USPS Rate Change 2024: What It Means for Your Business

Key points:

• USPS price increases and holiday peak fees can significantly impact shipping costs for eCommerce businesses, but planning ahead is key to managing these changes
• Easyship offers discounts of up to 89% on USPS rates, plus access to over 550+ courier services, automated shipping rules, and carrier comparisons to find the best rates
• Businesses can minimize the impact of USPS rate hikes by using multi-carrier shipping strategies, adjusting pricing, and increasing checkout transparency with Easyship's tools

Shipping costs affect businesses of all sizes, especially when USPS increases its prices. But why do these changes happen, and how can you handle them? In this guide, we explain the reasons behind USPS price rise, how holiday fees affect shipping, and how you can save money with Easyship’s tools.

Why USPS Prices Are Changing in 2024

USPS has implemented several price adjustments in 2024 to better align its services with market trends and ensure long-term sustainability. These changes reflect the Postal Service’s commitment to adapting to evolving customer needs and the growing demand for eCommerce package and parcel delivery services.  

Earlier in 2024, USPS introduced price updates across key shipping services, which were necessary to maintain operational excellence and continue delivering value to customers.

The USPS 10-Year Plan: Delivering for America

The Delivering for America plan, initiated by Postmaster General Louis DeJoy, is a strategic roadmap designed to modernize USPS operations over a 10-year period. Now in its third year, this plan focuses on stabilizing financial performance, improving service quality, and investing in new technologies to keep up with the dynamic shipping industry.

As part of this initiative, USPS is working to streamline operations while enhancing the overall customer experience through improved reliability and delivery options.

Goals and Objectives of the 10-Year Transformation Plan

The USPS Delivering for America innovation plan outlines several key goals:

• Enhancing delivery services: Extending service offerings, including additional tracking features and delivery options.
• Boosting efficiency: Implementing more automated processes to improve package handling and reduce delays.
• Sustainability: Investing in eco-friendly technologies, such as electric delivery vehicles and more sustainable packaging options.These improvements aim to ensure USPS remains a dependable partner for eCommerce businesses while maintaining affordable rates.

What eCommerce Brands Can Expect in the Future

As USPS continues to execute its 10-year plan, eCommerce brands can expect further enhancements in service quality, speed, and reliability. These updates will likely include more advanced tracking capabilities, expanded delivery networks, and new shipping options tailored to meet modern consumer demands.

While some pricing adjustments will occur as part of these innovations, the focus remains on delivering consistent value and improved services to businesses and customers alike.

USPS Holiday Peak Fees (2024)

During the holiday season, businesses usually see higher shipping costs due to holiday peak fees. These surcharges apply to services like Priority Mail Express, Priority Mail, and USPS Ground Advantage, affecting sellers who ship online orders.

While there was no surcharge last year in 2023, USPS is bringing the holiday fees back this year. From October 6, 2024, to January 19, 2025, businesses will face higher shipping costs. This increase comes just before the next postal price hike, so planning ahead will be key for businesses.

What Does This Mean for US eCommerce and Retailers?

These USPS price updates mean that shipping costs for eCommerce retailers will rise, which could hurt your business if you're not prepared. But despite the price hikes, USPS remains one of the most affordable shipping options in the world. There are ways to reduce the impact on your business:

1. Leverage Easyship Solutions: Easyship offers discounts of up to 89% off USPS rates and connects you with 550+ other carrier services like FedEx, UPS, and DHL. With Easyship’s courier selection tool, you can always find the best shipping rates and automate savings by setting up shipping rules.
2. Evaluate Your Budget & Operations: Take a close look at your budget for 2024 and plan for the higher postage costs. You might need to adjust your pricing, reduce packaging sizes, or even look into third-party logistics (3PL) services to cut operational costs.
3. Adjust Pricing Strategy: Consider adjusting your product pricing to help cover the rising shipping costs. Keep an eye on your competitors to stay competitive and avoid losing customers.
4. Increase Transparency at Checkout: Customers like to know what to expect. By clearly displaying the best shipping options and costs at checkout, you can reduce cart abandonment and improve conversion rates. You can also pass on the full cost of shipping to your customers, offsetting any price rise.
5. Implement Multi-Carrier Shipping Strategies: Don’t rely on just one carrier. Use Easyship to compare rates across multiple carriers and always pick the best option for each shipment. This can help you save on shipping costs and give you more flexibility.

How Much Are USPS Rates Changing in September 2024?

