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 24, 2021.
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.
2021 USPS Shipping Rate Increase Points of Interest:
- Rate increases are modest (2.04% or lower) for packages weighing up to 6 lbs. being delivered to Zones 1-5. The one exception is Zone 5 at 5 lbs. which is seeing an increase of $1.06 (9.96%).
- For all packages weighing up to 70 lbs. being delivered to Zones 6-8, the rate increases are significant at 4.50% or higher.
- For packages weighing 7 lbs. or more, Zone 1-5 are seeing a significant increase of 3.96% or higher.
- For packages weighing 11 lbs. or higher, the rate increase is a minimum of 7%.
- Rate increases for Zone 9 (U.S. territories) are increasing by 24.99% or more
- The maximum Priority Mail Commercial Base discount compared to Post Office (Retail) prices is 40%.
- NEW: An overweight/oversize surcharge of $100 will be added for packages that exceed the 70 lb. maximum weight limitation or the 130 inch length plus girth maximum dimensional size limit. This $100 surcharge must be paid by the shipper before the package will be delivered.
Now for a bit more detail on the changes that will have the greatest impact for e-commerce sellers:
Priority Mail Flat Rate - 2021 Rates (Commercial Pricing)
INCREASE PER PACKAGE - 2020 Rates vs. 2021 Rates
|
Mail piece |
2020 |
2021 |
Increase |
|
Flat Rate Envelope |
$7.15 |
$7.40 |
$0.20 |
|
Legal Flat Rate Envelope |
$7.45 |
$7.70 |
$0.25 |
|
Padded Flat Rate Envelope |
$7.75 |
$8.00 |
$0.25 |
|
Small Flat Rate Box |
$7.65 |
$7.90 |
$0.25 |
|
Medium Flat Rate Box |
$13.20 |
$13.75 |
$0.55 |
|
Large Flat Rate Box |
$18.30 |
$19.30 |
$1.00 |
|
APO/FPO Large Flat Rate Box |
$16.80 |
$17.80 |
$1.00 |
Postage rates for Priority Mail Flat Rate products will increase in 2021. The popular Priority Mail Flat Rate Padded Envelope will cost $8.00 in 2021 compared to $7.75 currently, a $0.25 increase. Rates for the Priority Mail Medium Flat Rate Box will increase 55 cents, to $13.75 from $13.20 currently. Rates for the Large Flat Rate Box will increase $1.00, to $19.30 from $18.30 currently.
Priority Mail -- 2021 Rates (Commercial Pricing)
INCREASE PER PACKAGE - 2020 Rates vs. 2021 Rates
|
Weight (lbs.) |
Zones 1 & 2 |
Zone 3 |
Zone 4 |
Zone 5 |
Zone 6 |
Zone 7 |
Zone 8 |
Zone 9 |
| 1 | $0.14 | $0.11 | $0.11 | $0.08 | $0.36 | $0.37 | $0.38 | $2.85 |
| 2 | $0.15 | $0.12 | $0.12 | $0.09 | $0.45 | $0.47 | $0.5 | $4.36 |
| 3 | $0.16 | $0.12 | $0.13 | $0.10 | $0.55 | $0.61 | $0.71 | $5.92 |
| 4 | $0.16 | $0.13 | $0.14 | $0.10 | $0.64 | $0.72 | $0.82 | $7.13 |
| 5 | $0.16 | $0.13 | $0.14 | $1.06 | $0.73 | $0.83 | $0.95 | $8.29 |
Priority Mail will see an average increase of 3.5% (Commercial Base). A 1 lb. package going to Zone 8 using Priority Mail will increase $0.38, costing $8.80 in 2021 compared to $8.42 in 2020.
Priority Mail Regional Rate Boxes - 2021 Rates (Commercial Base Pricing)
INCREASE PER PACKAGE - 2020 rates vs. 2021 rates
|
Box Type |
Zones 1 & 2 |
Zone 3 |
Zone 4 |
Zone 5 |
Zone 6 |
Zone 7 |
Zone 8 |
Zone 9 |
| A | $0.15 | $0.12 | $0.13 | $0.09 | $0.47 | $0.50 | $0.54 | $4.68 |
| B | $0.16 | $0.13 | $0.14 | $0.83 | $0.78 | $0.89 | $1.01 | $8.60 |
Rates for Priority Mail Regional Rate Boxes will be increasing for all shipping zones in 2021. A 5 lb. package going to Zone 8 using Regional Rate Box A will increase by $0.54 to $12.64 in 2021 compared to $12.10 in 2020.
Regional Rate Box A is priced at a 2 lb. regular Priority Mail rate, yet can contain products that weigh up to 15 lbs.
First Class Package Service - 2021 Rates (Commercial Pricing)
INCREASE PER PACKAGE - 2020 Rates vs. 2021 Rates
| Weight/Oz | Zones 1 & 2 |
Zone 3 |
Zone 4 |
Zone 5 |
Zone 6 |
Zone 7 |
Zone 8 |
Zone 9 |
|---|---|---|---|---|---|---|---|---|
| 1 oz | $0.27 | $0.27 | $0.28 | $0.28 | $0.29 | $0.30 | $0.31 | $0.31 |
| 2 oz | $0.27 | $0.27 | $0.28 | $0.28 | $0.29 | $0.30 | $0.31 | $0.31 |
| 3 oz |
$0.27 | $0.27 | $0.28 | $0.28 | $0.29 | $0.30 | $0.31 | $0.31 |
| 4 oz |
$0.27 | $0.27 | $0.28 | $0.28 | $0.29 | $0.30 | $0.31 | $0.31 |
| 5 oz |
$0.25 | $0.26 | $0.26 | $0.26 | $0.19 | $0.17 | $0.18 | $0.18 |
| 6 oz |
$0.25 | $0.26 | $0.26 | $0.26 | $0.19 | $0.17 | $0.18 | $0.18 |
| 7 oz |
$0.25 | $0.26 | 0.26 | $0.26 | $0.19 | $0.17 | $0.18 | $0.18 |
| 8 oz |
$0.25 | $0.26 | $0.26 | $0.26 | $0.19 | $0.17 | $0.18 | $0.18 |
| 9 oz | $0.11 | $0.12 | $0.12 | $0.12 | $0.20 | $0.21 | $0.22 | $0.22 |
| 10 oz | $0.11 | $0.12 | $0.12 | $0.12 | $0.20 | $0.21 | $0.22 | $0.22 |
| 11 oz |
$0.11 | $0.12 | $0.12 | $0.12 | $0.20 | $0.21 | $0.22 | $0.22 |
| 12 oz |
$0.11 | $0.12 | $0.12 | $0.12 | $0.20 | $0.21 | $0.22 | $0.22 |
| 13 oz |
$0.15 | $0.15 | $0.15 | $0.15 | $0.26 | $0.27 | $0.28 | $0.28 |
| 14 oz |
$0.15 | $0.15 | $0.15 | $0.15 | $0.26 | $0.27 | $0.28 | $0.28 |
| 15 oz |
$0.15 | $0.15 | $0.15 | $0.15 | $0.26 | $0.27 | $0.28 | $0.28 |
| 15.99 oz |
$0.15 | $0.15 | $0.15 | $0.15 | $0.26 | $0.27 | $0.28 | $0.28 |
Overall rates for 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 $5.98 in 2021 from $5.70 currently.
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://about.usps.com/newsroom/national-releases/2020/1009-usps-announces-new-prices-for-2021.htm
For a complete list of all proposed changes click here: https://pe.usps.com/pricechange/index
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