Starting January 22nd, 2023, the United States Postal Service will implement changes to their shipping rates. These changes include increasing Priority Mail commercial rates and decreasing for Priority Mail Flat Rate retail products. Let’s take a closer look at what these changes mean for businesses.
Updated Mailing Rates:
- First-Class Mail® Forever stamp is increasing from $0.60 to $0.63.
- First-Class Mail (FCM) prices are increasing by about 4.2% to offset the rise in inflation.
- Affected Mailing Services and new pricing, based on the 4.2% increase:
- FCM Letters (1 oz) is increasing from $0.60 to $0.63
- FCM Letters (metered 1 oz) are increasing from $0.57 to $0.60
- Domestic FCM Postcards are increasing from $0.44 to $0.48
- FCM International Postcards are increasing from $1.40 to $1.45
- FCM International Letters (1 oz) are increasing from $1.40 to $1.45
Updated Shipping Rates:
- Some Priority Mail Flat Rate® retail product prices will be reduced compared with the temporary rate adjustment currently in place, and Priority Mail® commercial rates will increase by 3.6%, below the inflation rate.
- Priority Mail service prices increase by about 5.5%, Priority Mail Express® service prices increase by 6.6%, and First-Class Package Service® prices increase by 7.8%.
- Priority Mail Flat Rate retail price changes are:
- Small Flat Rate Box is decreasing from $10.40 to $10.20
- Medium Flat Rate Box is increasing from $17.05 to $17.10
- Large Flat Rate Box is increasing from $22.45 to $22.80
- APO/FPO Large Flat Rate Box is increasing from $20.95 to $21.20
- Regular Flat Rate Envelope is decreasing from $9.90 to $9.65
- Legal Flat Rate Envelope is decreasing from $10.20 to $9.95
- Padded Flat Rate Envelope is decreasing from $10.60 to $10.40
- FedEx® shipping rates are increasing on average by 6.9%, and affect their FedEx Express, FedEx Ground, and FedEx Freight services.
- UPS® SurePost services will increase by an average of 6.9%.
What does it mean for your business?
These changes mean business owners who regularly use Priority Mail services should review their budgeting plans to adjust accordingly; they may need to raise their shipping costs to account for the increases or lower them to take advantage of the decreases in specific flat-rate retail product prices. Additionally, business owners should consider any additional fees, such as fuel surcharges, that may be added to the increased rates, which could have an even bigger impact on their bottom line.
Use a postage meter or other shipping software for more cost-effective mailing.
Postage meters are a great way to save money on postage, and they’re also an essential part of any business’ shipping operation. You can use a postage meter for both outbound and inbound mailings and shipping and bulk mailing needs. Most businesses find that postage meters save them time, money, and hassle when it comes to mailing. Read our blog post, How to Reduce Postage Costs for Your Businesses Outbound Mailing, to learn more or speak to one of our experts for a free consultation.
To learn more about the USPS postage rate changes, visit the USPS website: 2023 Postage Price Changes