USPS Announces New Prices for 2023

A recent announcement from the US Postal Service claims that it offers some of the lowest shipping rates in the mailing industry and is a great value to reach the more than 163 million delivery points they service across America.  To highlight this announcement, the USPS is reporting the following:

• 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

• No price increase for USPS Connect Local, which gives businesses of all sizes the ability to reach local customers at affordable rates

• Reduced pricing for some Retail Priority Mail Flat-Rate products below the temporary price currently in place

• Priority Mail Commercial rate to increase by 3.6 percent, well below the rate of inflation

So that’s the good news.

And then there is some mixed news as well.

The U.S. Postal Service has filed notice with the Postal Regulatory Commission (PRC) today of price changes for Shipping Services to take effect Jan. 22, 2023.

These proposed prices were approved by the Postal Service governors. Notably, there is no price increase for Parcel Select Ground, which continues to be a reliable and economical shipping option. The pricing for USPS Connect Local will remain unchanged. This service provides businesses with an affordable same-day and next-day delivery for their local customers.

In addition, 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 only 3.6 percent, well below the rate of inflation.

Overall, Priority Mail service prices will increase approximately 5.5 percent, Priority Mail Express service prices will increase by 6.6 percent, and First-Class Package Service prices will increase by 7.8 percent. The PRC will review these price increases before they are scheduled to take effect, but you can expect them to be approved without change.

Shipping Services price adjustments will vary by product. Although Mailing Services price increases are based on the consumer price index, Shipping Services prices are primarily adjusted according to market conditions. The Postal Service governors evaluate shipping rates and fees and adjust them when needed, as part of the Postal Service’s 10-year “Delivering For America plan” which is designed to reverse a projected $160 billion in operating losses over the next 10 years.

The Postal Service’s often heard “public service announcement” states the following:

“The USPS has some of the lowest letter mail postage rates in the industrialized world and also continues to offer a great value in shipping. Unlike some other shippers, (the proper description is Carriers and not Shippers, btw), the Postal Service has upfront pricing and does not add surcharges for residential delivery or regular Saturday delivery.  The Postal Service generally receives no tax dollars for operating expenses and relies on the sale of postage, products, and services to fund its operations.”

Here are the proposed domestic Priority Mail Flat Rate retail price changes for 2023:

The complete Postal Service price filings with prices for all products can be found on the PRC website under the Daily Listings section at prc.gov/dockets/daily. For the Shipping Services filing, see Docket No. CP2023-42. The Postal Service provides additional resources to assist customers regarding the price changes. These tools include price lists, downloadable price files and Federal Register Notices. This information will be available on the Postal Service’s Postal Explorer website at pe.usps.com/PriceChange/Index on Wednesday November 16, 2022.