USPS temporary price hike to ding SMEs through Christmas

By Chris Dawson August 17, 2020 - 7:10 am

A USPS temporary price hike on parcels has been announced for businesses which will undoubtedly include marketplace SMEs. The planned prices, approved by the Governors of the Postal Service on the 6th of August, would raise prices on its commercial domestic competitive parcels – Priority Mail Express, Priority Mail, First-Class Package Service, Parcel Select, and Parcel Return Service.

The price hike is to kick in on the 18th of October and apply until the 27th of December 2020, and will apply to commercial parcels although consumer parcels (known as retail) won’t be impacted.

“This time-limited adjustment will increase prices for our commercial customers in line with competitive practices without impacting customers at the retail level. In doing this, the Postal Service is protecting the retail consumer during a vulnerable economic period while increasing prices on commercial volume during heightened volume levels.”

It will depend how you purchase your postage and the services you use whether the USPS temporary price hike will apply to your business. If you purchase postage at a Post Office then you’ll be paying retail rates, but if you purchase through a contract or many third party stamps providers then you’ll almost certainly be hit by the USPS temporary price hike.

Depending on the service, the USPS temporary price hike will be 24c, 40c or $1.50, although a few Parcel Select Ground rates will be charged less than $0.40 so as not to exceed USPS Retail Ground retail prices.

The changes are subject to approval by the US Postal Regulatory Commission. A full list of commercial pricing is available at

“The Governors believe these temporary rates will keep the Postal Service competitive while providing the agency with much needed revenue. The forecasted additional revenue from the time-limited increase will depend on the volume of packages shipped between Oct. 18 and Dec. 27 at commercial rates.”

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