USPS Price Increase - Effective July 9th 2023
On April 10th, 2023, the United States Postal Service filed notice with the Postal Regulatory Commission (PRC) of Mailing Services price changes. This filing was followed with another notice on May 10th, 2023, of Shipping Services price changes. These price changes, which include the launch of USPS Ground Advantage™ service and USPS Ground Advantage Return service, took effect July 9th, 2023.
USPS Ground Advantage™ and USPS Ground Advantage Return are launching with this price change. See USPS Ground Advantage™ for information on the service. The following services are being merged into the new services:
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As operating expenses fueled by inflation continue to rise and the effects of a previously defective pricing model are still being felt, these price adjustments are needed to provide the Postal Service with much needed revenue to achieve the financial stability sought by its Delivering for America 10-year plan. The prices of the U.S. Postal Service remain among the most affordable in the world.
Frequently Asked Questions
What is happening to the prices?
The Postal Service is asking the PRC to review prices with some Shipping Services. The rate change request is part of balanced approach under “Delivering for America,” the Postal Service’s 10-year plan for achieving financial sustainability and service excellence. Shipping Services prices are primarily adjusted according to market conditions. The Governors believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue. Even with proposed rate increases, USPS prices will remain among the world’s most affordable and a great value in shipping.
When will the change take place?
The change is expected to take effect July 9, 2023.
Why are the prices changing?
As part of its 10-year plan to achieve financial sustainability and service excellence, the Postal Service is asking the Postal Regulatory Commission (PRC) to review proposed increases to some of its prices of shipping services.
The new rates – if favorably reviewed by the PRC – for our shipping service products, will keep the Postal Service competitive while providing the agency with needed revenue.
Even with postage rate increases, USPS prices will remain among the world’s most affordable and offers a great value in shipping.
How will this change help the Postal Service?
The rate change request is part of balanced approach under “Delivering for America,” the Postal Service’s 10-year plan for achieving financial sustainability and service excellence. With full implementation, the 10-year plan reverses a projected $160 billion in losses over the next 10 years.
Has the Postal Service been losing money on package delivery like it has on mail?
According to the Postal Accountability and Enhancement Act (PAEA) of 2006, competitive rates set by the Postal Service are required to cover all of their own costs plus an appropriate share of overhead. These rates are in compliance with that act.
Do you expect to raise shipping rates again in 2023?
We’re continually reviewing our pricing approach for all products.
As a result of the Plan, will the public have to pay higher rates for slower package service?
The Plan enables reliable and predictable service to our customers and proposes a fair pricing approach that aligns to market realities. We are pursuing a rational pricing approach, adjusted according to market conditions. The Plan will enable us to design a precise and efficient processing and transportation network, positioning us to deliver 95 percent of all mail and packages on-time. Judicious price increases paired with investment in our network will allow us to provide the predictable, reliable service that the American people expect and deserve and ensure the financial sustainability of the Postal Service.
Information provided by USPS Newsroom - about.usps.com