Worth the Upgrade?: Comparing Domestic USPS First Class and USPS Priority Mail

USPS Priority Mail Small Flat Rate Box

A USPS Priority Mail Small Flat Rate box cost $5.95 in retail postage (as of May 15, 2015)

USPS Priority Mail is often touted as a premium shipping method that’s faster and superior to the less expensive USPS First Class.

Packages weighing 13 ounces and under qualify for USPS First Class shipping, a cheaper shipping method than USPS Priority Mail. Sometimes sellers opt to “upgrade” to USPS Priority Mail, often passing along extra costs to buyers. But is mailing a package through USPS Priority Mail actually a better value than USPS First Class?

Shipping Time
First Class (1-3 business days) 
Priority Mail (1-2 business days)
Priority Mail packages will usually arrive in the same amount of time or possibly one day faster than First Class. Priority Mail typically arrives in 1-2 business days. First Class packages typically arrive in 1-3 business days. Delivery times through both First Class and Priority are estimates only and not guaranteed by the post office.

Affordability
First Class ($4.12 maximum retail rate)
Priority Mail ($5.95 minimum Flat Rate retail rate)
A 13 ounce package costs $4.12 (retail rate) with USPS First Class while a Priority Mail 2-Day Small Flat Rate Box costs $5.95 (retail rate).

Packing Material
First Class (use your own box or envelope)
Priority Mail (FREE USPS boxes and envelopes; option to use your own box or envelope [variable weight packages only])
One of the perks of Priority Mail is the free shipping supplies that you can pick up in the post office or order online at USPS.com. You can also use your own box or envelope for variable weight Priority Mail packages only (not applicable to Flat Rate).

Insurance
First Class (no insurance provided; purchase your own insurance)
Priority Mail (Free insurance up to $50 or up to $100 for eBay Top Rated Sellers)
Priority Mail provides some free insurance. First Class does not provide any free insurance. Consider that many new sellers overestimate the importance of insurance. Statistically, lost USPS packages are very, very rare. Over thousands of transactions as both a buyer and seller, I’ve only experienced a handful of lost packages. Some packages might take the scenic route, but nearly all USPS packages arrive safely at their destination.

Free USPS Carrier Pickup
First Class Packages (qualify for FREE carrier pickup)
Priority Mail Packages (qualify for FREE carrier pickup)
Both First Class packages and Priority Mail packages qualify for free USPS carrier pickup. See the USPS.com Schedule a Pickup page for more information.

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The Verdict? Priority Mail adds some convenience for sellers; increases shipping costs, adding minimal value to buyers
Shipping packages 13 ounces and under with USPS Priority Mail primarily benefits sellers. Sellers enjoy the convenience of the free shipping materials and flat rate pricing (no postal scale required) and the security of the built in $50 of insurance (or $100 for eBay Top Rated Sellers). Priority Mail retail costs $1.83 to $3.88 more than First Class retail packages. If a buyer’s order costs $20 (including First Class shipping), a $3.88 Priority Mail upgrade would raise the buyer’s price by nearly 20%.


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