USPS has announced plans for a 2021 temporary price increase during the peak holiday season. Beginning on October 3rd, the US Postal Service will temporarily raise prices on certain domestic services (pending approval by the Postal Regulatory Commission). If approved, this temporary rate increase will remain in place until December 26th.
The USPS 2021 Temporary Price Increase (Proposed)
The temporary price increase varies depending on the type of service you choose, how much your package weighs, and which USPS zone you’re shipping to. We’ve laid out all the USPS services that will increase below, and by how much.
Note: all the increases we’ve laid out below are consistent across both Retail Rates (what you pay at the Post Office) and Commercial Pricing rates, which you can access by using free shipping software to buy discounted USPS postage online.
First Class Package Service
- $0.30 increase
Priority Mail Flat Rate and Priority Mail Express Flat Rate
- $0.75 increase for all Priority Mail Flat Rate and Priority Mail Express Flat Rate boxes and envelopes
Weight-Based Priority Mail, Priority Mail Express, and Parcel Select Ground
- $0.25 increase for Zones 1-4, 0-10 lbs
- $0.75 increase for Zones 5-9, 0-10 lbs
- $1.50 increase for Zones 1-4, 11-20 lbs
- $3.00 increase for Zones 5-9, 11-20 lbs
- $2.50 increase for Zones 1-4, 21-70 lbs
- $5.00 increase for Zones 5-9, 21-70 lbs
None of the international services USPS offers will increase in price.
Why is USPS Imposing Another Price Increase?
All shipping carriers increase prices every year for their services, not just USPS. This is due to inflation, rising transportation costs, and normal price fluctuations within the market as a whole. However, USPS has imposed more price increases throughout the past several months than is typical for the agency. Once approved by the PRC, this proposed temporary price increase will be the third price hike by the Postal Service for the year 2021.
Back in 2020, USPS imposed a similar temporary price increase for the holiday season. The organization did so to properly anticipate heightened package and shipping demand during the peak season, which usually results in extra handling costs. USPS is expecting the same trend of heightened demand for this year’s holiday season, as well—thus, the Postal Service plans to raise prices to adequately offset the extra handling costs it will no doubt incur.