As the Holiday season grows ever closer, it’s time to start thinking about the impact of increased shipping costs. This is not the first-time shipping companies have increased prices for a holiday season and it certainly won’t be the last. The price increases for the past three holiday seasons by the United States Postal Service (USPS) have been to build financial sustainability for the USPS and is part of a 10-year plan.
On August 9th the USPS filed notice with the Postal Regulatory Commission (PRC) for their planned holiday price increases and it was approved later that day by the Governors of the Postal Service. This price increase is to go into effect October 2nd at 12AM Central time and will continue until January 22nd 2023.
These changes will increase shipping costs from anywhere between $.25 and $6.00 per package.
The planned price changes include:
Priority Mail and Priority Mail Express:
Commercial:
$0.75 increase for PM and PME Flat Rate Boxes and Envelopes.
$0.25 increase for Zones 1-4, 0-10 lbs.
$0.80 increase for Zones 5-9, 0-10 lbs.
$0.75 increase for Zones 1-4, 11-25 lbs.
$2.80 increase for Zones 5-9, 11-25 lbs.
$3.00 increase for Zones 1-4, 26-70 lbs.
$6.50 increase for Zones 5-9, 26-70 lbs.
Retail:
$0.95 increase for PM and PME Flat Rate Boxes and Envelopes.
$0.30 increase for Zones 1-4, 0-10 lbs.
$1.00 increase for Zones 5-9, 0-10 lbs.
$0.95 increase for Zones 1-4, 11-25 lbs.
$3.20 increase for Zones 5-9, 11-25 lbs.
$3.25 increase for Zones 1-4, 26-70 lbs.
$6.45 increase for Zones 5-9, 26-70 lbs.
First-Class Package Service, Parcel Select Ground, and USPS Retail Ground:
Commercial:
$0.25 increase for Zones 1-4, 0-10 lbs.
$0.40 increase for Zones 5-9, 0-10 lbs.
$0.75 increase for Zones 1-4, 11-25 lbs.
$1.60 increase for Zones 5-9, 11-25 lbs.
$3.00 increase for Zones 1-4, 26-70 lbs.
$5.50 increase for Zones 5-9, 26-70 lbs.
Retail:
$0.30 increase for Zones 1-4, 0-10 lbs.
$0.60 increase for Zones 5-9, 0-10 lbs.
$0.95 increase for Zones 1-4, 11-25 lbs.
$2.70 increase for Zones 5-9, 11-25 lbs.
$3.25 increase for Zones 1-4, 26-70 lbs.
$5.85 increase for Zones 5-9, 26-70 lbs.
The Competition
Just like in previous years we would expect to see USPS competitors such as FedEx and UPS increase their costs as well. We have checked and nothing is posted on their websites yet, but we would expect to see price increases posted in late September to early October.
Here’s what happened last year and was published on our blog last October.
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