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USPS to Raise Rates Twice a Year

USPS
USPS to Raise Rates Twice a Year

The US Postal Service announced today it will raise rates for Market Dominant services (including the cost of a stamp, First Class Mail, and Media Mail) twice a year – each January and July.

In what appears to be an effort to take the sting out of the bad news, the USPS said it would skip the increase this coming January.

The USPS did not mention a schedule for raising the rates of Competitive services (including Priority Mail).

The USPS filed a detailed notice with the PRC, which you can read on the PRC.gov website.

The USPS issued the following announcement today:

Postal Service Announces New Market Dominant Price Adjustment Schedule

To help customers better prepare for a new Market Dominant price adjustment schedule, the Postal Service will not raise prices on Market Dominant products, including Forever stamps, in January 2022. Instead, the next Market Dominant price adjustment is scheduled to happen in July 2022.

Beginning January 2023, Market Dominant price adjustments will occur twice a year, (e.g. January 2023, July 2023, January 2024, July 2024, etc.). Market Dominant products include First-Class Mail (FCM), USPS Marketing Mail, Periodicals, Package Services* and Special Services.

July 2022 rate authority will include ten months of CPI plus retirement, density, and non-compensatory class authorities as determined by the Postal Regulatory Commission (PRC). The January rate authority will include six months of CPI, plus any unused rate authority. Subsequent July rate authority will include six months of CPI plus the retirement, density, and non-compensatory class authorities and any remaining unused rate authority.

The Postal Service has submitted an official statement reflecting the above schedule with the PRC. The statement gives estimated filing and implementation dates for future adjustments of each mail class over the next three years.

The Postal Service has some of the lowest letter mail postage rates in the industrialized world and also continues to offer a great value in shipping.

*Package services include Media Mail, Library Mail, and Bound Printed Matter.

Ina Steiner on EmailIna Steiner on LinkedinIna Steiner on Twitter
Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

13 thoughts on “USPS to Raise Rates Twice a Year”

  1. And the service will get progressively worse each time the rates are raised. I wish Amazon would start a mail delivery service to rival USPS.

    1. Good news Mimi. I was just watching a news segment where AMZ does intend to start delivering mail like UPS and Fedex! It will take a while, but it’s coming. However, AMZ won’t be delivering first class mail.

    2. So you really think AMZ won’t deliver mail for a profit? AMZ will raise rates because they don’t have tax dollar to subsidize their business.

    1. I do. I’m a jeweler with a good repeat customer base and my new pieces sell on Etsy in a matter of minutes, upon posting. I raise my prices due to ‘demand” and they continue to sell. And let’s not forget about inflation. If sellers cannot raise prices annually, then the seller is really falling behind due to annual inflation that hits all of us. In other words, $10 bucks today will be worth less tomorrow.

  2. There’s always bulk purchasing to beat the price increase. People forget that 1st class mail is “forever” mail.

  3. Pricing small sellers right out of business, I’m only selling half the inventory I sold 4 years ago, rate increases twice a year now, just gonna wipe out the other half.

  4. USPS have been trying to catch some of the online sales money for years. They are SUPPOSED to be non profit, but a Trump appointee couldn’t let THAT happen.

    1. For many years, USPS has been in deficit due to having to pay out expensive retirement plans for postal employees. This information was around for many years and well before Trump appointed DeJoy.

      1. Try to get a job with the post office. They’re advertising right now, like every other business crying about a labor shortage. Except…it’s all part-time/seasonal work paying about $2 more than Target and McDonalds are offering. Typical globalist anti-labor big business management at work.

  5. I’m not surprised. Because how long can the Postal Service deliver cheap “first class” mail given the price and effort it takes to make a delivery. Think about it…someone who spends only $3.00 to deliver a greeting card is paying for the price of cross-country flights and efforts by multiple postal workers who make livable wages including the price of healthcare. And this is why paying bills online is now so important. Inflation will either eliminate First Class, all together, or prices will have to double.

  6. I ship a lot of items via first class mail. Mostly postcards, small art prints, and sewing patterns. Looks like customers will have to shell out more money. I cannot eat every increase in fees. Unfortunately, USPS has you over a barrel for small items that ship first class mail. To use any other carrier is cost prohibitive unless you send everything overnight and charge accordingly.

  7. well now they are being obvious about what i have suspected was happening. their endgame is to price media mail out of existence, to make it so close to priority mail that the savings is minimal and people just pay for priority.

    makes sense they have destroyed first class international as a shipping method, now it’s time to destroy the value based domestic ones

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