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USPS Price Increase

By Last updated on: January 16, 2020

USPS has some of the lowest postage rates and offers a great value in shipping. Just as FedEx and UPS, the USPS price increase can be expected each year. Here at Refund Retriever, we audit FedEx and UPS shipments for late deliveries and other billing mistakes. As a result, the majority of our clients also use some USPS package services.

USPS 2020 Postage Rate Increase

Effective January 26, 2020, new USPS postal rates will go into effect. Priority express retail rates will increase by 3.8%, but commercial base rates only increase on average 2.2%. Priority retail rates will increase by 4.1% on average. Conversely, priority mail commercial base rates will only rise by 2.8% in 2020. In particular, the larger price increases will affect packages weighing 10 lbs. or greater.

As a result, the majority of our customers also need to understand the USPS price increases. Unlike FedEx and UPS, the Postal Service does not add surcharges for fuel, residential delivery, Saturday delivery fees or peak-season delivery.

Domestic Mail Increase

Priority Mail Increases201820192020
Small Flat Rate Box (Priority)$7.20$7.90$8.30
Medium Flat Rate Box (Priority)$13.65$14.35$15.05
Large Flat Rate Box (Priority)$18.90$19.95$21.10
Flat Rate Envelope (Priority)$6.70$7.35$7.75
Padded Flat Rate Envelope (Priority)$7.25$8.00$8.40
Flat Rate Envelope (Express)$21.98$22.68$22.75
Legal Flat Rate Envelope (Express)$22.09$22.80$22.95
Padded Flat Rate Envelope (Express)$22.46$23.18$23.25

2019 USPS Rate Changes

  • Parcel Select Ground – average rate decrease of 1.3%
    • 193 Dimensional Weight (DIM) divisor for Parcel Select Ground packages over 1 cubic foot
  • First-Class Package Service – an average rate increase of 11.9%
    • Zone-based pricing for First-Class Package Service
  • USPS Priority Mail – an average rate price increase of 5.9%
    • Effective June 23, 2019 –
      • Dimensional Weight (DIM) divisor for Priority Mail packages over 1 cubic foot (1728 cubic inches) is being adjusted from 194 to 166
      • Priority Mail parcels in all shipping zones will now receive DIM pricing for packages over 1 cubic foot. 
  • Priority Mail Express – overall rate increase of 3.9%
    • DIM Divisor for Priority Mail Express packages over 1 cubic foot (1728 cubic inches) from 194 to 166
  • USPS Media Mail – rates price increase of 2.9%

First Class Mail Prices

First Class Mail Increases 2018 2019 2020
Letters (1 oz.) 50 cents55 cents55 cents
Letters additional ounces 21 cents15 cents15 cents
Metered Letters (1 oz.) 47 cents 50 cents50 cents
Domestic Postcards   35 cents 35 cents35 cents

2019: 5-cent increase in the price of a forever stamp, from 50 cents to 55 cents. Forever stamps were created in 2007.

USPS Stamp Increase

2019 increase is the largest USPS price increase in the 1-oz stamp by percentage since 1991.

International Mail Price Increase

  • Outbound International Letter (1oz) – increase from $1.15 to $1.20 in 2020
  • Priority Mail Express International – an average rate increase of 3.9% in 2019.
  • Priority Mail International – an average rate increase of 6.2% in 2019.
  • First-Class Package International Service – an average rate increase of 3.9% in 2019.

The US Postal Service receives no tax dollars for normal operating expenses. USPS relies on the sale of postage, products, and services to fund its operations and growth. The Postal Service lost $3.9 billion in 2018. Consequently, 2018 was the 12th year in a row the USPS reported a loss despite growth in package shipping.

Brian Gibbs

Author Brian Gibbs

More posts by Brian Gibbs

Brian Gibbs | President of Refund Retriever

Brian Gibbs founded Refund Retriever in 2006 while running his first eBay based business and seeing the shortcomings of other shipment auditing companies. Refund Retriever's primary focus is FedEx and UPS parcel invoice auditing. After graduating from Texas A&M University in 2001, he then graduated from the University of Houston in 2004 with a JD and MBA. Gibbs has been featured in Forbes, Entrepreneur and other publications discussing parcel auditing, shipping, e-commerce and more. Learn more at www.refundretriever.com or call (800) 441-8085 for more information.

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