The proposed new postage rates by the U.S. Postal Service (USPS) are going to be implemented on Sunday, January 21, 2018.
The USPS filed a notice to increase the price of mail services with the Postal Regulatory Commission (PRC) in October 2017, with the implementation slated for January 2018. Come Sunday, regular mail, as well as shipping services, will be affected by the price hike.
The cost of shipping has become a significant expenditure since the arrival of online commerce. For many small businesses looking to compete with large companies offering free shipping, even the slightest increase will hurt the bottom line.
When the USPS announced the increase, it said Mailing Services product prices would go up by around 1.9 percent, and most Shipping Services products would see an average increase of 3.9 percent. Domestic and international shipping products will also see an increase, including Priority Mail Express, Priority Mail and Parcel Select.
Sunday, January 21, 2018 USPS Postage Rate Changes
Starting on Sunday, First-Class Mail letters up to one ounce will increase from $0.49 to $0.50. The price for each additional ounce will remain at 21 cents. Metered letters and domestic postcards will go up by one cent from 46 to 47 cents and from 34 to 35 cents respectively.
Priority Mail Flat Rate prices will go up by five cents across the board:
- Flat Rate Envelope – $6.65 to $6.70
- Legal Flat Rate Envelope – $6.95 to $7.00
- Padded Flat Rate Envelope – $7.20 to $7.25
- Small Flat Rate Boxes – $7.15 to $7.20
- Medium Flat Rate Boxes – $13.60 to $13.65
- Large Flat Rate Boxes – $18.85 to $18.90
The price for retail Priority Mail Express will go up by 3.9 percent, while Priority Mail Express Commercial Base and Plus will see a 3.7 percent increase.
If your business uses Priority Mail, Priority Mail Express or First-Class Package Service you might be eligible to get discounts over the retail rates. Contact your local USPS office to see if you qualify and see what kind of deals you can get. The discount you get will depend on the volume you ship, which will let you negotiate a better rate.
If you want to take a look at the proposed changes, you can go here to learn more. The information gets posted on the day it takes effect, so you have to wait until January 21, 2018. However, you can go to October 6, 2017, on the calendar and see Docket No. R2018-1 for Mailing Services and Docket No. CP2018-8 for Shipping Services.
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This article, “New USPS Postage Rates Go Into Effect on January 21” was first published on Small Business Trends