It’s that time of year again. USPS has just announced their proposed price increases, which the organization has filed with the Postal Regulatory Commission (PRC). If the PRC approves the prices, they will take effect in January of 2021. We’ve laid out all of the proposed increases for every USPS shipping service below, for both Retail and Commercial Pricing rates.
The Planned Price Increase for All USPS Services (Retail Rates)
The price increases, proposed by the USPS Board of Governors, would generally raise prices for all Priority Mail products about 3.5% across the board. Priority Mail Express service is set to increase by 1.2%.
Flat Rate Service Price Increases
- Regular Flat-Rate Envelope: $7.95 (up from $7.75)
- Legal Flat-Rate Envelope: $8.25 (up from $8.05)
- Padded Flat-Rate Envelope: $8.55 (up from $8.40)
- Small Flat-Rate Box: $8.45 (up from $8.30)
- Medium Flat-Rate Box: $15.50 (up from $15.05)
- Large Flat-Rate Box: $21.90 (up from $21.10)
- APO/FPO Large Flat-Rate Box: $20.40 (up from $19.60)
Commercial Pricing Proposed Rate Increases (What You’d Pay with Shipping Software)
Commercial Pricing is a bit trickier this year. Priority Mail is set to rise by approximately 4.2%, Priority Mail Express by 2.5%, 6.5% for First Class Package, and 1.3% for Parcel Select Ground.
While most of the increases in this pricing tier are still incremental like Retail Rates are, the price increase becomes most drastic the heavier a package gets, and the further away it needs to travel. For example, weight-based Priority Mail currently costs $23.67 to a ship a 3-pound package to Zone 9. However, under the proposed price increase, this same package will cost $29.59. That change in price reflects a 25% increase, not a mere 3.5% lift.
The most notable price increase applies to the dimension-based service USPS Priority Mail Cubic, with larger packages being impacted the most. Let’s look at another example—say you’ve got a package in the 0.5 pricing tier, traveling to Zone 9. That package currently costs $29.88 to send with Priority Mail Cubic. Under the new proposed prices, however, this same package will cost $38.28. That change in price comes out to a 28% increase.
Still, the smaller your box is, the lower cubic pricing tier it will fall into…and the cheaper it will be to ship with Priority Mail Cubic. So, make sure you’re optimizing your package dimensions to be as small as possible!
Learn more about USPS cubic pricing tiers.
Flat Rate Service Price Increases
- Regular Flat-Rate Envelope: $7.40 (up from $7.15)
- Legal Flat-Rate Envelope: $7.70 (up from $7.45)
- Padded Flat-Rate Envelope: $8.00 (up from $7.75)
- Small Flat-Rate Box: $7.90 (up from $7.65)
- Medium Flat-Rate Box: $13.75 (up from $13.20)
- Large Flat-Rate Box: $19.30 (up from $18.30)
- APO/FPO Large Flat-Rate Box: $17.80 (up from $17.20)
Saving Money on Shipping is More Important than Ever
Higher prices mean lower margins on products, and no online seller is ever happy about an increase in costs. That said, all the major shipping carriers raise prices every year, not just USPS. Prices increase due to market conditions and rising transportation expenses, such as the cost of fuel, and it’s up to shippers to properly prepare for it. Simply put, the best way to offset these price increases is to make sure you’re saving the most money on all your packages by using online shipping software.
Similar to going shopping during a sale, shipping software allows you to buy shipping labels at the deepest level of discounts that USPS offers. USPS typically reserves these discounts for huge shippers sending out 50,000 or more packages per year…but with shipping software, you can access these discounts for free! With so many different shipping software options at your disposal, you should never pay Retail Rates, and never have to go to the Post Office again.
Want to the save the most money on shipping?
To get the cheapest rates even after the annual price increase, check out our guide: