USPS Rate Increases for 2022

We’ve arrived at that time of year once again. There’s no time like the present to start preparing for the oncoming USPS rate increases. We’re going to go over the changes made to the most popular USPS shipping services including Priority Mail, First Class Package, Flat Rate, and Regional Rate. 

These changes are scheduled to go into effect on January 9, 2022. SmartShyp will be updating all of our labels so the new USPS pricing will be automatically calculated. There is no need to do anything with your SmartShyp account. Consider adjusting your pricing strategy if you do offer free shipping, though, to accommodate the new costs. You could also plan out an info blast to inform your customers about the changes so that they are clear on why their shipping is increasing. 

2022 USPS Shipping Rate Increase Points of Interest:

• There is NO rate increase for First Class Mail services including letters, large envelopes or postcards in January 2022.
• There is a First Class Mail postage rate increase scheduled for July 2022.
• Starting this time next year (January 2023), all Mailing Services will undergo a scheduled postage rate increase twice a year in January and in July.

Priority Mail Express Flat Rate (Commercial Base)

INCREASE PER PACKAGE - 2021 vs. 2022 Rates

• Priority Mail Express Flat Rate Envelope are increasing $0.75 to $23.50 from $22.50.
• Priority Mail Express Legal Flat Rate Envelope are increasing $0.80 to $23.75 from $22.95.
• Priority Mail Express Padded Flat Rate Envelope are increasing $0.70 to $23.95 from $23.25.

Priority Mail Express (Commercial Base)

INCREASE PER PACKAGE - 2021 vs. 2022 Rates

Pricing for Priority Mail Express (Commercial Base) will increase by 4.3%. A 1 lb. package using Priority Mail Express increases $2.30, costing $42.15 in 2022 versus $39.85 (not including holiday surcharge) in 2021.

2022 Priority Mail Express Highlights

• Zone 8 rate changes are increasing significantly. A 1 lb. package traveling to Zone 8 will increase by $5.45 (5.8%)
• Packages weighing 5 lbs. or more traveling to Zone 5 or higher will increase by at least $2.55 (4.9%)
• The maximum discount for Commercial Base based pricing in comparison to Post Office (Retail) prices is staying the same as 2021 (16%)

Priority Mail (Commercial Base)

INCREASE PER PACKAGE - 2021 vs. 2022 Rates

Priority Mail will have an average increase of 2.7% (Commercial Base). A 1 lb. package using Priority Mail and traveling to Zone 8 will increase $0.88, costing $9.68 in 2022 versus $8.80 (not including holiday surcharges) in 2021.

2022 Priority Mail Rate Increase Highlights:

• Packages traveling to Zone 8 are increasing by at least $0.88 for all weights.
• Packages weighing 8 lbs. or more traveling to Zones 5 through 8 are decreasing significantly. As an example, a 20 lb. package traveling to Zone 8 is decreasing by $12.37 in 2022.
• Packages weighing 11 to 24 lbs. traveling to Zones 1&2 through 8 are decreasing between $0.40 (10 lbs., Zone 1&2) to $12.37 (20 lbs., Zone 8). 
• Rate increases for Zone 9 (U.S. territories) are increasing by 15%.
• The maximum Priority Mail Commercial Base discount compared to Post Office (Retail) prices is 30% (down from 40% in 2021).

Priority Mail Flat Rate (Commercial Base)

INCREASE PER PACKAGE - 2021 vs. 2022 Rates

Priority Mail Flat Rate products will see an increase in 2022. The Priority Mail Flat Rate Padded Envelope increases $0.45 to $8.45 in 2022 versus $8.00 (not including the holiday surcharge) in 2021. Priority Mail Medium Flat Rate Box rates will increase $0.50 to $14.25 from $13.75 currently. Large Flat Rate Box rates will decrease by $0.10, to $19.20 from $19.30 (not including the holiday surcharge) in 2021. 

2022 Priority Mail Flat Rate Increase Highlights:

• Priority Mail Small Flat Rate boxes are increasing only $0.35 (3.0%).
• Priority Mail Large Flat Rate Box is decreasing by $0.10 (-1.0%).

Priority Mail Regional Rate (Commercial Base)

INCREASE PER PACKAGE - 2021 vs. 2022 Rates

Priority Mail Regional Rate Boxes will see rate increases for all Zones for Box A in 2022. A 5 lb. package traveling to Zone 8 using the REgional Rate Box A will increase by $0.90 to $13.54 in 2022 compared to $12.64 (not including holiday surcharges) in 2021. Regional Rate Box A is priced at a 2 lb. regular Priority Mail rate, yet can contain products that weigh up to 15 lbs. 

2022 Priority Mail Regional Rate Increase Highlights:

• Regional Rate Box A is seeing price increases ranging from $0.54 to $3.00.
• Regional Rate Box B is seeing price increases ranging from a decrease of $0.89 to an increase of $1.04.
• Regional Rate Box A Zone 8 is increasing the highest value at $0.90 (7.1%).
• Zone 8 is seeing the highest increase at $0.90 (7.1%) for Regional Rate Box A.
• Rate increases in Zone 9 (U.S. territories) are increasing by $3.00 (12.8%) for Box A and $1.04 for Box B.

First Class Package Service (Commercial Base)

INCREASE PER PACKAGE - 2021 vs. 2022 Rates

First Class Package Service will see a 7.4% increase. A 15.999 ounce package for First Class Package Service going to Zone 8 increases from $0.30 to $6.28 in 2022 from $5.98 (not including holiday surcharges) in 2021.

2022 First Class Package Service Rate Increase Highlights:

• First Class Package Service is seeing rate increases range from $0.37 (11.0%) to $0.30 (5.0%).
• First Class Package Service is seeing higher rate increases in lower weights – the increase is as high as $0.36 (12.0%) packages that weigh 1 to 4 ounces.
• The maximum First Class Package Service Commercial Base discount compared to Post Office (Retail) prices is 26% (down from 28% in 2021).

To read the USPS announcement, click here.