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USPS to Maintain Current Prices for First Class Mail

While many online sellers expect a postage rate increase each year, the cost of mailing a letter will remain the same come January. The USPS will not raise prices in January for Market Dominant products, good news for sellers of ephemera and lightweight items sent via First Class Mail.

The Postal Service Governors decided not to seek a change for mailing and shipping products and services in January in part because of what it called the uncertainty regarding the exigent price increase. Late last year, the Postal Regulatory Commission approved a 4.3 percent exigent rate increase due to lost revenue caused by the 2008 – 2009 recession – though only on a temporary basis. The USPS is only allowed to generate $2.8 billion from the surcharge.

The exigent rate increase did not impact Competitive products such as Priority Mail, popular with many small ecommerce sellers. In fact, the USPS adjusted Priority Mail prices in September, actually decreasing commercial Priority Mail rates.

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The USPS Board of Governors said it announced the decision this week because mailers have been uncertain whether a price change would take effect in January 2015 – the Postal Service has announced price change proposals in September and October for the past three years.

“The Postal Service will continue to evaluate pricing strategies and will communicate about any potential price change filings in early 2015, including advance notice to customers of any price changes,” according to the USPS.

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Ina Steiner

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. Send news tips to ina@ecommercebytes.com.


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