The United States Postal Service’s 2023 rate and service changes have been approved by the Postal Regulatory Commission (PRC), and the updates will take effect on January 22, 2023. We’re going to address all of the upcoming changes, so you’ll have time to adjust accordingly and prevent negative shipping experiences for your customers.

Important USPS 2023 rate and service changes

More detailed highlights of the upcoming changes are: 

• Priority Mail® commercial rates will see an increase of 3.6%, keeping them below the rate of inflation
• Priority Mail Express® will see an increase of 6.7%
• First-Class Package Service will see an increase of 7.8%
• Priority Mail service prices will see an increase of around 5.5%
• USPS First Class Package International rates will see an increase of 6.2%
• USPS Priority Mail International® will see an increase of 5.9%
• USPS Priority Mail Express International® will see an increase of 5.9%
• Zone 1, Zone 2, and Local have traditionally seen the same shipping rates. However, Local will now be combined with Zone 1, and Zones 1 and 2 will have individual rates 
• The pricing for Parcel Select Ground won’t see any rate increases
• Priority Mail Regional Rate Boxes® will no longer be available
• All Canadian Zones will be combined into one pricing zone for USPS Priority Mail International
• Commercial Base and Commercial Plus will be merged into one entity

Flat Rate Priority Mail changes

Flat Rate envelopes and boxes will be included in the 3.6% increase for Priority Mail services. USPS will continue offering Priority Mail Flat Rate envelopes and boxes through their website. Also, you’ll be able to order some of these supplies directly from your Stamps.com account. A comparison of the 2022 and 2023 rates can be found below. 

Local Zone changes

Previously, Local, Zone 1, and Zone 2 all had the same shipping rates. Moving forward, there will no longer be a Local Zone, and Zones 1 and 2 will have two different shipping rates. If your business ships to customers who live close by or in the same state, you’ll see the impact of this change. The changes will be more noticeable when you’re shipping to customers in Zone 2, which is a 51-150 mile radius. 

Regional Rate Boxes are being retired 

Regional Rate A & B Boxes, used for 15-20 pound shipments traveling a short distance, will be discontinued. If your business uses Regional Rate Boxes after January 23, 2023, USPS will accept your shipment, but the cost won’t be calculated in the same way Regional Rate Boxes were. For this reason, USPS recommends using these materials by January 22. Additionally, check the automation rules currently running on your Stamps.com Online account to ensure this service isn’t applied to any of your shipments. 

Priority Mail® Cubic will still be an option for shippers, as it has seen a rise in popularity, and sometimes even offers a lower rate than what was seen with Regional Rate Boxes. The biggest difference with Priority Mail Cubic is that supplies aren’t free. For merchants who want to explore alternatives beyond USPS Cubic, Parcel Select Ground offers shippers a great value, so it’s worth looking into as a substitute for smaller and heavier domestic shipments. Parcel Select Ground offers: 

• An estimated delivery window of 2-5 days 
• A service for shipments up to 20 pounds 
• Uses the Commerical rates with your Stamps.com account 

How will the 2023 changes impact international shipping?

The biggest change to international shipments will involve your Canadian packages. Similar to the US Zones, Canada was previously broken down into 8 different pricing groups. Now, all of Canada will fall under Pricing Group 1. Also, USPS will change Turkey to Turkiye, so don’t be alarmed if the spelling of the country is updated on your labels to reflect this update. 

How can Stamps.com help?

In our recent study, 30.3% of customers stated that delivery costs were the most important factor in deciding whether or not they’d purchase from a business; the second most important factor was the speed of delivery. Rising USPS costs could mean raising shipping costs for your customers. However, you can still enjoy the discounted shipping rates included with your Stamps.com account to help offset these costs. 

Start your free 30-day trial today on Stamps.com.

As of Sunday, July 28, the USPS has made some significant changes to Priority Mail.  These changes DO NOT include any postage rate increases — they are operational changes only.

We’ve listed some FAQs below:

#1 Has the delivery service changed for Priority Mail?  I now see “Priority Mail 1-Day,” “Priority Mail 2-Day” or “Priority Mail 3-Day” listed on the label.

Delivery service for Priority Mail is exactly the same as before — 1 to 3 day delivery. Keep in mind that Priority Mail is not a guaranteed date-specific delivery service. Since most Priority Mail packages are delivered within 2 days, the USPS has added estimated delivery dates on the shipping label to help communication between the shipper and the package recipient. Delivery date estimates are based on where the package is being shipped from and where it is being delivered to.

