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Thu Nov 10 2022 22:00:21

USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

By: Ina Steiner

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Online sellers will pay more in January to ship packages under rates the USPS submitted to the Postal Regulatory Commission on Thursday. Sellers should also watch for changes to Non Standard Fees (up to $25!), and later in 2023, the US Postal Service will make a major change to First-Class Package Service (FCPS).

First, January 2023 rates in a nutshell: "Overall, Priority Mail service prices would increase approximately 5.5 percent, Priority Mail Express service prices would increase by 6.6 percent, and First-Class Package Service prices would increase by 7.8 percent." 

However, those are *Retail* rates (the rate you pay at the post office). The USPS pointed out that Priority Mail *Commercial* rates will increase by 3.6 percent, "well below the rate of inflation," it noted. (Commercial rates are available to shippers who purchase shipping online. Note that Commercial prices will, on average, reflect a 20.1 percent discount off of Retail prices.)

We confirmed that the USPS was comparing the proposed 2023 rates to the prices that were implemented in January 2022 - and that it was not comparing them to the temporary peak rates that are currently in place (effective Oct. 2, 2022 - Jan. 22, 2023). 

The new rates will take effect on January 22, 2023. The USPS previously submitted proposed "Market Dominant" rates that will take effect on the same date. (See the October 7th AuctionBytes Blog post, "USPS January Rate Hike, Part 1: First Class, Media Mail.")

In the filing with the PRC, the USPS stated: "Nonstandard Fees (NSFs) are changing for our full network products for 2023. Priority Mail will see an increase in NSFs, while ground products will see a price decrease in NSFs."

The USPS implemented NSFs in April 3, 2022 as follows:

Length greater than 22 inches: $4
Length greater than 30 inches: $15
Cube greater than 2 cubic feet: $15

In January, the fees will change as follows:

Priority Mail:
Length greater than 22 inches: $4
Length greater than 30 inches: $15
Cube greater than 2 cubic feet: $25

Parcel Select, First-Class Package Service, Retail Ground:
Length greater than 22 inches: $4
Length greater than 30 inches: $7
Cube greater than 2 cubic feet: $15

(Be sure to check which rates apply to your shipments.)

The USPS also revealed a major change coming to First-Class Package Service (FCPS): "Later in 2023, the Postal Service plans to enhance and expand the FCPS product up to seventy pounds, but for January 2023, FCPS will remain only a lightweight offering."

The USPS also pointed out there would be no price increase for Parcel Select Ground which, "coupled with our recently improved service standard to 2-5 days from 2-8 days, offers a reliable and economical option for shippers."

As we had reported in September, the USPS confirmed today: "New for 2023, the Priority Mail Regional Rate Boxes will be eliminated because of low usage and to avoid product redundancies. Also new for 2Q23, the zoned prices for the existing "Local, 1, 2" Zone will be differentiated. The Local zone will be eliminated, and separate prices will be established for Zone 1 and Zone 2."

The Postal Regulatory Commission is likely to rubber-stamp the proposed 2023 rates given they fall under the "Competitive" services category. 

You can find the details on the PRC website at prc.gov/dockets/daily under Docket CP2023-42 The information won't become available on the Postal Explorer website at pe.usps.com/PriceChange/Index until November 16, 2022.



Comments (18) | Permalink

Readers Comments

Perminate Link for USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023   USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

by: lessthanthreerecords This user has validated their user name.

Thu Nov 10 23:07:05 2022

I only have one item that will be over 2 cubic feet (and also over 30").  I first purchased that item just before the USPS dimensional weight kicked in.  After that, I had to raise my price to a point that this item will likely never sell.  Then, USPS institutes these surcharges, raising the already exorbitant rate by a whopping $30.  Now that $30 Is going to be $40?!  Thanks, USPS, you've been successful in eliminating my chance of selling this item, then lowering that possibility from 0% to 0%, then again from 0% to as low as 0%.  When is enough enough?  I have been hearing for years that if they would just remove that retirement funding policy, prices wouldn't need to go up as much.  Well, it's gone ($56 BILLION profit, I believe I read?), and not only are prices still going up, they are SKYROCKETING like never before.  No more is USPS a service to the American people!

Perminate Link for USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023   USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

by: UB This user has validated their user name.

Fri Nov 11 07:06:35 2022

The Postal Service does not have the machines that can handle the larger packages thus mail handlers physical sort them thus the cost goes up so USPS is trying to lower the amount they receive to save money. USPS did not make a profit of $56 Billion that is all paper non cash bullshit just like the non cash losses that have shown for years.  

Perminate Link for USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023   USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

This user has validated their user name. by: Rexford

Fri Nov 11 07:37:41 2022

DeJoy seems to be stuck there like glue.

Perminate Link for USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023   USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

by: Snapped This user has validated their user name.

