
The cost of sending packages by Media Mail will rise by an average of 4.4% on January 22, 2023. Post Office box rentals will rise by 4.5%, and the cost of a First Class stamp will rise 5% to 63 cents.
The USPS filed its proposed Market Dominant rates increases with the Postal Regulatory Commission on October 7, 2022, which usually gives proforma approval.
So what about changes to First Class Package Service? FCPS was moved from Market Dominant to Competitive class - expect to see another filing by the USPS soon detailing its plans for Competitive rates, which includes Priority Mail and other package services. (The USPS published a "pre-decisional" filing that proposed eliminating Priority Mail Regional Rate boxes and restructuring postal zones, as
we reported last month.)
In today's filing, the
USPS also revealed the price of sending a domestic postcard will increase to 48 cents on January 22nd, and a 1-ounce letter mailed to another country will increase to $1.45.
Also seeing fee hikes in January: Certified Mail and money order fees.
The rate hikes come despite massive financial relief from Congress in 2022. In a
press release, the USPS said the proposed increases would raise First-Class Mail prices approximately 4.2 percent "to offset the rise in inflation" and noted that the price changes had been approved by the Governors of the US Postal Service.
And in its "Notice of Market-dominant price change" notice to the PRC on Friday, the USPS justified using virtually all of its authority to raise rates:
"The Postal Service has available approximately 4.2 percentage points of pricing authority for each class. The Governors have determined to use virtually all of this authority. The Postal Service’s Delivering for America plan sets forth a balanced array of initiatives to achieve financial sustainability and service excellence, and price cases are an integral component of that plan."
Where the USPS used to raise rates annually, it now raises rates twice a year. When factoring in the so-called "temporary" holiday rates, the USPS in actuality raises rates 3 times a year. The 2022 holiday rates went into effect on October 2 and run through January 22, 2023.
No mention of higher shipping costs would be complete without reminding readers of the painful fact that sellers will pay higher payment-processing fees as a result - and on eBay and Etsy, they will pay higher commission fees as well.