Each definition is deliberately short and links out to the page that answers the money question, because the rate table, not the definition, is where the decision gets made.
Shipping Glossary: What Each Term Costs You
Plain-English definitions for the 32 USPS and UPS terms that show up on an invoice, with what each one changes about the price.
The base rate
How the starting price is set: by distance, by box, by volume or by discount tier. 5 terms
- Commercial Plus PricingUSPS Commercial Plus Pricing (CPP)A former USPS volume discount tier for Priority Mail; the domestic price list now shows Retail and Commercial only
- Cubic PricingUSPS Cubic PricingA USPS commercial rate that prices Priority Mail and Ground Advantage parcels by volume instead of weight
Cubic size = (L × W × H) ÷ 1,728 - Flat Rate ShippingA fixed box price that ignores weight and zone, which helps on heavy far parcels and hurts on light ones
- USPS Regional Rate BoxesUSPS Regional Rate Boxes (Discontinued 2023)A retired USPS Priority Mail box line that priced heavy, compact parcels by zone instead of weight
- Zone-Based PricingThe rate structure where cost rises with the distance between origin and destination ZIP codes
Size and weight
What the parcel weighs and measures, and the correction when the declared figures are wrong. 5 terms
- Automated Package Verification (APV)USPS Automated Package VerificationThe USPS system that reweighs and remeasures parcels in transit and corrects the postage
- Billable WeightThe greater of a package's scale weight and its dimensional weight, which is what carriers charge
Billable Weight = max(Actual Weight, Dimensional Weight)Dimensional Weight = (Length × Width × Height) ÷ DIM Divisor - DIM WeightDimensional WeightPricing by box size rather than scale weight, using a divisor of 139 at USPS, UPS and FedEx
L × W × H (in inches) ÷ DIM divisor = DIM weight (lbs) - GirthPackage GirthThe distance around a package's two smaller sides, added to length to test oversize limits
Girth = (2 × Width) + (2 × Height)Length + Girth = Length + 2 × Width + 2 × Height - Postage DuePostage Due (USPS APV Adjustment)A USPS charge for the difference when a reweighed package needed more postage than you paid
Surcharges
Fees added on top of the base rate for the season, the address, fuel or an awkward parcel. 4 terms
- Additional Handling SurchargeAdditional Handling Surcharge (AHS)A UPS and FedEx fee for parcels that resist automated sorting by length, shape, weight, or packaging
- Fuel SurchargeA weekly-resetting percentage UPS and FedEx add to the base transportation charge
- Peak SurchargePeak & Demand SurchargesSeasonal holiday fees carriers stack on top of base rates and existing accessorials from October to mid-January
- Residential SurchargeResidential Delivery SurchargeA UPS and FedEx fee for delivering to a home address, applied on the carrier's own classification
Services
USPS services you buy by name, each with its own rules on contents, speed or proof. 4 terms
- Certified MailUSPS Certified MailA USPS service that creates a mailing receipt and a delivery record for important documents
- Ground AdvantageUSPS Ground AdvantageUSPS's standard ground service: up to 70 lb, 2-5 business days, $100 insurance included
- Registered MailUSPS Registered MailUSPS's most secure service, with signed chain-of-custody handling for valuables
- USPS Media MailA discounted USPS service restricted to books, recorded media, and educational materials
Add-ons and returns
Extras bought one parcel at a time: coverage, a signature, a redirect, a prepaid way back. 4 terms
- Return LabelReturn Label / Return ShippingA prepaid label that lets a recipient send a package back without paying postage at drop-off
- Shipping InsuranceCoverage that reimburses the declared value of a package lost, stolen, or damaged in transit
- Signature ConfirmationAn add-on that requires someone at the address to sign before the carrier releases the package
- USPS Package InterceptA paid USPS request to redirect, return, or hold a package after it ships but before delivery
Customs and restricted goods
The declarations and trade terms that set duty, and the rules on what may travel at all. 5 terms
- Customs FormCustoms Form (International Shipping)The declaration attached to an international shipment stating contents, value, and origin
- DDP vs DDUDelivered Duty Paid vs Delivered Duty UnpaidTwo delivery terms that decide whether you prepay import duties or your buyer pays at the door
- HAZMAT ShippingHazardous Materials ShippingThe regulated transport of dangerous goods such as lithium batteries, aerosols, and perfume
- HS CodeHarmonized System CodeThe customs classification number that sets the duty rate and import rules for a product
- IncotermsInternational Commercial TermsStandard trade terms that define who pays shipping and duty and where risk transfers
Labels and tracking
The label, the barcodes and the scans that say where a parcel is. 5 terms
- Informed DeliveryUSPS Informed DeliveryA free USPS service that emails recipients grayscale previews of incoming mail and packages
- Package TrackingThe scan trail that tells you whether a shipment is fine, stalled, or already a claim
- SCAN FormShipment Confirmation Acceptance NoticeOne master barcode that accepts an entire batch of USPS packages into the network at once
- Shipping LabelThe printed document a carrier reads to route, bill, and track a package at machine speed
- Tracking NumberThe unique code assigned when a label is created, used to confirm delivery and file claims
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