Kearney.

Mailing Services

The Postal Service will also adjust prices for mailing services - First-Class Mail, Standard Mail, Periodicals, Package Services, and Special Services. The average increase by class of mail is at or below the rate of inflation as measured by the Consumer Price Index.

A First-Class Mail stamp will be 42¢. Customers can continue to use the Forever Stamps that they purchased prior to May 12th at 41¢, even after the price change. The Postal Service will have 5 billion Forever Stamps in stock to meet increased demand before the price change. Forever Stamps are widely available through Post Offices, Contract Postal Units, consignment locations, Automated Postage Centers, vending, and at The Postal Store®. They also will have a 62¢ stamp available shortly after May 12th for 1-ounce nonmachinable First-Class Mail letters, such as square greeting cards.

Pricing highlights:

• No change in the First-Class Mail single-piece additional-ounce price.
• Lower additional-ounce price for presorted First-Class Mail letters.
• Lower pound price for Standard Mail saturation and high-density flats.
• Shape-based pricing for First-Class Mail International letters, flats, and parcels.
• First-Class Mail International price groups expand from five to nine groups.