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All Things Shipping | Nov 18, 2020

A Quick Guide to Upcoming 2021 USPS Postage Rate Changes

A Quick Guide to Upcoming 2021 USPS Postage Rate Changes

This week, the United States Postal Service filed its planned rate increases for 2021 with the Postal Regulatory Commission. If approved by the PRC, the new rates would take effect on January 24, 2021. To help businesses break down these new changes and plan ahead for the coming year, we’ve included some highlights for some of the most popular USPS service levels such as Priority Mail®, First Class Package Service®, Priority Mail Express®, and more. 

First, besides the upcoming rate increases, are there any other changes coming?

A $100 charge will be imposed on packages found in the mailstream that surpass the maximum size limitations of 130 inches (combined length and girth). 

When do the new USPS rates take effect?

The new USPS rates will kick in on January 24, 2021.

What are the average increases for the most common USPS service levels?

Here’s a breakdown of the average increases for popular USPS service levels. 

 USPS Service Level  2021 Average Price Increase: Shippo Rates* 
 First Class Package Service 6.5%
Priority Mail 4.5%
Priority Mail Express 2.5%
Parcel Select Ground 1.3%

*Shippo rates reflect USPS Commercial Plus pricing, which offers the best-possible USPS rates. These rates are available for all Shippo customers—with no volume minimums or coding requirements. 

But, even though rates will be going up for most USPS service levels, Shippo rates will still be substantially less than retail rates. 

Here are a couple of examples of how much you’ll save by using Shippo: 

Priority Mail (after the January 2021 price increases): 14.1% average savings 

Priority Mail Express (after the January 2021 price increases): 14.1% average savings

Plus, deep discounts across the board on other USPS service levels. 

Benefits of Using the USPS
Even with these new increases, the USPS remains an extremely economical and efficient solution, offering businesses of all sizes reliable and flexible shipping solutions, plus a variety of benefits.

Benefits include:
• Delivery to virtually every U.S. address
• No fuel surcharges
• No residential delivery surcharges
• Free Saturday delivery
• Free scheduled pickups
• Free shipping supplies
• And more

We’ll be reporting back with a detailed analysis of the new rates and a downloadable guide with our rate tables. In the meantime, if you’d like to get a quick look at our current discounted USPS rates—up to 90% off retail rates—available through Shippo, check out our USPS postage calculator

Jim Kazliner is Shippo's Content Lead and Editor-in-Chief. His background spans business, retail, financial, and automotive sectors, as well as music and film journalism. When not spinning yarns on his long-suffering laptop, you’ll find him collecting vintage vinyl and obscure BMX bike parts.

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