USPS Postage and UPS Parcel Shipping Rate Hike July 2023.
Is Inflation the cause of the 2023 postage rate hike. Shipping costs will also increase in July 2023. In the United States, for example, the price of a first-class stamp has increased from 29 cents in 1995 to 63 cents in 2023. Shipping Parcels will also cost more. This is due to inflation, an increase in the cost of operations, inflationary pressures on wages, and shoring up losses.
The USPS also attempts to account for inflation when setting rates. The USPS has a rate-setting system that is designed to increase postal prices on an annual basis in order to account for inflation and other cost increases. This system helps the USPS remain financially viable by allowing it to keep up with rising costs.
For the second time this year, the USPS will be increasing postage rates in virtually all mail and package delivery categories.
Fortunately, there are methods by which you can reduce your postage or shipping cost. Chicago fulfillment services have special USPS approved software to help reduce marketing mail and fulfillment package costs. We also have relationships with the major shipping companies and offer discounted shipping rates.
The 2nd USPS proposed increase for 2023, which will take effect on July 9, will affect all classes of mail and packages, including First-Class Mail, Marketing Mail, Priority Mail, Express Mail, Parcels and others. The increases are not expected to be dramatic; however, they will add up over time and could significantly affect businesses that rely on direct mail for marketing or to ship products through e-Commerce sites.
The USPS also has a new pricing system called “Market-Dominant Pricing,” allowing the organization to adjust prices based on market demand. This means that prices for specific services will fluctuate depending on how much demand those services are at any given time. The USPS hopes this system will help.
In addition to the 2023 postage rate hike in January, the USPS is also increasing postage rates as of July 9, 2023. The average rate increase, depending on the level of service, is in the 6%-8% range.
The USPS hopes that by increasing postage rates, it will be able to cover the cost of operations and remain financially viable in the long term. However, businesses and individuals should be aware of these increases to ensure their budgets are not adversely affected.
Typically, both UPS and FedEx increase their package rates as well. These shippers offer services such as UPS SurePost and FedEx Ground Economy (formerly SmartPost); these services partner with the USPS so when the USPS increase rates, so do these partners. Although the packages or parcels are entered through and picked up by either UPS or FedEx trucks, they are delivered to the post office for last mile delivery to residential or business addresses.
Learn more about how you can achieve discounts on marketing mail and shipping your e-commerce store packages. Please call us at 773–657–9400 or contact us at [email protected] For a free estimate.