Featured Image for The 2016 USPS Rate Increase – What You Need To Know

The 2016 USPS Rate Increase – What You Need To Know

As you might be aware, the United States Postal Service has recently increased their delivery rates for many types of packages. The increase is noteworthy as the USPS has recently been making a concerted effort USPSto draw customers away from their competitors – largely based on the concept of offering a better deal. It seems the USPS is now bucking the trend by increasing rates by more than the industry average.

Of course, it’s not out of the ordinary for parcel carriers to push their rates up – in fact, most do by an average of 3-5% each year. However, this latest USPS rate increase goes a lot further than that average. The average price of shipping with USPS has now gone up by 9.5%, from $5.02 to $5.50. This is no small amount and will certainly add up for shippers over time. Priority Mail is going up by an average 9.8%, and Priority Mail Express goes even further, rising by a hefty 15.6%.

However, it’s not all bad news. Along with their prices, the USPS is also increasing the maximum weight for a first class package, from 12.99 oz to 15.99 oz – meaning you do get more for your money overall. Furthermore, they are also simplifying their light-weight package prices, charging a flat fee of $2.60 for all first class packages under 8 oz.

These aren’t the only changes the USPS is making to its services. From now on, Standard Post will be renamed Retail Ground, as part of their latest re-branding effort. They are also making changes to their Click ‘n Ship online label printing service, as it will no longer use a commercial base pricing discount. The effect of their changes won’t just be felt by USPS customers – many other service providers will also increase their rates in response to USPS’s actions, so almost everyone will be affected.

Even with the large increase in prices, USPS is still an excellent choice and offers several more cost effective solutions than its main competitors, UPS and FedEx. Nevertheless, it’s important to review the impact of the rate changes for yourself and consider the impact now that the changes are in effect.

Interested in a free consultation on your shipping? Click Here to talk to one of our experts.