USPS to Implement Second Postage Rate Increase in 2021

June 4th, 2021 Comments off
August 2021 USPS Price Increase

The U.S. Postal Service has proposed a second 2021 postage rate increase for mailing services (letters, postcards) to be implemented on Sunday, August 29, 2021 subject to approval by the Postal Regulatory Commission. This would be the second USPS postage rate increase of 2021, with the first rate increase going into effect on January 24, 2021.

It’s important to note the August 2021 rate increase only impacts “Market Dominant” products, which are mail services such as First Class Mail letters, postcards and mailing services. The USPS DID NOT include package services such as First Class Package Service or Priority Mail, which are known as “Competitive” products. (This could change as additional USPS announcements are expected.)

Listed below are the highlights of the proposed August 2021 USPS rate increase:

  • The rate for a First Class Mail Letter (1 oz.) for postage purchased at the Post Office will increase 3 cents to $0.58 from $0.55. Each additional ounce for First Class Mail will cost $0.20, no change from the January through July 2021 period.
  • If you print postage online (via Stamps.com), the Metered Mail rate for a First Class Mail Letter (1 oz.) will increase by 2 cents to $0.53 from $0.51.
  • With a 5 cents discount, printing postage online using the Metered Mail rate provides a 9% discount off the Post Office price.

First Class Mail Letter Rates - as of August 29, 2021

INCREASE PER LETTER - Jan 2021 Rates vs. Aug 2021 Rates
Mailpiece WeightJan 2021Aug 2021Increase
Letters - 1 oz.$0.55$0.58$0.03
Letters - Additional Ounces$0.20$0.20No Change
Metered Mail Letters (Stamps.com Rate) - 1 oz.$0.51$0.53$0.02
Metered Mail Letters (Stamps.com Rate) - Additional Ounces$0.20$0.20No Change
Flat/Large Envelope - 1 oz.$1.00$1.16$0.16
Flat/Large Envelope - Additional Ounces$0.20$0.20No Change
Postcards$0.36$0.40$0.04
International Letters - 1 oz. (County Groups 1-9)$1.20$1.30$0.10
International Postcard (County Groups 1-9)$1.20$1.30$0.10
International Flats - 1 oz. (Country Groups 1-9)$2.40$2.60$0.20

Domestic mail services are increase in August 2021. Certified Mail is increasing to $3.75 from $3.60, a $0.15 increase. And Registered Mail is increasing to $13.75 from $12.90, an $0.85 increase.

Domestic Mail Extra Services - as of August 29, 2021

INCREASE PER SERVICE - Jan 2021 Rates vs. Aug 2021 Rates
Mailpiece WeightJan-21Aug-21Increase
Certified Mail$3.60$3.75$0.15
Certified Mail Restricted Delivery$9.15$9.75$0.60
Registered Mail$12.90 and up$13.75 and up$0.85
Signature Confirmation - Mail$3.20$3.45$0.25
Signature Confirmation - Electronic$2.70$2.90$0.20
Return Receipt - Mail$2.85$3.05$0.20
Return Receipt - Electronic$1.75$1.85$0.10
Adult Signature Required$6.90$6.90No Change
Adult Signature Required, Restricted Delivery$7.15$7.15No Change
Package Intercept$15.25$15.25No Change
Pickup on Demand$25.00$25.00No Change
USPS Tracking Plus - Scan RetentionStarts at $2.10Starts at $2.10No Change
USPS Tracking Plus - Scan + Signature RetentionStarts at $4.59Starts at $4.59No Change

Media Mail rates will increase by an average of 10.865% in August 2021. A 1 lb. package traveling to Zone 8 will be $3.19 in August 2021 from $2.89 in January 2021, an increase of 30 cents.

USPS Media Mail Rates - as of August 29, 2021

INCREASE PER PACKAGE - Jan 2021 Rates vs. Aug 2021 Rates
WeightJan-21Aug-21Increase
1 lb.$2.89$3.19$0.30
2 lbs.$3.45$3.82$0.37
3 lbs.$4.01$4.45$0.44
4 lbs.$4.57$5.08$0.51
5 lbs.$5.13$5.71$0.58
6 lbs.$5.69$6.34$0.65
7 lbs.$6.25$6.97$0.72
8 lbs.$6.81$7.60$0.79
9 lbs.$7.37$8.23$0.86
10 lbs.$7.93$8.86$0.93

Stamps.com Will Automatically Update to the New USPS Rates on August 29, 2021

Once the rates are approved by the PRC, Stamps.com will automatically update all USPS rates inside the software and web-based version (Stamps.com Online) on Sunday, August 29, 2021.

If you are a Stamps.com customer, no additional actions are needed and you will AUTOMATICALLY see the 2021 USPS rates in the platform.

USPS Announces Changes to Certain Rates and Services

August 24th, 2016 Comments off

279384_Postage-Rate-change_blogIf you haven’t already done so, mark your calendar for August 28, 2016, which is when the United States Postal Service® is implementing a handful of changes.  If you have questions, we have answers.

First-Class Mail Parcel Retail Rates Are Rising

What’s changing?

The Retail (Post Office) rate for First-Class Mail® Parcel packages weighing 1-3 ounces is increasing from $2.45 to $2.62.

Note:  Commercial Base rates are not changing and will continue to start at $2.60 for First-Class Mail® Parcel packages.

What’s the new rate going to be for Stamps.com customers?

