Businesses and organizations that send large volumes of mail can significantly reduce operating expenses by utilizing United States Postal Service (USPS) volume discounts. This system, commonly referred to as bulk rate postage, offers lower pricing in exchange for the sender performing specific preparation tasks. Accessing these reduced rates transforms a standard mailing operation into an efficient, commercial logistics process.
What is Commercial Mail?
The official USPS terminology for bulk rate postage is “Commercial Mail” or “Presorted Mail,” distinguishing it from retail postage purchased by individual customers. Retail postage includes the full cost of all USPS handling, sorting, and transportation. Commercial mail rates are discounted because the sender assumes responsibility for a portion of the logistical work otherwise handled by the Postal Service.
This discounted system requires the mailer to pre-sort, tray, and label the mailpieces according to specific USPS regulations before induction. By outsourcing this initial preparation, the USPS saves time and labor within its processing centers. These efficiencies allow the savings to be passed directly to the high-volume sender. This system is designed for businesses and organizations with regular, large-scale mailing needs.
Key Requirements for Eligibility
Accessing commercial postage rates requires meeting specific volume thresholds for each mailing submitted. A business must send a minimum of 200 identical mailpieces or 50 pounds of mail in a single mailing to qualify for reduced commercial rates. Falling below this minimum volume means the entire mailing must be processed at the higher, single-piece retail rate.
Mailers must also obtain a Mailing Permit from the USPS, which authorizes the use of commercial rates. This requires submitting USPS Form 3615, “Application for a Permit to Mail,” and paying an initial application fee, followed by an annual maintenance fee. The permit is tied to the specific Post Office location where the mail will be deposited, known as the Post Office of Mailing.
A third requirement involves ensuring address standardization and accuracy across the entire mailing list before physical preparation begins. The USPS mandates the use of specialized software to perform Coding Accuracy Support System (CASS) certification on all addresses. CASS certification standardizes and verifies addresses as deliverable, which is necessary before the mail can be sorted and prepared for commercial entry.
Understanding Different Mail Classes
Commercial pricing is applied across different mail classes, each serving distinct purposes and delivery expectations. The most common use of bulk rate is through USPS Marketing Mail, formerly known as Standard Mail. This class is designed for non-urgent advertising materials, such as flyers, catalogs, and promotional letters, and represents the deepest discounts available for high-volume senders.
First-Class Mail Presort is utilized for time-sensitive materials like invoices, monthly statements, or personalized correspondence. Although this class offers smaller discounts compared to Marketing Mail, the volume preparation still results in significant savings over retail postage. This mail stream maintains the USPS’s highest priority for handling and delivery speed.
The system also includes Periodicals, a specialized class reserved for publishers of newspapers, magazines, and other serial publications. This classification has unique eligibility criteria related to content, frequency, and readership. It benefits significantly from the volume-based preparation and entry discounts. Each mail class requires distinct preparation standards to qualify for its respective commercial rates.
The Essential Steps to Start Bulk Mailing
The transition to commercial mailing begins with establishing the administrative framework at the chosen Post Office of Mailing facility. This involves obtaining the mailing permit and paying the associated fees at the local facility where the mail will be processed. Once the permit is active, preparation of the mailing list must take place to leverage the commercial rates.
Preparing the data requires cleaning the list and running it through CASS-certified software to ensure every address is correct and standardized to USPS specifications. Following certification, the mailpieces must be physically sorted according to precise USPS regulations. This often involves sorting into groups like 5-digit, 3-digit, or Area Distribution Center (ADC) zones, ensuring the mail is bundled correctly for efficient transport.
After physical preparation is complete, the mailer must generate the necessary documentation, referred to as a Postage Statement. This statement, usually created by specialized mailing software, details the volume, mail class, and specific level of preparation for every piece. This document serves as the official verification and calculation of the postage due.
The final step is depositing the prepared and documented mail at the local Business Mail Entry Unit (BMEU), the dedicated commercial processing center. The BMEU staff verifies the accuracy of the sorting, physical preparation, and the Postage Statement. Once verified, the mail is officially accepted into the USPS network for distribution at the reduced commercial rate.
How Commercial Mail Pricing Works
Commercial mail pricing operates on a tiered structure where the cost per piece is directly related to the amount of work the sender performs before induction. The closer the mail is sorted to the final delivery point, the lower the postage rate becomes. For instance, mail bundled to the 5-digit ZIP Code level receives the lowest per-piece rate, while mail sorted only to a broad, mixed Area Distribution Center (AADC) level is comparatively more expensive.
Further discounts can be accessed through Destination Entry, where the mailer transports the prepared mail closer to the recipient’s local processing facility instead of dropping it at the point of origin. Dropping the mail at a Destination Sectional Center Facility (SCF) or a Network Distribution Center (NDC) bypasses large portions of the USPS transportation network. These deeper entry discounts reward the mailer for taking on the logistical costs.
Ultimately, the final price is calculated based on a combination of factors that define the mailpiece and its preparation. These factors include the selected mail class, the physical characteristics of the mailpiece (like weight and shape), and the specific level of preparation and entry point used. This system incentivizes mailers to invest in high levels of preparation to maximize their postage savings.