All Things Shipping | Oct 17, 2018

2019 USPS Postage Rate Changes: What Do Retailers Need to Know?

Michelle McNamara

Shippo’s USPS rates are up to 90 percent cheaper than Retail rates. Want the complete list of Shippo’s 2019 USPS rates? You can download the charts here

Last week, the U.S. Postal Service announced its 2019 rate change proposal. If favorably reviewed by the Postal Regulatory Commission (PRC)—which is highly likely—the approved changes will take effect January 27, 2019. Online retailers around the world are tuning in to see how these proposed changes will impact them. Here’s a brief overview of the 2019 USPS rate changes, including the impact on Priority Mail, First-Class Package Service, and International service levels.

2019 USPS Postage Rate Change Highlights

Some of the noteworthy changes to the USPS shipping rates include:

  • Priority Mail Express will increase an average of 3.9 percent.
  • Priority Mail will increase an average of 5.9 percent.
  • The Dimensional Divisor for Priority Mail is being reduced to 166 and will now include all zones. Lowering the Divisor means that larger packages will receive a “heavier” Dimensional Weight, which will increase the rate charged.  
  • First-Class Package Service, an affordable service level for packages weighing less than 16 ounces, will move to zone-based pricing to better align with the cost of service and improve value based on distance.

2019 USPS International Postage Rate Change Highlights

Our partners at Shipware provide a detailed analysis of the USPS 2019 postage rate changes. The team includes the average International rate change by service level, such as the following for Commercial rates:

  • Expedited Global Express Guaranteed (GXG) +4.9%
  • Priority Mail Express International (PMEI) +3.9%
  • Priority Mail International (PMI) +3.9%
  • First Class Package International Service (FCPIS) +3.9%

The big question is: how will these changes impact your business? To look up specific price examples by weight and zone, you can view a comprehensive list of the new USPS Retail and Commercial prices here.

It’s worth noting that although the USPS is raising many of its rates, it’s still an affordable option for lightweight packages travelling to residential addresses. The USPS does not add surcharges for fuel, residential delivery, regular Saturday delivery, or holiday “peak” season delivery.

Check out our new post sharing the 2019 USPS postage rate charts and analyzing what these changes mean for your business.

Michelle McNamara is a Senior Marketing Manager at Shippo

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