USPS Rates Go Up Again

e-commerceUSPS is increasing postal rates on Jan. 17. Priority Mail fees will rise about 9.8 percent, despite USPS touting its allegiance to e-commerce marketers who are infusing USPS with package delivery revenue as First Class mail volume plummets.

First Class mail rates will remain the same.

“The postal service may implement its planned price changes as scheduled,” reads the order from the Postal Regulatory Commission allowing the USPS changes (Opens as a PDF).

The package price increases happen after what USPS said on Nov. 5 will be a 15.5-billion-mail-piece holiday season for the postal service alone.

The 212-page order, time-stamped at nearly 2:37 p.m. on Friday, includes the chart pictured below.

On Monday, Ina Steiner of published comments from a few affected e-commerce marketers.

“Mitch Goldstone, CEO of ScanMyPhotos in Irvine, California,” Steiner writes, “credits the flat rate Priority Mail box with inventing his entire business, and said so in a USPS video last year. But Goldstone pointed to a 10 percent increase in his costs under new rates taking effect in January, telling EcommerceBytes they jeopardize the benefit of the USPS partnership and threaten his business model.”

Another e-commerce marketer tells Steiner his costs will go up 23.5 percent.

“Ross Gordon, CEO of subscription-commerce site,” Steiner says, “told EcommerceBytes … each month, his company sends its tens of thousands of customers a package of fishing products using the Parcel Select Lightweight class of mail. His packages weigh between 12 and 15 ounces.”

In its request for the increase, USPS said why the price rise should happen (opens as a PDF).

“The changes we establish should enable each competitive product to cover its attributable costs,” USPS told the PRC.

USPS didn’t return Target Marketing’s request for comment on Monday.

What do e-commerce marketers think of this rate increase?

Please respond in the comments section below.

Heather Fletcher is senior content editor with Target Marketing.
Publish date: November 17, 2015 © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT