2023 Mailing and Shipping Rate Increase

December 29, 2022
2023 Mailing and Shipping Rate Increase

It’s here! The new postal rates have been approved, and take effect on January 22nd, 2023. In this article, you can discover what you need to know about the rate increase and why it’s essential for your business.



What You Need To Know About The Updated Postage Rates In January 2023


On November 10th, 2022, the United States Postal Service™ (USPS) filed notice with the Postal Regulatory Commission (PRC) of price changes for Shipping Services to take effect on January 22nd, 2023.

The notice for Mailing Services price changes was filed on October 7th, 2022. These price changes will also take effect on January 22nd, 2023.

The PRC is an independent federal agency that provides accountability, counterbalance, and regulation to postal service operations. The USPS must submit changes to the PRC if they wish to make any changes to postal rates, changes that can apply to any type of mail classification. USPS and other major shipping and delivery services cannot enforce new rates or types of mail classifications without approval from the PRC.


Avoid Unexpected Mailing And Shipping Costs By Knowing These New Postal Rates


Updated Shipping Rates Starting January 22nd, 2023:


  • Some Priority Mail Flat Rate® retail product prices will be reduced compared with the temporary rate adjustment currently in place, and Priority Mail® commercial rates will increase by 3.6%, which is below the rate of inflation.
  • Priority Mail service prices increase by about 5.5%, Priority Mail Express® service prices increase by 6.6%, and First-Class Package Service® prices increase by 7.8%.
  • Priority Mail Flat Rate retail price changes are:
    • Small Flat Rate Box is decreasing from $10.40 to $10.20
    • Medium Flat Rate Box is increasing from $17.05 to $17.10
    • Large Flat Rate Box is increasing from $22.45 to $22.80
    • APO/FPO Large Flat Rate Box is increasing from $20.95 to $21.20
    • Regular Flat Rate Envelope is decreasing from $9.90 to $9.65
    • Legal Flat Rate Envelope is decreasing from $10.20 to $9.95
    • Padded Flat Rate Envelope is decreasing from $10.60 to $10.40
  • FedEx® shipping rates are increasing on average by 6.9%, and affect their FedEx Express, FedEx Ground, and FedEx Freight services.
  • UPS® SurePost services will increase by an average of 6.9%.


Updated Mailing Rates Starting January 22nd, 2023:


  • First-Class Mail® Forever stamp is increasing from $0.60 to $0.63.
  • First-Class Mail (FCM) prices are increasing by about 4.2% to offset the rise in inflation.
  • Affected Mailing Services and new pricing, based on the 4.2% increase:
    • FCM Letters (1 oz) is increasing from $0.60 to $0.63
    • FCM Letters (metered 1 oz) are increasing from $0.57 to $0.60
    • Domestic FCM Postcards are increasing from $0.44 to $0.48
    • FCM International Postcards are increasing from $1.40 to $1.45
    • FCM International Letters (1 oz) are increasing from $1.40 to $1.45


Know What Mailing And Shipping Rates Are Not Changing In January 2023


It’s important to know what’s not changing with your next postal rate because, if the classification applies to your business, it can offer peace of mind in your shipping and mailing operation. In other words, it’s one less thing for you to worry about in your business!

Per USPS’s site:

  • There is no price increase for Parcel Select Ground®, making it a continuously reliable and economical shipping option for medium- and large-sized shippers.
  • The pricing for USPS Connect™ Local will remain unchanged. This service allows businesses to ship and deliver same-day and next-day to their local customers at an affordable rate. You can discover those rates through your required USPS.com business account.
  • There is no change to the additional-ounce price of single-piece letters and flats, so it remains at $0.24.


Why It’s Important To Know Your Mailing And Shipping Costs


There are several advantages to knowing what mailing and shipping rate changes are coming up. Most importantly, it helps you to plan your expenses better. The last thing you want is an unexpectedly lower bottom line because of surprise postage costs!

Knowing your new mailing rates and shipping costs will also help you to process your mail more efficiently. For instance, you and your team will be prepared to handle changes in parcel packaging.

And lastly, you can be assured that the correct postage is always being applied. No matter what, you always want to make sure your business is compliant. Using incorrect postage can result in fines and fees, returned packages, and larger costs hitting your business bank account later.


Save On Mailing And Shipping Costs With An IMI Compliant Postage Meter And Postage Accounting Software


Did you know that there are ways you can make monitoring and adjusting your mailing and shipping expenses much easier?

With an intelligent and compliant mailing system, new rates will automatically download into the software of the postage meter. You can process your mail and letters much quicker and more accurately, with some meters being able to handle up to 300 letters per minute! The machine will detect the size and weight, and with one fell swoop, all your mail will be metered without a second guess.

With a postage meter, your mail will have the Intelligent Mail Indicia, so your mail will be fully compliant with the new post office standard. Also, not to mention the ease of removing hand-placed stamps.

You can also make your shipping and mailing operations more efficient with advanced postage accounting software. Postage accounting software collects postage usage data to help your business monitor, track, and control postage expenses. High-quality electronic postage software can do this in real-time and ensures you always have the most up-to-date postage rates. From a single dashboard, you can track all of the data you need for all of the major delivery services (USPS, UPS, FedEx, and DHL).


Take Control Of Your Shipping And Mailing Costs Like A Pro


Many businesses struggle with their mailing and shipping costs due to outdated equipment, quickly changing rates, expensive carrier expenses, and more. They also need help gathering postage user data. You can rely on Lineage’s mailing systems and postage accounting software to turn this around!

Fill out our contact form today to get more detailed information for your business.