US Postal Service Files Notice for Postage Rate Increases – August 2021


The Postal Regulatory Commission (PRC) is requesting price changes to take effect August 29, 2021. The percent increase is quite substantial — so you should budget accordingly. As fulfillment experts, we suggest you complete any promotional campaigns you can do prior to the rate increase, whether it’s direct mail or packages. It would certainly save your business money going into the fall advertising season.

Why are postage rate increases happening now?

The USPS is implementing a 10 year plan called Delivery for America to achieve financial sustainability and service excellence. The Postal Accountability and Enhancement Act (PAEA) of 2006 capped price increases for mailing services at the Consumer Price Index. In November 2020, the existing rate-setting system was deemed inadequate by the postal rate commission. The new ruling provides the USPS more rate authority when establishing prices for mailing services, providing the ability to adjust prices based on declining mail volumes and growing logistics costs. With full implementation, the Postal Service’s 10-year plan is designed to reverse a projected $160 billion in operating losses over the next 10 years.

In 2020, The Postal Service delivered approximately 129.2 billion pieces of mail and packages to customers located in every state and territory, county, city, town, and rural area in the nation.

The proposed mailing services price changes include:

Mailing Services Price Changes
Product Current Proposed
Stamps $0.55 $0.58
Flats Single Piece $1.00 $1.16
Package Services Price Changes
Product Current Proposed
Media Mail $3.71 $4.11
BPM Parcels and Flats $0.96 $1.03

Trust Fulco Fulfillment for all of your shipping and postage questions

Fulco Fulfillment advises clients on the most efficient ways to minimize shipping costs through smart packaging and streamlined order fulfillment operations. We know that shipping is one of the biggest costs in your budget, so we work closely with you to determine the most cost-effective shipping methods and rates. We are here to help you alleviate the impacts of the impending rate increases from the USPS as best as possible. Call us at 973-361-1700 or fill out or contact form — we’d love to answer your fulfillment questions.


Are USPS Postage Rates Going Up in 2020?


The United States Postal Service announced its proposed new price changes to take effect Jan. 26, 2020. While the price of a first-class stamp isn’t changing, the prices of flat-rate Priority Mail packages are going up across the board. The proposed prices, approved by the governors of the Postal Service, would raise the following rates 1.9%:

  • Overall 1st Class Postage
  • USPS Marketing Mail
  • Periodicals

The price of a First-Class Mail Forever stamp will not be increasing, it will remain at 55 cents. The single-piece letter additional ounce price would remain at 15 cents. Also unchanged would be the prices of postcard stamps at 35 cents and 1-ounce flats at $1.

Overall, Priority Mail and Priority Mail Express will increase 4.1% and 3.5% respectively, but those increases vary by Retail/Commercial, zone and weight.

This rate change for shipping products is timed similar to UPS® and FedEx®, who historically adjust prices each January. On January 6, 2020, FedEx raised prices an average of 4.9%.

The Postal Service, unlike some other shippers, does not add surcharges for fuel, residential delivery, or regular Saturday or holiday season delivery.

The proposed Mailing Services price changes include:

Mailing Services Price Changes

Product Current Proposed
Letters (1 oz.) 55 cents 55 cents
Letters additional ounces 15 cents 15 cents
Letters (metered 1 oz.) 50 cents 50 cents
Flats (1 oz.) $1 $1
Outbound International Letters (1 oz.) $1.15 $1.20
Domestic Postcards 35 cents 35 cents

Domestic Priority Mail Flat Rate Retail Price Changes

Product Current Proposed
Small Flat-Rate Box $7.90 $8.30
Medium Flat-Rate Box $14.35 $15.05
Large Flat-Rate Box $19.95 $21.10
APO/FPO Large Flat-Rate Box $18.45 $19.60
Regular Flat-Rate Envelope $7.35 $7.75
Legal Flat-Rate Envelope $7.65 $8.05
Padded Flat-Rate Envelope $8 $8.40

The PRC will review the prices before they are scheduled to take effect Jan. 26, 2020. The complete Postal Service price filings with prices for all products can be found on the PRC site under the Daily Listings section at prc.gov/dockets/daily. For the Mailing Services filing see Docket No. R2020-1. For the Shipping Services filing see Docket No. CP2020-5. The price change tables are also available on the Postal Service’s Postal Explorer website pe.usps.com/PriceChange/Index

Trust Fulco Fulfillment for all of your shipping and postage questions

Fulco Fulfillment advises clients on the most efficient ways to minimize shipping costs through smart packaging and streamlined order fulfillment operations. Call us at 973-361-1700, we’d love to answer your fulfillment questions.