US Postal Service Rate Increases Coming January 24, 2021
On January 24, 2021, the US Postal Service will be increasing prices on many of its mailing products. Here are some highlights of what to expect based on retail prices.
Discounted commercial rates on Priority Mail and Priority Mail Express services will also increase, but shippers using shipping platforms that offer these rates should contact their vendor for more details.
First-Class Mail and Other Common Low-Cost Mailing Services
| Product | Current Price | New Price |
| Letters additional ounce(s) | 15 cents | 20 cents |
| Letters (metered 1 oz.) | 50 cents | 51 cents |
| Domestic Postcards | 35 cents | 36 cents |
| Letters (1 oz.) | 55 cents | 55 cents (no change) |
| Flats (1 oz.) | $1 | $1 (no change) |
First-Class Package Service Examples*
| Product | Current Price | New Price |
| First-Class Package (1oz / Zone 1) | $3.80 | $4.00 |
| First-Class Package (5oz / Zone 3) | $4.65 | $4.85 |
| First-Class Package (10oz / Zone 5) | $5.45 | $5.65 |
| First-Class Package (13oz / Zone 8) | $6.50 | $6.75 |
USPS Retail Ground Examples*
| Product | Current Price | New Price |
| USPS Retail Ground (1lbs / Zone 1) | $7.50 | $7.70 |
| USPS Retail Ground (5lbs / Zone 3) | $11.30 | $11.50 |
| USPS Retail Ground (10lbs / Zone 5) | $24.50 | $25.40 |
| USPS Retail Ground (10lbs / Zone 8) | $40.05 | $41.50 |
Priority Mail Flat Rate Services
| Product | Current Price | New Price |
| Small Flat-Rate Box | $8.30 | $8.45 |
| Medium Flat-Rate Box | $15.05 | $15.50 |
| Large Flat-Rate Box | $21.10 | $21.90 |
| APO/FPO Large Flat-Rate Box | $19.60 | $20.40 |
| Regular Flat-Rate Envelope | $7.75 | $7.95 |
| Legal Flat-Rate Envelope | $8.05 | $8.25 |
| Padded Flat-Rate Envelope | $8.40 | $8.55 |
Priority Mail Examples*
| Product | Current Price | New Price |
| Priority Mail (1lbs / Zone 1) | $7.50 | $7.70 |
| Priority Mail (5lbs / Zone 3) | $11.30 | $11.50 |
| Priority Mail (10lbs / Zone 5) | $27.90 | $29.00 |
| Priority Mail (10lbs / Zone 8) | $44.55 | $46.75 |
Priority Mail Express Examples*
| Product | Current Price | New Price |
| Priority Mail Express (1lbs / Zone 1) | $26.75 | $26.75 |
| Priority Mail Express (5lbs / Zone 3) | $37.95 | $37.95 |
| Priority Mail Express (10lbs / Zone 5) | $90.75 | $94.45 |
| Priority Mail Express (10lbs / Zone 8) | $105.20 | $110.35 |
* Example rates are for comparison purposes only and will vary based on weight and zone
USPS Rate Increase Bad Timing
The US Postal Service says it has some of the lowest letter-mail postage rates in the industrialized world and continues to offer a great value in shipping. Unlike some other shippers, the Postal Service does not add surcharges for fuel, residential delivery or regular Saturday delivery.
While these price increases will not be welcome by online merchants and sellers who became increasingly frustrated during the 2020 holiday season with many delayed packages, the adjustments compare favorably to rate hikes implemented for 2021 by UPS and FedEx with effective dates of December 27 (UPS) and January 4 (FedEx).
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Richard Meldner
Richard is co-founder of eSeller365. He has over 17 years of experience on eBay which includes tens of thousands of sales to buyers in over 100 countries and even has experience with eBay’s VeRO program enforcing intellectual property rights for a former employer. And for about two years Richard sold products on Amazon using Amazon FBA in the US.
To “relax” from the daily business grind, for a few weekends a year, he also works for IMSA as a professional race official.