USPS Shipping Rate Increases 2020
by Marco Raye
The ecommerce industry in the United States alone has grown significantly year over year since 2010, and in 2019, ecommerce sales totaled well over $500 billion. Globally, those numbers reached about $3.5 trillion.
There's no question that shipping rates are a critical factor for every business today, no matter its size or sales volume. With the ever-increasing number of packages being shipped through ecommerce sales, partnering with a forward-thinking shipping logistics solution is more important than ever before. Aside from providing significant savings on shipping and postage costs, a shipping logistics company can provide you with more control and flexibility when it comes to your shipping processes, enabling you to focus on other aspects of your business.
Although today the vast majority of letter correspondence is done electronically, there is still no better way to ship packages than through the United States Postal Service (USPS). USPS ships more places on more days a year and at a better value than its competitors. On January 26, 2020, USPS formally announced an increase to its rates, affecting nearly all types of letters and packages.
Understanding these changes to 2020 USPS shipping rates is essential to help you make the best logistics decisions for your business, so here is a straightforward guide to the changes.
USPS 2020 Rate Increase Highlights
First-Class Mail — Letters & Flats
- Under the approved USPS 2020 rate increase, there are no changes to First-Class Mail postcards, letters, or flats, which are up to 1-ounce.
- Postcards will continue to be $0.35 to mail in 2020, which is the same rate as in 2019.
- The 2020 retail cost of a First-Class stamp required to mail a letter is $0.55, and each additional ounce costs $0.15, remaining unchanged from 2019.
- First-Class Mail letters and postcards mailed using "Metered Mail," which includes postage meters and online postage, are still $0.50, which is a 5% discount compared to retail rates in the Post Office.
- Flats and Large Envelopes weighing up to 1 ounce shipping via First-Class Mail will continue to be $1.00 to mail.
- However, each additional ounce will now cost $0.20, which is a $0.05 increase over 2019.
- The cost to ship First-Class Packages in 2020 is increasing by 2.2% on average. In 2019, rates started at $2.66 using Commercial Plus rates through EasyPost. The minimum price in 2020 is $2.74.
- Media Mail domestic rates are increasing 1.9% over 2019 rates in 2020, with postage rates starting at $2.80. Previously, they were $2.75.
- 2020 USPS shipping rates for Parcel Select Ground are increasing 2.5%, up to a base price of $6.92 from 2019's $6.85.
- Priority Mail rates see the largest 2020 increase in domestic rates, 2.8% over 2019. Commercial Plus rates begin at $7.02, whereas in 2019, they started at $6.95.
- The rates for Priority Mail Express in 2020 are increased by 2.2%, beginning at $22.75. 2019 rates started at $22.68.
- First-Class Package International Service sees the most significant increase in 2020 internationally. EasyPost's Commercial Plus rates start at $11.64, a 9.9% increase over the minimum $9.98 in 2019.
- The 2020 rates for Priority Mail International get an average increase of 6%, with online rates starting at $34.53. In 2019, the beginning rate was $32.59.
- Priority Mail Express International rates increase by 2% in 2020, up to a minimum price of $42.85 over 2019's $42.00.
It's important to keep in mind that USPS does not apply any surcharges for fuel, Saturday or peak season delivery, or residential delivery, whereas many other shipping providers do.
The seemingly constant changes can feel overwhelming and frustrating, especially to small businesses. Instead of trying to navigate your company's shipping and logistics needs yourself, consider talking to an expert. EasyPost is a next-generation logistics company that helps thousands of customers ship millions of packages every month. We've been around since 2012 and have customers ranging in size from owner-operator companies to large public corporations. We know a thing or two about simplifying shipping logistics, and we'd love to hear from you.