Navigating The July 2023 Postage Rate Changes
New Postage Rates Approved To Battle USPS Rising Costs From Inflation
Adaptation is the key to success in the ever-evolving landscape of mailing and shipping. As July 2023 rolled in, so did a set of changes to postage rates for businesses and individuals to adapt to. The changes were first filed by the United States Postal Service (USPS) on April 10th, 2023 for Mailing Services changes, and then again on May 10th, 2023 for changes to Shipping Services. They were filed with the Postal Regulatory Commission (PRC), approved by the Governors of the U.S. Postal Service, and went into effect on July 9th, 2023.
Whether you manage a business that ships products or one that relies on mailing communications with customers, understanding these postage rate changes and shipping updates is important to optimizing your budget and providing excellent service.
Ensure you’re well-equipped to make informed decisions with your mailing and shipping practices. In this post, we’ll go over the adjustments to the July 2023 postage rates and shipping categories, and offer valuable insights to help you navigate these changes with confidence.
Mailing Services Rates As of August 2023
The most significant change to Mailing Services by the USPS is an approximate 5.4% increase in certain rates.
The July 2023 postage rate changes include:
- First-Class Mail Forever stamp increased from $0.63 to $0.66 cents
- First-Class Mail Letters (1 oz) increased from $0.63 to $0.66
- First-Class Mail Letters (metered 1 oz) increased from $0.60 to $0.63
- Domestic Postcards increased from $0.48 to $0.51
- First-Class Mail International Letter (1 oz) increased from $1.45 to $1.50
- First-Class Mail International® Postcards increased from $1.45 to $1.50
What did not change:
- Single-piece letter and flat additional-ounce pricing – pricing remains at $0.24
New Shipping Services Available In August 2023
Two new USPS shipping services are prompting businesses to reassess their shipping strategies. These additions have introduced a new dynamic to the cost of moving goods.
Introducing USPS Ground Advantage™ Service
USPS launched the USPS Ground Advantage™ service. This service notably provides a reliable and affordable way for retail and commercial customers to ship packages up to 70 lbs in two to five business days.
USPS Ground Advantage™ also makes shipping more straightforward by merging several of the post office’s services into one. The following USPS services have either been discontinued or modified within the new service:
- First-Class Package Service®
- USPS Retail Ground® service
- Parcel Select Ground® service
- First-Class Package Return® service
- Ground Return Service
USPS Ground Advantage Return is a complementary and convenient option for customers that need to send items back or manage customer returns.
This revitalized look to shipping with USPS is perfect for businesses and individuals that need affordable domestic ground shipping to all 50 states, U.S. military bases, and associated territories.
Why Is USPS Increasing Rates?
Delivering For America Plan
The USPS remains committed to its 10-year plan, Delivering For America, to become a sustainable, reliable, and affordable organization. After a decade of losses that were estimated to be about $160 billion, the government agency was in a financial and operational crisis. In 2021, they developed Delivering For America to combat these losses and modernize their services.
The core goals of the plan include:
- Evolve into a modern agency that can reliably provide world-class service at affordable prices
- Uphold a universal standard for six-day mail delivery, and advance infrastructure for seven-day package delivery reach
- Promote improved stability and investment strategies in its workforce
- Embrace innovation for changing revenue and marketplace needs
- Adopt practices for financial sustainability that meet its mission goals
Although the USPS is constantly implementing strategies to promote its sustainability goals, it still feels the effects of the old pricing models that failed them. This, on top of operating expenses that have continued to increase due to inflation, keeps the organization short of its revenue goals. Price increases like the ones from July 2023 and January 2023 offer the post office an opportunity to fill in its revenue gaps and meet the goals of its 10-year plan for financial stability.
Managing Changing Postage Costs In Your Business
Leveraging intelligent postage accounting software is a newer strategy for effective cost management of mailing and shipping processes. Such software empowers businesses to meticulously track and analyze their mailing expenditures, allowing for real-time visibility into postage usage.
From monitoring postage expenses for different mail classes to generating detailed reports that unveil trends and potential areas for optimization, this kind of software can offer invaluable insights into optimizing your bottom line. By automating tasks like rate calculations, postage purchasing, and reconciliation, businesses can streamline their mailing workflows, reduce human error, and allocate resources more efficiently.
Ultimately, embracing postage accounting software not only enhances financial transparency but also equips businesses with tools to make informed decisions that contribute to substantial savings and improved mailing operations.
Stress Less About Changing Postage Rates
By harnessing the power of automation, real-time tracking, and comprehensive reporting, businesses can optimize their mailing processes, streamline operations, and make well-informed decisions that contribute to the bottom line.
You’ll stress less about keeping up with changes in the post office, because powerful and intelligent software will do it for you.
If you’re ready to maximize your business operations through the benefits of mailing software, look no further than Lineage. With our cutting-edge solutions tailored to your specific needs, we’re here to guide you through these intricate changes and help you achieve greater efficiency and savings. Reach out to us today to learn more about how Lineage can be your partner in navigating the complexities of postage rate adjustments and optimizing your mailing operations.
Together, we’ll pave the way for a more cost-effective and streamlined future in your mailing endeavors.