As expected, the USPS followed up last month’s announcement of a July rate increase for “dominant” services (including First Class Mail) with part two: rates for “competitive” services.
No price changes are being made in July for Priority Mail Express, Priority Mail, Domestic Extra Services, or the majority of International Products (some International Ancillary Services will receive a price change for July). On average, Parcel Select prices as a whole will increase 1.4%, according to today’s USPS filing with the PRC.
What is also changing: the rollout of USPS Ground Advantage, which the USPS painted today as “simpler, reliable and more affordable.”
As we reported in February, the USPS announced it would consolidate First Class Package Service, USPS Retail Ground, and Parcel Select Ground under the new branding: “USPS Ground Advantage,” featuring two-to five day service standards for packages weighing up to 70 pounds – including parcels weighing up to 15.999 ounces.
At the time, FreightWaves explained, “The product is aimed at shippers willing to sacrifice speed for price. It is also intended for users of the Postal Service’s Priority Mail service, who need two- to three-day transit times but don’t want to pay Priority Mail’s pound-based prices.”
In announcing today the availability of USPS Ground Advantage beginning July 9th, the Postal Service said published prices for USPS Ground Advantage would decrease 1.4% compared with current Parcel Select Ground and First-Class Package Service pricing. Retail prices will decrease 3.2%, and Commercial prices will decrease 0.7%.
On a page on its website, the USPS described the following Features & Benefits of the new USPS Ground Advantage offering:
- Packages delivered in 2–5 business days.
- Best-priced service for items up to 15.999 oz, based on weight (rounded up to 4 oz, 8 oz, 12 oz, and 15.999 oz) and zone (distance).
- Packages greater than 15.999 oz are charged by the pound up to 70 lbs (rounded up).
- Free Package Pickup service at your home or office.
- Pay for postage using stamps, a self-service kiosk, Click-N-Ship® service, or at a Post Office™ location.
- Tracking is included.
- Business customers can use USPS Ground Advantage Return service as a convenient option for customers who need to send items back.
- $100 insurance is included (for both outbound and return shipments), and you can purchase up to $5,000 in additional coverage against loss or damage for merchandise.
- Primary option for sending hazardous materials (HAZMAT) that are only mailable using Ground Transportation.
Last month, the USPS announced it would raise First Class Mail on July 9th by approximately 5.4% since it last raised rates in January 2023. As we noted at the time, the increase is even higher if you compare the rates to a year ago. For example, the cost of a stamp in 2 months will be 10% higher than in July 2022 – and will be nearly 14% higher than what a stamp cost in June 2022.
9 thoughts on “USPS Announces July Rate Changes, Part 2: Shipping Rates”
Ok I’m confused, is 1st class packages going up 5.4% or going down 1.4% or will there be 2 different 1st class shipping?
First Class Package Service is not part of First Class Mail anymore, USPS moved it from “dominant” to “competitive.” So yes, First Class Mail like stamps are rising.
FCPS will be renamed (part of the new USPS Ground Advantage), hopefully ending the confusion the reclassification caused.
Per “Retail prices will decrease 3.2%, and Commercial prices will decrease 0.7%.” – I’m not yet seeing this decrease in the 15.99oz and below commercial rates that I’m accustomed to using for FCPS (now Ground Advantage) in the USPS rate change spreadsheet. Will this be updated soon?
Also note that the decrease also isn’t showing in the linked PRC filing.
As I understood it, the 5.4% increase is for First Class Mail, meaning stamps
The 1.4% decrease is a comparison to the current services that will be discontinued,
“compared with current Parcel Select Ground and First-Class Package Service pricing”.
The actual decrease with the new USPS Ground Advantage will be 3.2% for retail and
0.7%. for Commercial prices.
That’s my view on it but then again USPS pricing can be very confusing at times.
ok that make some sense, swore I saw the rate increase chart for July and rates went up but can’t find it and with so many rates increases I can’t remember lol
@tsme – you have to read- between the lines, if you will- lol
rates are going down, about 2 weeks before they are going up
ugh, so much for a business plan when ebay changes rules 2-3 a year and USPS has rate increases 3 times a year.
Postal expert Gordon Glazer wrote on LinkedIn about the impact of USPS Ground Advantage rates going into effect in July. As noted above, that’s the new name for the consolidation of First Class Package Service, USPS Retail Ground, and Parcel Select Ground.
While under-16 ounce rates aren’t really changing, Gordon said 1-20 Lbs. will actually decrease in price.
Gordon also said Media Mail is going up 7 percent! Check out his post on LinkedIn.
If you have trouble with that link, try this one: