Small businesses will suffer a $2.3 billion bite as a result of the postal hike taking effect this week, according to a study by the National Federation of Independent Business (NFIB).
The increase will also lead to a loss of 5,000 jobs and $60 million in disposable income in the U.S., the NFIB said.
In other findings, the NFIB reported that small businesses prefer to use competitors to the U.S. Postal Service--when available--rather than cut volume.
The study also shows that almost 60% of small firms will take no action if first-class rates rise by 6 cents or 10 cents. But 20% will cut volume, and another 16% will shift from first class to cheaper forms of mail.
More than half of all small businesses use Priority/Express Mail, but 40% said they would change service providers if rates rise 10% to 15%. And 40% would switch from USPS parcel services in response to a similar hike.
The $2.3 billion in added costs will be split equally between firms with one to nine employees, and those with 10 to 99.
"Small business is sending the USPS a warning sign: Continue to hike rates and we will continue to find alternatives to using the post office," said Andrew Langer, NFIB's regulatory policy manager, in a statement.
The NFIB expects the additional costs to fall disproportionately on service firms (including the finance sector). A third of the direct costs will hit the trade sector, which includes both wholesalers and retailers.
The survey is based on NBIF's Regulatory Impact Model.
