The USPS 2023 shipping rate changes have been approved and will go into effect on January 22, 2023, replacing the Peak Season rates released in October 2022. Here, we will sum up what you need to know. Overall, rates increased across services and zones from last year, though many are still a reduction from the October increases. USPS is also introducing some changes that merchants must be aware of, particularly if they ship to nearby locations.
USPS 2023 Shipping Rate Changes Highlights:
- Priority Mail commercial rates will increase by 3.6 percent, below the rate of inflation
- Priority Mail Express service prices would increase by 6.6 percent
- First-Class Package Service prices would increase by 7.8 percent
- Overall, Priority Mail service prices would increase by approximately 5.5 percent
- There is no price increase for Parcel Select Ground
- Regional Rate boxes A and B will no longer be supported (if you have boxes still, you can use them at regular Priority Mail rates until stock is exhausted)
- Local, Zone 1, and Zone 2, which were previously the same rate, will now change to just Zone 1 and Zone 2 with separate shipping rates
- Canadian Zones will be collapsed down to a single pricing zone for Priority Mail International
Let’s get into a few more details on these changes.
USPS Flat Rate 2023 Rate Changes
USPS Priority Mail Flat Rate boxes and envelopes are popular shipping services for many online sellers thanks to their simplicity, free packaging, and competitive rates, regardless of package weight or destination. This year, it looks like each of the options will be seeing an increase across the board, mostly around 3.6% as mentioned above for Priority Mail in general. Below you can find a full breakdown of the 2023 USPS Priority Mail Flat Rate price changes.
*Also, note that ShippingEasy provides additional discounts on published Priority Mail Commercial Rates.
| USPS Priority Mail Flat Rate | 2022 Commercial Rates | 2023 Commercial Rates | Price Increase |
|---|---|---|---|
| Flat Rate Envelopes | $7.75 | $8.05 | $0.30 |
| Legal Flat Rate Envelope | $8.05 | $8.35 | $0.30 |
| Padded Flat Rate Envelope | $8.45 | $8.80 | $0.35 |
| Small Flat Rate Box | $8.25 | $8.55 | $0.30 |
| Medium Flat Rate Boxes | $14.25 | $14.75 | $0.50 |
| Large Flat Rate Boxes | $19.20 | $19.90 | $0.70 |
| APO/FPO/DPO Large Flat Rate Box | $17.70 | $18.35 | $0.65 |
Priority Mail Local Zones
Priority Mail shipping rates are based on weight and distance. That distance equates to Zones. In the past, Local and Zones 1 & 2 were all the same shipping cost. For 2023, USPS is doing away with the Local terminology and splitting Zones 1 and 2 into separate pricing tiers. This will impact merchants with customers who live in nearby neighborhoods or within the same state in many cases.
Regional Rate Shipping is Going Away
Regional Rate service is a service that let you ship using preset boxes you could order online, and the rate is cheaper when shipping short distances. USPS is doing away with this service with the 2023 shipping rate changes. The removal of this service, coupled with the change to Priority Mail Local and Zones 1 & 2, means merchants with a lot of localized business will see the most impact to their shipping. USPS has recommended trying to use Priority Mail Cubic in lieu of Regional Rate. This knowledge base article explains how and when you can use cubic rates in ShippingEasy to save over standard Priority Mail shipments.
Collapsing Canadian Pricing Groups
In the past, Priority Mail International shipping costs for Canada were broken into 8 different Pricing Groups. USPS has decided to simplify Canadian shipping down to a single Pricing Group for all locations. According to the USPS 2023 shipping rate changes FAQ, all packages shipping to Canada will fall under Pricing Group 1 for international shipping.
In other international shipping news, USPS is updating ‘‘Turkey’’ to ‘‘Turkiye,’’ which is the official short name for the Republic of Turkiye. So if you see this on your customs forms, it’s not a typo.
ShippingEasy is always here to make sure you’re informed of the latest in shipping rates. Plus, you’ll always get the best shipping rates available when you use our software. Click below to start a 30-day free trial and save on every shipment!
Rob Zaleski
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