USPS is updating its rates starting September 16, 2024. These changes will affect Priority Mail and Ground Advantage services. For nearly 17,000 five-digit ZIP Codes, prices will either increase or stay the same, depending on the zone and package weight. ZIP Codes not included in this list won't be impacted. Here's a breakdown of the main rate changes for different USPS services:

Priority Mail:

• Regular Rates: Most rates will see price increases, with rates going up by as much as $4.50. While the remaining rates stays the same
• Cubic Rates: Zones 1-8 are increasing by up to $2.72. The remaining stays the same
• Flat Rates: Flat rates are increasing across all zones, with up to $1.16 increased compared to the current rates

Ground Advantage:

• Regular Rates Below 1 lbs: For packages over 12oz, Zone 1-8, prices are increasing by up to $0.74, while the remaining rates stays the same
• Regular Rates Above 1 lbs: For packages up to 20 lbs, Zone 1-8, prices are increasing by up to $3.14, the remaining rates are the same
• Cubic Rates: Rates are increasing across Zone 1-8 by up to $7.93, while the remaining rates are the same

These new rates will affect eCommerce businesses differently based on the size, weight, and destination of their packages. Planning ahead and adjusting your shipping strategy will help you manage these changes effectively.

How to find the Cheapest Way to Send a Parcel with Easyship

Easyship is the top shipping and logistics company working with a network of over 550+ courier services worldwide. This has put us in a position to negotiate some of the best shipping discounts with leading couriers, and we can help you reduce your shipping expenses by up to 91%.

We also offer a range of easy-to-use shipping tools, to help streamline your shipping experience and delight your buyers. Popular features include:

• Shipping Rate Calculator: You can use our shipping rate calculator to compare shipping rates from different carriers
• Comparison Tool: With our courier comparison tool, you can compare the different shipping services offered by each courier, allowing you to choose your cheapest way to ship based on other factors, not just the cost
• Insurance: For peace of mind whilst your packages are in transit, Easyship offers you insurance up to $10,000
• Tracking: From custom-branded tracking emails to automatic message alerts, Easyship helps you maintain package visibility with your buyers throughout the delivery process

FAQs

What are the best USPS alternatives?

While USPS rates remain competitive, exploring alternatives can help optimize shipping costs and services. Some top alternatives include:

UPS: 

UPS Ground Saver is designed for those looking for an economical way to ship lightweight, non-urgent packages to residential addresses. This service is particularly beneficial for small businesses that want to save on shipping costs without sacrificing reliability.

FedEx: 

FedEx offers Ground Economy, a service that combines reliability with speed. This option is suitable for businesses that need to ship packages quickly without the higher costs associated with expedited services.

Sendle: 

Sendle provides a unique service called Preferred Pick Up, which leverages a network of regional service providers. This approach allows Sendle to offer premium shipping services at a significantly reduced cost. This option is perfect for small businesses looking to optimize their shipping expenses while maintaining high service standards.

Using Easyship’s Shipping Rate Calculator tool allows you to compare these carriers' rates and services, ensuring you choose the best option for each shipment automatically.

What is changing with USPS' New Mailing Technology?

USPS is focusing on innovation as part of its Delivering for America plan, which alongside focusing on financial sustainability includes:

• Enhanced Tracking: Improved package tracking capabilities to provide more accurate and timely updates.
• Automation: Increased automation in sorting and delivery processes to boost efficiency and reduce errors.
• Sustainability: Implementation of eco-friendly practices and technologies to reduce environmental impact.

These changes aim to enhance service quality and reliability, benefiting both retailers and consumers.

How can I minimize the impact of USPS rate change on my business?

Easyship provides a range of features to help online retailers save on shipping costs:

• Discounted Rates: Access to up to 89% off retail shipping rates with USPS and other carriers.
• Courier Comparison: Compare rates and services from over 250 top carriers to find the best option for each shipment.
• Automated Shipping Rules: Set up rules to automate carrier selection based on package size, weight, destination, and delivery speed.
• Intelligent Dashboard: Manage all your shipping needs from a single, user-friendly interface, saving time and reducing errors.

How can I pass on shipping costs to customers at checkout?

You can pass shipping costs to customers by offering real-time shipping rates at checkout. With Easyship, you can display live shipping options from multiple carriers, ensuring your customers see accurate rates based on their location and package details. This helps cover shipping expenses without affecting your profit margins.

How can I reduce shipping costs by automatically selecting the smallest box?

Using the smallest box that fits your items is a great way to reduce shipping costs. Easyship’s platform can help by setting up shipping rules to automatically choose the smallest possible box for each order, ensuring you only pay for the space you need. This helps cut costs on dimensional weight pricing and improves efficiency.

How often should I review my flat rate shipping pricing?

It’s a good idea to review your flat rate shipping pricing at least twice a year. Check for changes in carrier rates, packaging sizes, and any additional fees. By staying updated, you can make sure your flat rates cover costs while remaining competitive. Easyship’s tools let you track rates across multiple carriers, making this process easier.

How much does Easyship cost?

Easyship offers different pricing plans based on your business needs, with both free and paid options. The best part is that with Easyship’s automated tools and discounted shipping rates—up to 91% off retail prices—our paid plans can often pay for themselves at certain shipping volumes. You get more savings as your business grows, making Easyship a cost-effective solution.