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
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If you’ve been shipping for a little while, you’ve probably noticed that the shipping carrier of your choice raises its prices on a yearly basis, and sometimes even more frequently during peak seasons such as the holidays. When shipping carriers raise their prices every year, small businesses end up paying the cost, and as you probably know, every cent you pay for shipping eats into your margins…and therefore, every cent counts. While you can’t avoid rising shipping costs, you can help your business by purchasing labels through shipping software providers.

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Do All Shipping Carriers Actually Raise Their Prices On a Yearly Basis?

In a short answer, yes. Unfortunately, this is a certainty—like death and taxes. USPS isn’t the only carrier to raise its prices on a yearly basis, though. 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 Shipping Carriers Raising Their Prices Every Year?

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. The costs of operating become greater over time, and as a result, carriers have no choice but to raise their prices accordingly. Chalk it up to plain old-fashioned economics.

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 its 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 buy postage online. 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.

Looking for the right shipping software for you?

To get the deepest discounts on shipping labels for your packages, check out our guide:

Choose the Best Shipping Software

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