Thursday, December 1 2022

The cost of sending parcels by Media Mail will increase by an average of 4.4% on January 22, 2023. PO box rentals will increase by 4.5%, and the cost of a First Class stamp will increase by 5% to 63 pennies.

The USPS filed its proposed mainstream rate increases with the Postal Regulatory Commission on October 7, 2022, which generally gives proforma approval.

What about changes to the first class package service? FCPS has moved from Market Dominant class to Competitive class — expect to see another USPS filing soon detailing its plans for competitive rates, which include Priority Mail and other package services. (The USPS released a “pre-ruling” filing that proposed eliminating Priority Mail regional rate boxes and restructuring postal areas, such as we reported last month.)
In today’s case, the The USPS also revealed the price for mailing a domestic postcard will drop to 48 cents on Jan. 22, and a one-ounce letter sent to another country will drop to $1.45.

See also fee increases in January: certified mail and money order fees.

The rate hikes come despite massive financial relief from Congress in 2022. In a Press releasethe USPS said the proposed increases would raise first-class mail prices by about 4.2% “to offset rising inflation” and noted that the price changes had been approved by the service’s governors US postal.

And in its “Market Dominant Price Change Notice” notice to the PRC on Friday, the USPS justified using virtually all of its authority to raise rates:

“The Postal Service has about 4.2 percentage points of pricing authority for each class. Governors have decided to use nearly all of that authority. The Postal Service’s Delivering for America plan presents a balanced range of initiatives to achieve financial viability and service excellence, and pricing studies are an integral part of this plan.”

Where the USPS used to raise rates annually, it now raises rates twice a year. Taking into account so-called “temporary” leave rates, the USPS actually increases the rates 3 times a year. The 2022 holiday rates went into effect on October 2 and will continue until January 22, 2023.

No mention of higher shipping costs would be complete without reminding readers of the painful fact that sellers will pay higher payment processing fees as a result – and on eBay and Etsy, they will also pay higher commission fees.


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