On August 10, 2022, the United States Postal Service (USPS) announced a planned postage rate increase for this year’s holiday season. Read on to learn how the increase would affect you, why the price hike has been proposed, and how you can combat USPS postage rate increases in the future.
Earlier this year, the USPS implemented a price increase on July 10. Now, the U.S. Postal Service plans to raise prices again this year during the holiday season (October 2022 - January 2023).
The Governors of the Postal Service have already approved the planned temporary peak-season pricing on August 9. The proposed price hike is now with the Postal Regulatory Commission (PRC) for review. Pending a favorable review by the PRC, the temporary price hike would go into effect at 12 a.m. Central on October 2, 2022, and will remain in place until 12 a.m. Central on January 22, 2023.
If approved, the holiday price hike will affect prices on the following commercial and retail domestic competitive parcels:
One positive about the temporary price hike is that international products will not be affected.
Like the previous price hike earlier this year, the Postal Service explains that the temporary rate increase will keep USPS on track with its 10-year plan, Delivering for America. Delivering for America is the initiative to return the USPS to financial stability and reverse about $160 billion in operating losses. The rate adjustment is also touted as a way to keep USPS competitive while providing the agency with the revenue to cover extra costs in anticipation of peak-season volume.
In 2022, we will have experienced two postage rate increases from the Postal Service, and with their 10-year initiative and rising inflation, these price hikes will most likely continue.
To combat the price increases from USPS, a solution that can help lower your USPS shipping rates is discounted shipping software. Shipping software like Zenventory saves you money by getting you access to the lowest cost commercial rates with USPS. These discounted prices can be up to 40% off the retail price.
Click here to learn more about how shipping software can help you.