USPS Will Not Increase Postage Rates in January 2015
Great news mailers and shippers! The U.S. Postal Service (USPS) recently announced there will be no changes to mailing and shipping rates in January 2015. This means the cost to send a one ounce First Class Letter will remain $0.49 ($0.48 if you print postage online and receive the metered mail rate) in January 2015. And there will be no increase in prices for shipping services which includes Priority Mail, Priority Mail Express, First Class Package Service, Media Mail and Parcel Select.

For e-commerce shippers, no annual rate increase coupled with the recent shipping rate reductions that occurred in September 2014 make Priority Mail the perfect shipping product to lower costs in 2015.

UPS and FedEx to Increase Rates by Average of 4.9% in 2015
In October, UPS announced they were increasing rates by 4.9% on average (effective December 29, 2014). And FedEx announced they were increase rates by an average of 4.9% on standard list rates effective January 5, 2015. Both UPS Ground and FedEx Ground/Home Delivery will also be incorporating DIM pricing in 2015, which is expected to increase rates.

USPS Rates Could Be Adjusted Later in 2015
While USPS postage rates are not increasing in January 2015, there could still be an increase – or even a decrease – sometime later in 2015. In January 2014, the USPS applied for an “Exigent Price Increase” due to significant USPS losses that occurred during The Great Recession. This Exigent Price Increase allowed the USPS to increase rates higher than rate of inflation in order to recover the approximate $2.8 billion lost. Once the exigent/higher rates recovers the $2.8 billion total, expected to be in early fall of 2015, the USPS could then make additional rate adjustments.

Stay up to date on the USPS postage rate increase here.

The Postal Regulatory Commission (PRC), the governing body that approves U.S. Postal Service rate increases, has approved a special “exigent” rate increase for USPS market dominant products. Market dominant products include First Class Mail letters, First Class Mail flats/large envelopes, postcards, Standard Mail (bulk mail), periodicals, Media Mail and Library Mail. The new rates will go into effect on Sunday, January 26, 2014.

Important!  The “exigent” rate increase DOES NOT impact Competitive shipping products such as First Class Package Service, Priority Mail, Priority Mail Express and Parcel Select.  Get more info on the 2014 USPS Postage Rate Increase for shipping services.

By statute, the USPS can only raise mailing prices in accordance with the rate of inflation as measured by the Consumer Price Index (CPI) – currently 1.7%.  This “exigent” increase approved by the PRC allows the USPS to raise the rates on market dominant products over the 1.7% CPI.  The price of a First Class Mail 1 oz. letter will increase by 3 cents (6.0%) – to $0.49 from $0.46.

New for 2014! One Cent Discount for Metered Mail!
USPS has approved a one cent discount for First Class Mail 1 oz. letters if the postage was printed using metered mail (Stamps.com online postage or postage meters). The price of a First Class Mail 1 oz. letter will be $0.48 – one cent lower than the $0.49 rate if purchasing postage at the Post Office or other retail outlets.

New 2014 USPS Rates to be Automatically Updated in Stamps.com on January 26, 2014
Stamps.com will automatically apply these new rates starting on Sunday, January 26, 2014.  If you are a Stamps.com customer, you will not need to take any action – the program (software or web version) will automatically be updated with the new USPS rates.