With this price change, Stamps.com customers will pay the Commercial Base rate of $2.60 for packages weighing 1-3 ounces.  This online price is 2 cents cheaper than the retail rate of $2.62.

USPS changed First-Class Package Service rates back in January, creating a unique situation at the time where the Retail rate for First-Class Package Service ($2.45) was actually lower than the Commercial Base (discounted online) pricing ($2.60) for packages weighing 1-3 ounces.  Stamps.com automatically gave customers the lower Retail rate ($2.45) when this happened.

What do I need to do to get the updated rates?

There’s no action needed for Stamps.com customers.  We will automatically update all USPS rates inside the software and the Stamps.com Online web-based version.  You will see the new rates automatically.

Other changes starting August 28:

Priority Mail Express International service to Cuba will be available for Flat Rate Envelopes up to 4 pounds and parcels up to 22 pounds. Currently, Cuba receives First-Class Mail International®, First-Class Package International Service® and Priority Mail International® items from the Postal Service.  Learn how to use Stamps.com to ship to Cuba.

Priority Mail International Flat Rate Envelopes and Small Flat Rate Priced Boxes will move to the air parcel stream with access to tracking and insurance. Priority Mail International Flat Rate Envelopes and Small Flat Rate Boxes, which will still be limited to a maximum weight of 4 pounds, will now also be required to carry a PS Form 2976-A Customs Form.

Free Guide: Understanding the 2015 USPS Postage Rate Increase

May 27th, 2015 Comments off

The USPS is implementing the 2015 Postage Rate Increase on Sunday, May 31st.  Check out Stamps.com’s 2015 USPS Postage Rate Increase Guide to understand what the changes are and how your mailing and shipping processes may be impacted.

The FREE downloadable PDF Guide includes details on the USPS rate changes for each mail class – both domestic and international – and special USPS services.  Additionally, the 2015 USPS Postage Rate Increase Guide provides tips and recommendations on when each mail class should be used along with a comprehensive Q&A to help with commonly asked questions around the 2015 USPS Postage Rate Increase.

Blog_2015 USPS Postage Rate Increase Guide

The guide is free and can be downloaded at: http://www.stamps.com/whitepapers/2015-usps-postage-rate-increase-guide.pdf.

Free Guide: Understanding the 2014 USPS Postage Rate Increase

January 23rd, 2014 Comments off

The USPS is introducing new rates and services this Sunday, January 26, 2014.  To ensure a smooth transition for you and your business, Stamps.com has created the 2014 USPS Postage Rate Increase Guide.

A free, downloadable PDF designed to help you understand all the USPS changes, the Guide contains detailed rate information for each USPS mail class – both domestic and international – and includes tips and recommendations to help small businesses lower their postage costs.  The guide also contains a comprehensive Q&A section to help with commonly asked questions around the 2014 USPS Postage Rate Increase.

blog_2014-rate-increase-guide_large

The guide is free and can be downloaded at: http://www.stamps.com/whitepapers/2014-usps-postage-rate-increase-guide.pdf

 

2014 FedEx Ground & UPS Ground Rates Increase by 7% for Packages Up to 10 lbs

January 15th, 2014 Comments off

With a new year comes new rates and products from the top shipping carriers.

UPS Ground® announced an average rate increase (starting December 30, 2013) of 4.9%. FedEx® Ground/Home Delivery announced an average rate increase (starting January 6, 2014) of 3.9%.

blog_rate-increase_fedex-ups-usps_2014a

Note: Since UPS Ground and FedEx Ground/Home Delivery rates (up to 50 lbs.) are identical in 2014, the annual rate increase percentage is the same for both carriers.

But the devil is in the details as UPS and FexEx publish their annual rate increase using an average rate between 1 lb. and 150 lbs.  While the rate increase in higher weights (example: 100 – 150 lbs.) are below the average, the annual rate increase in the more frequently shipped weights of 1 to 10 lbs. are often much higher than the average — for 2014 they will be 7.52% in the 1-5 lbs. range and 7.06% in the 6-10 lbs. range.

In comparison, the U.S. Postal Service has reduced their overall average rate for Priority Mail by 0.87% in the 1 to 5 lbs. range and by 2.22% in the 6-10 lbs. range.  These new lower Priority Mail rates will start Sunday, January 26, 2014.

As with every annual rate increase, it’s always a good idea to review your shipping program and look for opportunities to lower costs.  With improved package tracking and no fuel surcharges or fees for residential delivery, the USPS is a great option to include in your shipping program for 2014.

Rate Sources:
FedEx 2014 Service Guide – http://www.fedex.com/us/service-guide/our-services/pdf/
UPS 2014 Daily List Rates – http://rates.ups.com/
USPS 2014 Shipping Services Prices – http://pe.usps.com/Shipping_Svcs_Jan_2014.xls

Calculation Method:
For all three shipping carriers, we calculated the difference between the 2013 and 2014 overall shipping rates for the different weight groups (up to 50 lbs.) across shipping zones (1-8).  To determine the shipping rate increase percentages for the different weight groups, we divided each difference by the corresponding 2013 overall shipping rate.  For this comparison, UPS Ground daily rates, FedEx Home Delivery Standard List rates and USPS Priority Mail Commercial Base rates were used.  The shipping rate percentage increase calculation does not incorporate the shipping rates for USPS Zone 9, which will be introduced on January 26, 2014 for U.S. territories.

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