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

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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.