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Mon Apr 10 2023 16:08:19

It's Official: USPS to Raise Rates Again in July

By: Ina Steiner

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The USPS will raise rates in July, citing inflation and a "previously defective pricing model." The Postal Regulatory Commission (PRC) will review the rates, which, if approved, would raise First Class Mail by approximately 5.4% since it last raised rates in January.

Rates for Media Mail and Library Mail will rise by 7.4%. Money Orders will increase by 15.7%, and Post Office Box Service will increase by 4.2%.

Because the USPS now raises rates twice a year,* those percentages don't show the full impact of rate changes - they are 6-month comparisons, not year-over-year comparisons.

For example, the cost of a stamp will rise 4.8%, from 63 cents to 66 cents. But last year, the USPS raised the cost of a stamp from 58 cents to 60 cents on July 10, 2022 - meaning the new price is a 10% increase year-over-year. (In July 2023, it will cost nearly 14% more to mail a letter compared to the cost in June of 2022.)

It's not lost on marketplace sellers that a rise in shipping is a rise in fees on sites like eBay and Etsy, which factor shipping costs into their selling fees.

The USPS is restricted in how much it can raise Market Dominant rates (though not as much as it used to be), and it noted in today's filing that the Governors of the US Postal Service used "virtually all of the pricing authority available to it."

The USPS also noted in the filing with the PRC that First-Class Mail is the highest revenue-generating mail class, accounting for $24.2 billion, or 30.7%, of the $78.8 billion in total revenue in Fiscal Year 2022.

As it had last year, the USPS filed its July prices for Market Dominant services first. Look for the other shoe to drop next month when the USPS will announce higher rates for Competitive services, which includes Priority Mail and First Class Package Service (to be renamed "USPS Ground Advantage" on July 9th).

The new rates will take effect on July 9, 2023, you can find the details on the PRC website.

*The USPS actually raises rates three times a year - each October through January, it puts in place "temporary" surcharge rates that last 3 and a half months.

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Perminate Link for It's Official: USPS to Raise Rates Again in July   It's Official: USPS to Raise Rates Again in July

by: Rogue This user has validated their user name.

Thu Apr 13 04:43:10 2023

🤨DeJoy’s financial disclosure forms show that the postmaster general had at least $30 to $75 million invested in XPO, a shipping logistics company that contracts with USPS and, critics have noted, could potentially financially benefit if USPS were to be privatized.
🤑$386 million. That’s the amount that XPO has been paid by the U.S. Postal Service since 2014
🤔DeJoy’s financial portfolio that could be problematic, including reported stock options in Amazon and 13 other shipping companys

SO OF COURSE THEYL TRY RAISING THE SHIPPING COSTS AS MUCH & AS OFTEN AS THEY CAN‼️

Perminate Link for It's Official: USPS to Raise Rates Again in July   It's Official: USPS to Raise Rates Again in July

by: Chicago48 This user has validated their user name.

Thu Apr 13 05:46:10 2023

Hello Temu.  I just received a $52 order from Temu (Chinese Amazon) and they charged NO shipping.  TEMU is taking over a lot of the market from AMZ and WM because of  fees.   Plus FREE returns.
IMO my slowing sales is due to the high shipping rates and fees.  When the customer goes to checkout the amount has doubled, so they backoff.  I do the same thing when I see high shipping rates.

Perminate Link for It's Official: USPS to Raise Rates Again in July   It's Official: USPS to Raise Rates Again in July

by: Mark4 This user has validated their user name.

Thu Apr 13 06:37:53 2023

USPS has already priced themselves out of the market, we haven't shipped one priority mail package in 9 months, all have been less expensive (and better service) with UPS> As it stands right now we have 5 USPS packages sitting for over a week in the Lehigh Valley Sorting Center as that sorting center is a complete disaster. USPS = higher rates and worse service.  

Perminate Link for It's Official: USPS to Raise Rates Again in July   It's Official: USPS to Raise Rates Again in July

by: Whatever This user has validated their user name.

Thu Apr 13 08:36:50 2023

so my first class package of 4 oz will be going up 3 cents?

Perminate Link for It's Official: USPS to Raise Rates Again in July   It's Official: USPS to Raise Rates Again in July

by: terry55 This user has validated their user name.

Thu Apr 13 09:32:41 2023

@whatever
I charge $4.50 for 1st class 4 oz, so my rate will go up $.27 and my 15oz boxes will go up $.47 at the 6% rate increase, plus ebay's shipping fee. Doesn't sound like alot but then multiply that by 300-500 packages a month

Perminate Link for It's Official: USPS to Raise Rates Again in July   It's Official: USPS to Raise Rates Again in July

This user has validated their user name. by: iheartjacksparrow

Thu Apr 13 10:06:29 2023

@Marie - Maybe I didn't do a good job of explaining myself. When the January 2022 increase went into effect, I charged $4.60 to mail an eight-ounce First Class Mail Package. When the October 2022 "holiday" pricing began, I had to charge $5.00 for the same service. And then when the January 2023 increase began, I lowered the price of the same service to $4.90. I'm just trying to point out that for me, the January 2022 versus January 2023 change was less than the January 2022 versus October 2022 change.

