“Oh no!” the E-commerce business owner cried out to her partner. “USPS is raising their rates…AGAIN!” It’s true: USPS has been known to raise postage prices every year, and 2019 is no different. However, it’s really no reason to freak out. Here’s a breakdown of the current rates for all USPS services, and the new rates taking effect on January 27th, 2019.
The 2019 Postage Rates
Figures on the left underneath “Domestic Mailing” represent the 2018 mailing rates, while figures on the right represent the new 2019 rates. Since domestic and international shipping prices vary, we’ve simply listed the percentage increase in those sections.
- First Class Mail (under 1 ounce): $0.50/$0.55
- Priority Mail: ~5.9%
- Priority Mail Express: ~3.9%
- First Class Package: ~11.9%
- This service is also moving to Zone-based pricing
- Media Mail: ~2.9%
- Parcel Select Ground: Interestingly enough, this service will see a rate decrease of ~1.3%
- Priority Mail Express: ~3.9%
- Priority Mail International: ~6.2%
- First Class Package International: ~3.9%
Why Does USPS Raise Postage Prices Every Year?
Good question! We can answer that with one word: inflation. It’s a basic economic principle. Over time, the purchasing value of the dollar (and money in general) typically falls. As a result, you’ll notice that prices generally go up for all goods and services as time goes on. Mailing and shipping services are no exception. In fact, USPS isn’t the only carrier to raise postage prices each year. UPS, FedEx, and scores of other smaller carriers also follow suit.
Commercial Pricing: What’s in a Name?
Another big change USPS is introducing is eliminating Commercial Base Pricing and changing the name of Commercial Plus Pricing to simply “Commercial Pricing.” Starting on January 27th, there will be only be two USPS pricing tiers: Retail and Commercial. That’s it. Head’s up, though! We’ve got a sneaky suspicion that a lot of shipping solutions will keep throwing around terms like “Commercial Base” and “Commercial Plus” in an effort to distract customers from the fact that they’re marking up postage. That’s just something to be aware of going forward in the coming year. Here’s a little piece of advice from us: always make sure to buy postage at what will now be referred to as the “Commercial Pricing” rate. If you see old terms like “Commercial Base” after January 27th, run for the hills…or in this case, to another shipping solution.
How Will This Affect Shipping Software Solutions?
For all you E-commerce business owners biting your nails, don’t freak out just yet. You’ll still get the same percentage discounts when you buy postage online with shipping software. However, the total price you pay for discounted postage will ultimately be higher because of the rate hikes. Remember, this happens every year, so it should be no surprise when USPS decides to raise postage prices. The best thing we suggest is for you to be vigilant and be aware of the new rate changes. Shipping costs contribute your bottom line…so it wouldn’t hurt for you to analyze your business and adjust accordingly, if you need to.