Three Key Takeaways from the 2020 USPS Postal Rate Announcement
October 15, 2019
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Prepare your business and find out what rates are changing in the New Year
Great news for mailers! The USPS® is keeping stamp prices the same this year. However, you will see increases to Priority Mail® and Priority Mail Express®. Read below for all three significant takeaways!
This past week, on October 9, the USPS announced proposed changes to their mailing and shipping rates. If approved by the Postal Regulatory Committee (PRC), These changes will go into effect on January 26, 2020.
What Is Rate Change?
If you are unfamiliar with rate change or have just forgotten from last year, here is a quick refresher:
Every year the United States Postal Service (USPS) files proposed changes to their mailing and shipping rates with the PRC.
These changes usually go into effect in January of the new year
These rates are not arbitrary, mailing rate increases are based on the Consumer Price Index, and shipping rate increases are adjusted according to market conditions, aka to compete with other carriers such as UPS and FedEx.
What Are 3 Things I Should Know?
We know you are busy, so here are three key things to know about this rate change:
1. The First-Class Mail® rates are staying the same
Rate change will be a breeze for mailers this year. Most of the First-Class Mail® prices will be staying the same, including letters, metered letters, postcards, and flats. We've listed below the top items people are sending and how they are changing - and staying the same!
The proposed mailing service price changes
Letters (1 oz.) - 55 cents (2019) - 55 cents (2020)
Letters additional ounces - 15 cents (2019) - 15 cents (2020)
Letters (metered 1 oz.) - 50 cents (2019) - 50 cents (2020)
Flats (1 oz.) - $1 (2019) - $1 (2020)
Domestic Postcards - 35 cents (2019) - 35 cents (2020)
2. Priority Mail® rates are going up by 4.1%
The most popular USPS service is increasing slightly more than last year's average 3.9% increase. These prices are adjusted to market conditions and are meant to compete with the UPS®, FedEx®, and others. Priority Mail is still a great value to shippers, and one of the main reasons is that the Postal Service does not add surcharges for fuel, residential delivery, or regular Saturday or holiday season delivery. We've highlighted some of the main changes below to flat-rate Priority Mail Boxes.
The proposed Priority Mail service price changes
Small Flat-Rate Box - $7.90 (2019) - $8.30 (2020)
Medium Flat-Rate Box - $14.35 (2019) - $15.05 (2020)
Large Flat-Rate Box - $19.95 (2019) - $21.10 (2020)
APO/FPO Large Flat-Rate Box - $18.45 (2019) - $19.60 (2020)
Regular Flat-Rate Envelope - $7.35 (2019) - $7.75 (2020)
Legal Flat-Rate Envelope - $7.65 (2019) - $8.05 (2020)
Padded Flat-Rate Envelope - $8.00 (2019) - $8.40 (2020)
3. Priority Mail Express® rates are increasing by 3.5%
Priority Mail Express guarantees delivery of your packages 365 days a year. Like Priority Mail, you can send items in flat rate boxes or your packaging. This service is increasing a bit this upcoming year, but it still is one of the most affordable express services with prices that will start at $26.35.
The proposed Priority Mail Express service price changes
Flat Rate Envelope - $22.68 (2019) - $26.35 (2020)
Legal Flat-Rate Envelope - $22.80 (2019) - $26.50 (2020)
Padded Flat-Rate Envelope - $23.18 (2019) - $26.95 (2020)
For the full and complete list of the proposed changes, you can visit the USPS resource center. If you have any rate change questions, please contact your Neopost representative or write your questions below in the comments section!
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