Perminate Link for It's Official: USPS to Raise Rates Again in July   It's Official: USPS to Raise Rates Again in July

by: Topaz This user has validated their user name.

Thu Apr 13 10:28:53 2023

I believe in the future we will be dropping off our packages to stores called Ship with Amazon. The infrastructure is there. I'm now receiving Amazon purchased items delivered the same day only hours after placing an order. Etsy and eBay may be sales competition to Amazon, but there's money to be made in moving packages.

Perminate Link for It's Official: USPS to Raise Rates Again in July   It's Official: USPS to Raise Rates Again in July

by: Marie This user has validated their user name.

Thu Apr 13 13:50:12 2023

@Jack

As far as I'm concerned you explained it fine.  Or at least I understood you.  But what I said earlier still stands.  In 2022 we experienced 3 rate increases.  January, July and October.  We all had to deal with them as they rolled out.  They all represented increases to the cost of shipping in 2022 and had to be dealt with.

Moving onto the next year, if the January 2023 rate changes allowed you to decrease what you charge to your buyers is terrific, but there were still more increases in that rate change, so it will depend on what method of shipment you are using within USPS.

I think it is great that you were able to reduce your rates coming into 2023.  The same is just not true for many of us, but again it is terrific that it worked out that way for you and likely others.

Perminate Link for It's Official: USPS to Raise Rates Again in July   It's Official: USPS to Raise Rates Again in July

This user has validated their user name. by: Working It

Thu Apr 13 15:23:47 2023

Other then First Class packages, I've been shipping using UPS Ground for almost all packages for a couple of years now. The only items I've sent Priority Mail have been those that fit into the Small Flat Rate box, or the Padded Flat Rate Envelope. I had one Priority package that went back and forth between distribution facilities for nearly 2 weeks, while my customer was anxious to get their product. That has never happened with UPS (knock wood).  
Depending on how this new ''USPS Ground Advantage'' is priced and organized, there may be even more business going to UPS, or FedEx.

Unfortunately, I also had to stop shipping those items to AK, HI and APO addresses, but I rarely sold to those locations, anyway.  

Perminate Link for It's Official: USPS to Raise Rates Again in July   It's Official: USPS to Raise Rates Again in July

This user has validated their user name. by: iheartjacksparrow

Thu Apr 13 16:13:45 2023

@Marie - The July 2022 increase was only related to First Class Stamps, flats, metered mail, First Class International, Media Mail, and some services like certified mail. I would think that the majority of online sellers would not have been affected by the July 2022 increase since it didn't change First Class Package or Priority Mail rates. I know I didn't adjust any of my shipping amounts last July.

Perminate Link for It's Official: USPS to Raise Rates Again in July   It's Official: USPS to Raise Rates Again in July

This user has validated their user name. by: Working It

Thu Apr 13 17:24:17 2023

I think Media Mail has been hit with all of the increases. It seems that it's about 60% higher than it was 3 years ago, or maybe 4 years ago.  

Perminate Link for It's Official: USPS to Raise Rates Again in July   It's Official: USPS to Raise Rates Again in July

by: Marie This user has validated their user name.

Fri Apr 14 00:32:38 2023

@Jack

All important methods that many sellers use.  So to downplay their importance really isn't fair to many sellers.

As I've said both of my other posts, I'm glad you weren't hit hard.  I think that is terrific and I'm sincere about that.  However that does not mean I dismiss all the sellers that didn't now weather the increases so well.

Perminate Link for It's Official: USPS to Raise Rates Again in July   It's Official: USPS to Raise Rates Again in July

by: Snapped This user has validated their user name.

Fri Apr 14 06:37:12 2023

“… in the future we will be dropping off our packages to stores called Ship with Amazon. ”

Not likely.  Almost 25% or USPS domestic package delivery are Amazon parcels.  And nearly 40% of UPS parcels they delivery are UPS.

Neither of these entities has anywhere near the infrastructure or ability to cost effectively deliver that volume themselves.  And then of course, they ONLY deliver packages.  

Perminate Link for It's Official: USPS to Raise Rates Again in July   It's Official: USPS to Raise Rates Again in July

by: BatmanOfOz This user has validated their user name.

Sun Apr 16 01:51:34 2023

WHAT A RACKET!  A Government entity that TAKES Billions from US to Exist...then Charges Us for its Horrible Service!!
I no longer sell on ebay...all of my bills are paid online. I have a roll of 'forever' stamps for the occasional card or letter.
A shame that all of my stock is now boxed up and no longer available to the world...but the loss in money (and the joy I Once had in Sharing my time in The Biz with the world!) is worth my Sanity!

Perminate Link for It's Official: USPS to Raise Rates Again in July   It's Official: USPS to Raise Rates Again in July

by: Real Patriot? This user has validated their user name.

Wed Apr 19 09:06:24 2023

The handpicked postmaster LaJoy is right on schedule to privatize the USPS by ruining it. What's next, selling the Lincoln Memorial to Putin's russia?  

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