
Online sellers are facing the prospect a 6 percent increase in USPS Priority Mail shipping costs in January. The USPS filed for higher rates that, if approved by the Postal Regulatory Commission, would take effect on January 21, 2018.
While Priority Mail rates would increase by an average of 3.9% in total, retail prices would increase by an average of only 0.8 percent - that's the rate you pay at the window.
However, sellers who print shipping labels online would see Priority Mail rates rise by an average of 6.2% for Commercial Base pricing (the most common). Those lucky enough to get Commercial Plus rates (high volume customers) would see an average rate hike of 6.1%.
Here's a summary of some of the RETAIL rates that are changing:
Letters (1 ounce): 49 cents (current), 50 cents (proposed)
Letters (additional ounces): 21 cents (no change from current price)
Outbound international letters (1 ounce): $1.15 (no change from current price)
Domestic postcards: 34 cents (current), 35 cents (proposed)
Small flat-rate box: $7.15 (current), $7.20 (proposed)
Medium flat-rate box: $13.60 (current), $13.65 (proposed)
Large flat-rate box: $18.85 (current), $18.90 (proposed)
Regular flat-rate envelope: $6.65 (current), $6.70 (proposed)
Legal flat-rate envelope: $6.95 (current), $7 (proposed)
Padded flat-rate envelope: $7.20 (current), $7.25 (proposed)
Because Priority Mail is considered a "competitive" product rather than "market dominant," the rate changes seem likely to be approved. As the USPS states, "While Mailing Services price increases are limited based on the Consumer Price Index, Shipping Services prices are adjusted strategically, according to market conditions and the need to maintain affordable services for customers."
Payment processors charge fees on the total amount of transactions, so online sellers will see those costs rise as well. And eBay takes a commission on shipping costs in addition to the value of the item sold, meaning eBay sellers are always particularly hard hit by postage rate increases.