USPS Announces July Rate Changes, Part 2: Shipping Rates

As expected, the USPS followed up last month’s announcement of a July rate increase for “dominant” services (including First Class Mail) with part two: rates for “competitive” services.

No price changes are being made in July for Priority Mail Express, Priority Mail, Domestic Extra Services, or the majority of International Products (some International Ancillary Services will receive a price change for July). On average, Parcel Select prices as a whole will increase 1.4%, according to today’s USPS filing with the PRC.

What is also changing: the rollout of USPS Ground Advantage, which the USPS painted today as “simpler, reliable and more affordable.”

As we reported in February, the USPS announced it would consolidate First Class Package Service, USPS Retail Ground, and Parcel Select Ground under the new branding: “USPS Ground Advantage,” featuring two-to five day service standards for packages weighing up to 70 pounds – including parcels weighing up to 15.999 ounces.

At the time, FreightWaves explained, “The product is aimed at shippers willing to sacrifice speed for price. It is also intended for users of the Postal Service’s Priority Mail service, who need two- to three-day transit times but don’t want to pay Priority Mail’s pound-based prices.”

In announcing today the availability of USPS Ground Advantage beginning July 9th, the Postal Service said published prices for USPS Ground Advantage would decrease 1.4% compared with current Parcel Select Ground and First-Class Package Service pricing. Retail prices will decrease 3.2%, and Commercial prices will decrease 0.7%.

On a page on its website, the USPS described the following Features & Benefits of the new USPS Ground Advantage offering:

• Packages delivered in 2–5 business days.
• Best-priced service for items up to 15.999 oz, based on weight (rounded up to 4 oz, 8 oz, 12 oz, and 15.999 oz) and zone (distance).
• Packages greater than 15.999 oz are charged by the pound up to 70 lbs (rounded up).
• Free Package Pickup service at your home or office.
• Pay for postage using stamps, a self-service kiosk, Click-N-Ship® service, or at a Post Office™ location.
• Tracking is included.
• Business customers can use USPS Ground Advantage Return service as a convenient option for customers who need to send items back.
• $100 insurance is included (for both outbound and return shipments), and you can purchase up to $5,000 in additional coverage against loss or damage for merchandise.
• Primary option for sending hazardous materials (HAZMAT) that are only mailable using Ground Transportation.

Last month, the USPS announced it would raise First Class Mail on July 9th by approximately 5.4% since it last raised rates in January 2023. As we noted at the time, the increase is even higher if you compare the rates to a year ago. For example, the cost of a stamp in 2 months will be 10% higher than in July 2022 – and will be nearly 14% higher than what a stamp cost in June 2022.

Ina Steiner

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.