David Steiner, a member of FedEx's board of directors since 2009, has been selected as the 76th Postmaster General and CEO of the USPS. While he won't start until July, USPS is already shaking things up with a new Priority Mail Next Day service. Today, we're discussing the guidelines for the new service, who is eligible, and whether this low-cost alternative poses a threat to UPS and FedEx's similar services.

USPS Priority Next Day Service: Who is It for?

For businesses with a negotiated shipping agreement (NSA), Priority Mail Next Day means you can now get packages to customers and other businesses overnight if they're within 150 miles of USPS's 60 regional Processing and Distribution Centers throughout the US. As this service is only available to clients with an NSA, pricing is on a case-by-case basis, and clients must arrange transportation to the facilities with USPS in advance.

While the USPS is working to expand this service, stating it will reach 87% of the US population (about 295 million people) each day, Priority Next Day currently serves 3,000 ZIP codes for pickup and 6,300 for delivery.

On its website, you can discover where Priority Next Day is available and the reach from a specific location. For example, with pickup in Dallas, the service reaches 1,928,814 people and 91,539 businesses. If USPS collects the parcel from Los Angeles, the service reaches 5,071,750 people and 273,910 businesses.

Time to Say Goodbye to FedEx and UPS?

With short delivery times, low rates, and no surcharges for residential and rural deliveries, making the switch from the major carriers is tempting. But is it a good decision?

The USPS website says, "With Priority Mail® Next Day, the expected delivery date reflects a delivery time of 1 business day and is based on the specified origin, destination, and drop-off time in most cases. The expected delivery date does not come with a money-back guarantee."

These comparable services from UPS and FedEx are eligible for a money-back guarantee:

●       UPS 2 Day Air A.M.®
●       UPS Next Day Air®
●       UPS Next Day Air Saver®
●       UPS Next Day Air® Early
●       FedEx First Overnight®
●       FedEx Priority Overnight®
●       FedEx Standard Overnight®
●       FedEx 2Day® A.M.
●       FedEx First Overnight Extra Hours
●       FedEx Priority Overnight Extra Hours
●       FedEx Standard Overnight Extra Hours

Each year, more than $3 billion in shipping refunds go unclaimed. And those are parcels that are eligible for refunds. USPS argues that a lack of guarantee is what enables them to offer lower pricing.

Our recommendation? Stick with your carrier and sign up for ShipRx's automated parcel audits to ensure you don't miss out on any refunds you're owed. Our proprietary software checks over 40 different factors on every label you create.

ShipRx's free Savings Analysis gives you insights into how you can save money now, through contract negotiations, and in the long term, with parcel audits. Get in touch today and start seeing savings— even before David Steiner starts his new position!