Fri Nov 11 09:24:34 2022

“Larger” packages have always been cheaper to ship by carriers other than USPS.  After about 3 lbs (6.5 kg) or so, it ceases to be ‘mail and parcels’ and becomes freight.  Mixing them clogs the mail stream, with an infrastructure still evolving for eCom.  They simply aren’t yet efficient above that threshold, (though they are happy to accept the business) and may choose not to stress over it while they battle other distribution inefficiencies for now.

Perminate Link for USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023   USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

by: Mbrj201 This user has validated their user name.

Fri Nov 11 12:38:04 2022

De Joy will ruin USPS, gutting the pension fund & offering the proprietary systems to the highest bidder.

Perminate Link for USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023   USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

by: CT Bay This user has validated their user name.

Sat Nov 12 07:42:11 2022

I have been pestering my Senator and Representatives to do something about it.

US small business continues to get squeezed while China undercuts the market sending things all over the US for free. How is a US small business supposed to compete with that.

Maybe if they would stop moving Chinas stuff for free.

Perminate Link for USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023   USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

by: Rogue This user has validated their user name.

Mon Nov 14 04:49:51 2022

Of course he's trying to RUN THE COMPANY INTO THE GROUND !!!
DeJoy’s investments include stakes in XPO Logistics, UPS, J.B. Hunt, Forward Air Corp, and Saia Inc, with total investments in USPS competitors of between $30 million and $75.8 million. These financial stakes in competing companies are illegal for DeJoy or his wife to own while he remains an active federal government employee.

Perminate Link for USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023   USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

by: Chicago48 This user has validated their user name.

Mon Nov 14 06:36:03 2022

Two words:  UPS, FEDEX.  Congress needs to step in.  Enough is enough.

Perminate Link for USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023   USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

by: Cbaker This user has validated their user name.

Mon Nov 14 07:38:56 2022

They have to pay for those battery operated trucks they’re buying.  

Perminate Link for USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023   USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

This user has validated their user name. by: toolguy

Mon Nov 14 10:49:23 2022

I can understand this increase over past increases.

Fuel prices are thru the roof, so are repair and maintenance costs.

I blame the current president for most of this. . . . .

Perminate Link for USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023   USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

by: 4yourinfo This user has validated their user name.

Mon Nov 14 13:42:35 2022

USPS better be careful with their price increases they are slowly pricing themselves out of the market exactly what FedEx did... I dropped FedEx for UPS a year ago when their prices went insane! FedEx claims Ecommerce crashed that's half of the story the other part is all their customers jumped ship to UPS. Only recently did they realize this and they are trying to offer better rates to their previous customers including better rates for eBay shipping... Look at UPS they seem to be doing just fine -  Are they not in the same business as FedEx?

Perminate Link for USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023   USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

This user has validated their user name. by: The End

Tue Nov 15 10:01:42 2022

Business is falling off, not even a shadow of the biz of 2019...

Perminate Link for USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023   USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

by: samezip This user has validated their user name.

Wed Nov 16 20:03:56 2022

usps like small parcel (1 cubic is the best)

Perminate Link for USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023   USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

This user has validated their user name. by: epuise

Fri Nov 18 11:01:14 2022

Once Priority Regional A is no longer available, at least 25% of my NY to West Coast parcels will be unaffordable... DeJoy is eliminating A not because nobody USES it, but, because it was SAVING the Customer MONEY... Trump's boy... All about taking from little guys.

Perminate Link for USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023   USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

This user has validated their user name. by: Bill

Fri Nov 18 23:39:54 2022

epuise,

All politicians are screwing the little guys. The current administration are the ones that added the $600 reporting requirement into the American Rescue Plan Act of 2021.

Perminate Link for USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023   USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

This user has validated their user name. by: epuise

Sat Nov 19 08:53:38 2022

@Bill
The GOP Congress 'screwed' the 'little guys' (who MUST pay) w/ Tax Cuts for the rich (like Trump)... The 1099 doesn't affect ME... I have been declaring all income, taking any deductions, PAYING taxes SINCE selling day one... The Trumpy Postmaster General (DeJoy), IS hurting ALL of us by raising a SERVICE the U.S. Gov't provides to UNAFFORDABLE amounts.

Perminate Link for USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023   USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

This user has validated their user name. by: Bill

Sat Nov 19 23:48:11 2022

epuise :

The GOP controlled the 115th congress in 2017. I know that I got a lot of money back from the tax reform bill since my individual write off was doubled.
Every time the democrats control congress I get screwed.

Perminate Link for USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023   USPS Priority Mail Commercial Rates to Rise 3.6 Percent in 2023

This user has validated their user name. by: Bill

Sat Nov 19 23:55:42 2022

But again this is not politics, since I am libertarian, and most politicians are corrupt and DeJoy is a politician.
This is about the raise in rates from the PO and the discount that is given to the largest country that ships items, China.



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