USPS Rate Increases for 2020

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USPS Rate Changes for 2020

 

It’s that time of year again - rate increases from USPS are looming on the horizon and it’s time to start preparing. Put it on your calendar for early January to make any adjustments to your pricing and customer service strategy to reflect the changes which take effect on January 26, 2020. (Note: These new rates are subject to approval by the Postal Rate Commission (PRC), which is widely anticipated).

Overall, rates increased for most products, weights, and zones. We’ll go over changes to the most popular USPS shipping services including Priority Mail, First Class Package, Flat Rate, and Regional Rate.

Here are the highlights of the USPS 2020 Shipping Rate Changes:

  • Priority Mail packages from 1-5 Lbs will see a price increase of 2.7%,
  • Higher weights will see an average increase of 6.6%,
  • Cubic pricing will increase by some 4.8%

Now for a bit more detail on the changes that will have the greatest impact for e-Commerce sellers:

Priority Mail Flat Rate - 2020 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE - 2020 Rates vs. 2019 Rates

Mail piece

2020

2019

Increase

Flat Rate Envelope

$7.15

$6.95

$0.20

Legal Flat Rate Envelope

$7.45

$7.25

$0.20

Padded Flat Rate Envelope

$7.75

$7.55

$0.20

Small Flat Rate Box

$7.65

$7.50

$0.15

Medium Flat Rate Box

$13.20

$12.80

$0.40

Large Flat Rate Box

$18.30

$17.60

$0.70

APO/FPO Large Flat Rate Box

$16.80

$16.10

$0.70

Postage rates for Priority Mail Flat Rate products will increase in 2020. The popular Priority Mail Flat Rate Padded Envelope will cost $7.75 in 2020 compared to $7.55 currently, a $0.20 increase. Rates for the Priority Mail Medium Flat Rate Box will increase 40 cents, to $13.20 from $12.80 currently. Rates for the Large Flat Rate Box will increase 70 cents, to $18.30 from $17.60 currently.

USPS Trucks

Priority Mail -- 2020 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE - 2020 Rates vs. 2019 Rates

Weight (lbs.)

Zones 1 & 2

Zone 3

Zone 4

Zone 5

Zone 6

Zone 7

Zone 8

Zone 9

1

$0.07

$0.07

$0.07

$0.15

$0.16

$0.16

$0.17

$1.49

2

$0.22

$0.23

$0.24

$0.26

$0.29

$0.31

$0.33

$2.28

3

$0.23

$0.24

$0.25

$0.28

$0.35

$0.39

$0.46

$3.09

4

$0.23

$0.25

$0.26

$0.30

$0.41

$0.47

$0.53

$3.72

5

$0.23

$0.25

$0.27

$0.31

$0.47

$0.54

$0.61

$4.33

Priority Mail will see an average increase of 2.8%. A 1 lb. package going to Zone 8 using Priority Mail will cost $8.42 in 2020 compared to $8.25 currently.

For 1 and 2 lb. packages, the Priority Mail rate increases are modest with a maximum increase of $0.17 for 1 lb. Zone 8, costing $8.42 (increase of 2.0%) and an increase of $0.33 for 2 lb. Zone 8 to $11.19 (increase of 2.9%). For packages weighing 4 lbs. or more, the rate increase are much more significant with increases of at least $0.53 per package.

Priority Mail Regional Rate Boxes - 2020 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE - 2020 rates vs. 2019 rates

Box Type

Zones 1 & 2

Zone 3

Zone 4

Zone 5

Zone 6

Zone 7

Zone 8

Zone 9

A

$0.03

$0.07

$0.09

$0.16

$0.42

$0.58

$0.90

$3.05

B

$0.02

$0.01

$0.02

$0.88

$0.57

$0.74

$0.86

$4.65

Rates for Priority Mail Regional Rate Boxes will be increasing for all shipping zones in 2020. A 5 lb. package going to Zone 8 using Regional Rate Box A will increase by $0.90 to $12.10 in 2020 compared to $11.20 currently.

Regional Rate Box A packages traveling shorter distances (up to Zone 5) are seeing a modest increase of up to 16 cents. Packages traveling to farther shipping zones are increasing much more – Zone 6 is seeing a 42 cents increase, Zone 7 is seeing a 58 cents increase and Zone 8 is seeing a 90 cents increase.

usps mailbox

First Class Package Service - 2020 Rates (Commercial Base Pricing)

INCREASE PER PACKAGE - 2020 Rates vs. 2019 Rates

Mailpiece Weight

Zones 1 & 2

Zone 3

Zone 4

Zone 5

Zone 6

Zone 7

Zone 8

Zone 9

1 ounce

$0.08

$0.08

$0.08

$0.08

$0.09

$0.09

$0.09

$0.09

2 ounces

$0.08

$0.08

$0.08

$0.08

$0.09

$0.09

$0.09

$0.09

3 ounces

$0.08

$0.08

$0.08

$0.08

$0.09

$0.09

$0.09

$0.09

4 ounces

$0.08

$0.08

$0.08

$0.08

$0.09

$0.09

$0.09

$0.09

5 ounces

$0.03

$0.03

$0.03

$0.03

$0.03

$0.03

$0.04

$0.04

6 ounces

$0.03

$0.03

$0.03

$0.03

$0.03

$0.03

$0.04

$0.04

7 ounces

$0.03

$0.03

$0.03

$0.03

$0.03

$0.03

$0.04

$0.04

8 ounces

$0.03

$0.03

$0.03

$0.03

$0.03

$0.03

$0.04

$0.04

9 ounces

$0.11

$0.12

$0.12

$0.12

$0.12

$0.13

$0.13

$0.13

10 ounces

$0.11

$0.12

$0.12

$0.12

$0.12

$0.13

$0.13

$0.13

11 ounces

$0.11

$0.12

$0.12

$0.12

$0.12

$0.13

$0.13

$0.13

12 ounces

$0.11

$0.12

$0.12

$0.12

$0.12

$0.13

$0.13

$0.13

13 ounces

$0.10

$0.10

$0.10

$0.15

$0.16

$0.16

$0.17

$0.17

14 ounces

$0.10

$0.10

$0.10

$0.15

$0.16

$0.16

$0.17

$0.17

15 ounces

$0.10

$0.10

$0.10

$0.15

$0.16

$0.16

$0.17

$0.17

15.999 ounces

$0.10

$0.10

$0.10

$0.15

$0.16

$0.16

$0.17

$0.17

 

Overall rates fo First Class Package Service will increase by 2.2%. A 15.999 ounce package for First Class Package Service traveling to zone 8 will increase $0.17 to $5.70 in 2020 from $5.53 currently.

Packages that weigh 9 to 15.999 ounces are all seeing increases of 10 cents or more. A package weighing 15.999 ounces traveling to Zone 8 is seeing an increase of 17 cents (3.0%) to $5.70 in 2020 from $5.53 in 2019.

 

Those are the changes that will impact the largest number of e-Commerce sellers and SmartShyp customers. Of course, SmartShyp will be updating all of our labels so the new USPS pricing will be automatically calculated. You don’t have to do anything with your SmartShyp account.

You may however, want to adjust your pricing strategy if you offer free shipping to accommodate the new costs, or plan an info blast to inform your customers about the changes so they understand why their shipping is going up.

 

To read the USPS announcement click here:

https://www.prnewswire.com/news-releases/us-postal-service-announces-new-prices-for-2020-300935017.html

For a complete list of all proposed changes click here: https://pe.usps.com/pricechange/index