Why Do Shipping Carriers Raise Their Prices Every Year?

Learn why each shipping carrier raises their postage prices year after year (and why it makes sense)
shipping carriers raise their prices each year

On January 27th, USPS officially implemented their postage rate increase. Since they did, shippers have been scrambling to find savings any way they can. Unfortunately, the rate increase has left a lot of small business owners disgruntled, so we wanted to address the reason behind why all shipping carriers raise their prices every year…and why these rate increases make sense.

Seriously? All Shipping Carriers Raise Their Prices Each Year?

Yes. Unfortunately, this is a certainty—like death and taxes. USPS isn’t the only carrier to raise their prices on a yearly basis. FedEx, UPS, and a slew of other smaller niche carriers all raise their shipping rates, forcing businesses to adapt accordingly.

What’s the Reason for the Yearly Rate Increases?

Carriers raise their prices each year for a number of reasons. Sometimes, they do it to account for rising fuel costs (all shipping carriers need fuel for their delivery trucks and planes, after all). However, most of the reasoning behind the yearly rate increases is to combat inflation.

Shipping isn’t the only industry that raises its prices to battle inflation. In fact, if you pay attention to other businesses in your life such as restaurants, grocery stores, and retail outlets, you’ll notice that pretty much every industry raises their prices each year. It’s just a natural part of the economy.

Combat Rate Increases by Using Shipping Software to Buy Postage

While these rate increases are unavoidable, you can be diligent by using shipping software to get the deepest discounts on postage. Most online shipping software solutions let you access special levels of discounts such as USPS Commercial Pricing, which represents the deepest discounts that USPS typically only gives to commercial shipping companies. Here’s the bottom line: when you use shipping software, you’ll always save the most money on shipping packages…even after the shipping carriers raise their prices each year.

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