#2  Can I choose 1, 2, or 3-day delivery for Priority Mail?
No, you will not be able to choose 1, 2 or 3-day delivery.  The scheduled delivery date will be automatically determined by the zip code your package is being shipped from and the zip code where the package is being sent to.  If you need overnight delivery, you can use Priority Mail Express (formerly called Express Mail), which provides overnight delivery to most addresses in the U.S.

#3 Does Priority Mail now include insurance?
Yes, Priority Mail now includes package insurance.  You will receive $50 of coverage if you print your labels online through an approved PC Postage vendor that offers Commercial Base Pricing (such as Stamps.com).  If you are approved for Commercial Plus Pricing, you will receive $100 of free coverage.

#4 How do I know how much insurance I receive with my Priority Mail package?
By default, Stamps.com prints all shipping rates using postage discounts known as Commercial Base Pricing.  Rates for Commercial Base Pricing includes rate discounts for the following mail classes:

• Priority Mail Express: Save up to 63% off retail rates on all Priority Mail Express shipments.
• Priority Mail: Save up to 20% of retail rates on all Priority Mail shipments, depending on weight and distance.
• First Class Package Service: Save up to 18% off retail rates on all First Class Parcels.
• International Shipping: Save up to 9% on Priority Mail International shipments, up to 10% for Priority Mail Express International and up to 10% on First Class Package International Service.

Commercial Plus Pricing is a program offered by the USPS that provides highly discounted postage rates for high volume shippers that meet a required number of shipments annually.  For Priority Mail, the minimum number of shipments starts at 75,000.

#5 What is Priority Mail Express?
Express Mail was renamed Priority Mail Express on July 28, 2013. Also, Express Mail International has been renamed Priority Mail Express International. Other then the name change, the Priority Mail Express service remains exactly the same as Express Mail.

The reason for the name change was due to USPS research showing that customers often got confused between Priority Mail and Express Mail.  So the USPS changed Express Mail to Priority Mail Express, bringing everything under the Priority Mail brand umbrella.

#6 I still have old Express Mail boxes.  Can I still use them to ship my packages?
Yes, you can still use your Express Mail boxes through January 2014.  The USPS will be introducing new packaging for Priority Express Mail in the coming weeks, but the old boxes will work with Priority Mail Express.

The U.S. Postal Service is making operational changes to select shipping services starting Sunday, July 28, 2013.  The changes being made include the following:

IMPORTANT! USPS postage rates are NOT INCREASING on Sunday, July 28, 2013 – these changes are operational only!!!

Express Mail Renamed to Priority Mail Express
Express Mail is being renamed Priority Mail Express and Express Mail International is being renamed Priority Mail Express International. USPS research shows that having two shipping product names is confusing to customers, and so the USPS will simplify everything under the Priority Mail brand name.

Example of the new Priority Mail Express Flat Rate Box

Delivery service for Priority Mail Express will remain the same (overnight for domestic, 3-5 day for international).  Also, older Express Mail boxes can still be used with the newly named Priority Mail Express through January 2014.

Estimated Delivery Date Included on Priority Mail Shipping Labels
The USPS will be printing the estimated delivery date on all Priority Mail shipping labels. The date will be displayed at the top of the shipping label in bold text and will contain either “Priority Mail 1-Day,” “Priority Mail 2-Day” or “Priority Mail 3-Day.”

This is only an estimated delivery date and package shippers will not be able to choose a date-specific delivery service for Priority Mail.  Delivery dates will be determined by where you’re shipping your package from and where you’re sending it.

Example of new Priority Mail shipping label. Note the "Priority Mail 1-Day" in the top section, and the Carrier Route Code next to the delivery address.

Additionally, Priority Mail labels will now include a four-digit Carrier Route Code to help speed up package delivery.  The four-digit code will be printed just to the right of the delivery address.

Electronic Delivery Confirmation Now Available to 14 Countries
Along with Canada (added in January 2013), the USPS will be adding Electronic Delivery Confirmation to 13 additional countries for First Class Package International Service, Priority Mail International Flat Rate Envelopes and Priority Mail International Small Flat Rate Boxes.  This service will be available for no additional cost.

New countries offering Electronic Delivery Confirmation include Australia, Belgium, Brazil, Croatia, Denmark, France, Germany, Great Britain, Israel, Netherlands, New Zealand, Spain and Switzerland.

Package Insurance is Being Added to Priority Mail
Priority Mail is now going to include $50 of insurance for FREE if you print postage online (Commercial Base Pricing).  If you are approved for Commercial Plus Pricing, you will receive $100 of insurance coverage. This insurance coverage is provided automatically by the USPS and claims will be to protect shippers against loss, damage or missing contents.

Stamps.com Will Automatically Update on July 28, 2013
As a Stamps.com customer, you will not need to do anything — the Stamps.com software and website will automatically be updated with all necessary changes for this USPS update.