USPS Rate Increases to Take Effect Sunday January 21
As many SMEs use the postal service for shipping, this is just a reminder that USPS will increase postage rates on Sunday, January 21.
- Do you need a business bank account for your online business? Have a look at our review of the five best bank accounts for sellers, some of which are free with no minimum balance or deposits.
- AI can change your entire social media game today. Learn how you can save time writing engaging content faster. [sponsored]
- How to lower your taxable income and pay less in taxes. [sponsored]
- ‘My Community Made’ is a new marketplace to compete with Etsy and Amazon Handmade.
- EXCLUSIVE: Interview with Chris Prill, VP eBay Motors, discussing the new Guaranteed Fit program.
The changes will raise Mailing Services product prices approximately 1.9 percent, while most Shipping Services product prices will increase an average of 3.9 percent.
First-Class Mail single-piece forever stamps will increase 1 cent to 50 cents. But more important are some of the Priority Mail increases as they will impact shipping costs.
- Priority Mail Small flat-rate box: $7.15 (current), $7.20 (new)
- Priority Mail Medium flat-rate box: $13.60 (current), $13.65 (new)
- Priority Mail Large flat-rate box: $18.85 (current), $18.90 (new)
- Priority Mail Army/Air Post Office and Fleet Post Office large flat-rate box: $17.35 (current), $17.40 (new)
- Priority Mail Regular flat-rate envelope: $6.65 (current), $6.70 (new)
- Priority Mail Legal flat-rate envelope: $6.95 (current), $7 (new)
- Priority Mail Padded flat-rate envelope: $7.20 (current), $7.25 (new)
Additional rate increases for First-Class mail and Postcards are:
- Letters (metered): 46 cents (current), 47 cents (new)
- Domestic postcard stamps: 34 cents (current), 35 cents (new)
All other rates stay the same for now.
Also, shipping pricing may vary depending on negotiated discounts. Labels printed on eBay, PayPal, Stamps.com, Endicia, ShippingEasy, Shipstation, Sixbit Software, Pitney Bowes, and others may be less but will increase proportionately.
More Rate Increases to Come?
However, as we already posted last month, there is a possibility another round of rate increases may follow this year. USPS is under pressure to balance their books, and while the independent federal agency has made a lot of progress, they are still operating in the red.
In comparison to UPS and FedEx, the value of many low weight Priority Mail shipments, which offer 2 to 3 day delivery in the U.S., is excellent. Especially the flat-rate boxes are a favorite as they simplify shipping for many sellers.
These rate increases are relatively minor, but some sellers may want to compare UPS, FedEx, and USPS rates to make sure they are using the best shipping method for their orders.
ShippingEasy released a comprehensive guide to help eCommerce operators compare shipping rates. You can find more information here.
Connect with us: Head over to our Facebook Group for Small Business Sellers and interact with other small business owners.
Follow us on Facebook, Twitter, or LinkedIn to stay up to date with relevant news and business insights for your online business.
Subscribe to Our Newsletter
Business Insights for Your Online Business Presented with a Dash of Humor
We do not share your information and you can unsubscribe anytime.
Richard is co-founder of eSeller365. He has over 17 years of experience on eBay which includes tens of thousands of sales to buyers in over 100 countries and even has experience with eBay’s VeRO program enforcing intellectual property rights for a former employer. And for about two years Richard sold products on Amazon using Amazon FBA in the US.
To “relax” from the daily business grind, for a few weekends a year, he also works for IMSA as a professional race official.