USPS Raises Parcel and Stamp Prices by 7%

The US Postal Service has increased parcel rates and stamp prices by 7%. Domestic shipping service prices increased by 6.3%, while Parcel Select and USPS Ground Advantage increased by 7.1% and 7.6%, respectively. First-class mail stamp prices increased to 78 cents from 73 cents, and letter and postcard rates increased by 7.4%. The higher shipping rates may impact small-and-medium companies that sell goods online and some could go out of business. Bulk mailers have also criticized the rate increases, with some urging the incoming Postmaster General to freeze the mailing rates until after he takes office.

The United States Postal Service (USPS) has proposed a substantial increase in mailing and shipping rates, with the changes set to take effect on July 14, 2024. The proposed adjustments, if approved, will raise mailing services product prices by approximately 7.8 percent. The primary impact will be seen in First-Class Mail, Certified Mail, and Marketing Mail services.

First-Class Mail, a staple for many businesses and individuals, will see a 5-cent increase in the price of a First-Class Mail Forever stamp from 68¢ to 73¢. Additionally, the cost of First-Class Flats (Large Envelopes) will increase by 11¢. Certified Mail rates will also rise, with the manual Return Receipt (green card) increasing by $0.45, and the electronic Return Receipt saving $1.48 per piece.

Marketing Mail, often used for bulk mailing campaigns, will see a modest increase compared to First-Class Mail rates. The increase in rates for Marketing Mail is much less than that of First-Class Mail, but the specific details of these increases have not been fully disclosed.

The USPS has also not yet announced price changes for Priority Mail, Ground Advantage, and Priority Mail Express services, which are expected to see significant price increases in January 2024. These services are critical for businesses that rely on timely and cost-effective shipping solutions.

The higher shipping rates may have a significant impact on small and medium-sized businesses that sell goods online. The increased costs could potentially force some companies to reevaluate their business models or even go out of business. Bulk mailers have also criticized the rate increases, urging the incoming Postmaster General to freeze the mailing rates until after he takes office.

To mitigate the impact of these rate increases, businesses are advised to explore cost-saving strategies, such as optimizing packaging, negotiating rates with carriers, and utilizing software solutions that provide real-time rate comparisons and discounts.

References:
[1] Pitney Bowes. (n.d.). USPS Rate Change Overview. Retrieved from https://www.pitneybowes.com/us/postal-information/usps-rate-change-overview.html