AuctionBytes Blog
Covering auctions, collectibles and marketplace selling.

AuctionBytes Blog The AuctionBytes Blog has been giving a voice to online merchants since its launch in 2005. Named one of the world's top 30 blogs in 2008 by "Blogging Heroes." Weigh in with your thoughts on the joys and pitfalls of selling online.
Mon Nov 16 2020 16:11:39

USPS Announces 2021 Rate Hike and New $100 Surcharge

By: Ina Steiner

Sponsored Link

This is the sound of the other shoe dropping, and it's not a pleasant sound for online sellers who rely on the Post Office to deliver their packages. The US Postal Service is raising rates in January for Shipping services, including Priority Mail. 

Today's news follows the previously announced rate increase for Mail service, also taking effect on January 24, 2021.

Here's by how much (an approximate average) rates are rising for some popular services:

Priority Mail service: 3.5% 
Priority Mail Express service: 1.2%
First-Class Package Service (FCPS) Commercial: 6.5%
First-Class Package Service (FCPS) Retail: 4.8%

USPS filed the proposals with the Postal Regulatory Commission (PRC) today, November 16, and we have no reason to think the PRC won't approve the 2021 rate increase as it did for the 2021 Mail services increase.

One of the first things that greets readers when reviewing the filing is the following:

"For Priority Mail Express, Priority Mail, Parcel Select, Parcel Return Service, USPS Retail Ground, and First-Class Package Service customers, a $100 fee will be assessed on parcels found in the mailstream that exceed the maximum mailable size limit (combined length and girth greater than 130 inches)."

That's a surcharge sellers will have to pay close attention to when mailing packages come mid-January. We've yet to dig deeper to see if there are other surprises.

The USPS provided the following list of current and planned prices for certain services in Monday's announcement:

Priority Mail small flat-rate box: $8.30 (current), $8.45 (planned)
Priority Mail medium flat-rate box: $15.05 (current), $15.50 (planned)
Priority Mail large flat-rate box: $21.10 (current), $21.90 (proposed)
Army/Air Post Office and Fleet Post Office large flat-rate box: $19.60 (current), $20.40 (planned)
Priority Mail regular flat-rate envelope: $7.75 (current), $7.95 (planned)
Priority Mail legal flat-rate envelope: $8.05 (current), $8.25 (planned)
Priority Mail padded flat-rate envelope: $8.40 (current), $8.55 (planned)
Overall, these changes would raise prices approximately 3.5 percent for Priority Mail service and 1.2 percent for Priority Mail Express service.

What has been new this year for sellers is the USPS holiday rate increase that went into effect on October 18 and runs through December 27, 2020. An informal survey of EcommerceBytes reader had revealed that small online sellers believed holiday shoppers would bear the brunt of USPS surge pricing, though even those who pass along the higher rates will still see higher costs.

Check out the filing on the PRC.gov website (PDF format), and let us know what you think.

Comments (25) | Leave Comment | Permalink
Readers Comments

Perminate Link for USPS Announces 2021 Rate Hike and New $100 Surcharge   USPS Announces 2021 Rate Hike and New $100 Surcharge

by: Disgusted This user has validated their user name.

Thu Nov 19 11:00:43 2020

Higher prices equals lower service.  Never seen the USPS or UPS this slow.  Amazon even dropped the 2 day for prime.  In addition they take your order, give you a date and then a couple of days later change to the date and add on another 2 or 3 days.

Perminate Link for USPS Announces 2021 Rate Hike and New $100 Surcharge   USPS Announces 2021 Rate Hike and New $100 Surcharge

by: onlinesales This user has validated their user name.

Thu Nov 19 14:07:26 2020

Shanna,
Why did Trump not fix the pricing for China like he promised? Simple as that, yet you blame Biden for not changing it either. Why not just the truth, American businesses such as Ebay, Amazon, and many others lobby the great president Biden and Trump to keep rates low for China so they can sell goods from over there and we pay the higher rates here.

yet, the reason nothing changes is simple, simple. People that spew its China Biden or liberal nutjobs, radical left, or crooked unethical conservatives.  Instead of understanding the problem is we are all diverted and you hate on Biden and business keeps getting it done at our expense. People hated on Trump, and business got it done, where is Carrier? Where is GM? Why the tax gift to corporations that can higher children in Indonesia and get the same tax rate that a company such as Stihl does by employing Americans. So what's the incentive to stay here and employ people?

No take the tack its Biden or Trump and hate them, all the while Fox news and Cnn ad revenues are the highest ever.  Who's winning, I am barely surviving was that Hillary's fault to (who gives a crap) why do we allow our elected officials to divert us that is a question that only you can answer.

I get it you don't want to believe you have been hustled, we all have. Not trump but all of them.  

Perminate Link for USPS Announces 2021 Rate Hike and New $100 Surcharge   USPS Announces 2021 Rate Hike and New $100 Surcharge

by: spooky This user has validated their user name.

Thu Nov 19 14:43:48 2020

Max for Priority is 108", max for parcel post is 130" but anything over 108 already gets a huge price hike. My question is if I mail something Priority at 108" which I have done a few times but they measure box after the fact at 109" as every box cab flex a bit, would I be assessed $100 fine???

Perminate Link for USPS Announces 2021 Rate Hike and New $100 Surcharge   USPS Announces 2021 Rate Hike and New $100 Surcharge

by: fashionista This user has validated their user name.

Thu Nov 19 21:55:11 2020

@shanna
it's obvious you don't have anything of value to add to the discussion.

Perminate Link for USPS Announces 2021 Rate Hike and New $100 Surcharge   USPS Announces 2021 Rate Hike and New $100 Surcharge

by: SANT1N1 This user has validated their user name.

Mon Nov 30 11:47:02 2020

The "PRC" should stand for People's Republic Of China!

Click to view more comments
1 2 


Login is required to post comments.
To sign in to leave a comment, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.