Mark your calendars--USPS is implementing temporary rate increases which target key package products for the 2022 holiday season. We want to inform you so you can make educated decisions for your eCommerce business. These changes will take place on October 2, 2022, and they will affect most products, weights, and zones. We’ll cover the most popular USPS shipping services including Priority Mail, First Class Package, Flat Rate, and Regional Rate.

The temporary rate increases will go into effect at 12:00 a.m., Central Time, on October 2, 2022 and remain in effect until 12:00 a.m. Central Time, January 22, 2023. 

These seasonal adjustments will bring costs for USPS’s commercial and retail customers in alignment with competitive practices. There will be no structural changes made as part of this implementation. 

USPS 2022 Holiday Season Proposed Temporary Rate Increases

Priority Mail and Priority Mail Express:

• $0.75 increase for PM and PME Flat Rate Boxes and Envelopes.
• $0.25 increase for Zones 1-4, 0-10 lbs.
• $0.80 increase for Zones 5-9, 0-10 lbs.
• $0.75 increase for Zones 1-4, 11-20 lbs.
• $2.80 increase for Zones 5-9, 11-20 lbs.
• $3.00 increase for Zones 1-4, 21-70 lbs.
• $6.50 increase for Zones 5-9, 21-70 lbs.

First-Class Package Service, Parcel Select Ground, and USPS Retail Ground:

• $0.25 increase for Zones 1-4, 0-10 lbs.
• $0.40 increase for Zones 5-9, 0-10 lbs.
• $0.75 increase for Zones 1-4, 11-20 lbs.
• $1.60 increase for Zones 5-9, 11-20 lbs.
• $3.00 increase for Zones 1-4, 21-70 lbs.
• $5.50 increase for Zones 5-9, 21-70 lbs.

These changes will affect a large number of eCommerce sellers and SmartShyp customers. SmartShyp will update all of our labels to reflect the new USPS pricing, which will be automatically calculated. If you are a SmartShyp user, there is nothing further you need to do with your SmartShyp account.

If you offer free shipping, you may want to consider how you’ll take these new costs into account. A good strategy is to prepare an email blast to your customers to communicate the changes and reasoning behind the increase in shipping costs.

For a full list of commercial and retail pricing, visit USPS’s website. 

The PRC will be reviewing the prices before they take effect on October 2nd, the complete Postal Service price filings with prices for all products can be found on the PRC website under the Daily Listings section at https://www.prc.gov/dockets/daily. You can find the price change tables at https://pe.usps.com/PriceChange/Index. 

The USPS’s “Delivering for America” 10-year plan aims to reverse a projected $160 billion in losses over the next 10 years. The Plan’s growth and efficiency initiatives will make $40 billion in capital investments over the next 10 years--including approximately $20 billion towards USPS’s processing network, facility upgrades, and procurement of new processing equipment.