The U.S. Postal Service is the second major carrier to publish its peak season rate increase, so we’ve got important Peak USPS 2022 increases below. You’ll see the cost to ship items rise starting on October 3, running until January 23. Retail and commercial rates will increase, and you’ll pay more for heavy packages and long-distance shipments.
To help you start planning to protect margins, here’s a more detailed look at the changes.
A pattern of increases
The published peak USPS 2022 increases are designed to help the service cover extra handling costs, playing a role in its larger efforts to “achieve financial stability.” The increases bring it in line with other carrier increases and general practices. They also follow a postage stamp increase in July, meaning consumers are likely to be upset with USPS, but they’ll also be understanding if you note shipping cost increases because of the USPS price hike.
Increases will affect Priority Mail Express (PME), Priority Mail (PM), First-Class Package Service (FCPS), Parcel Select, and USPS Retail Ground. International shipments won’t face a price increase, at least with this round. The Postal Service has updated its Postal Explorer Rates page to reflect these changes, but we’ll also break down the peak USPS 2022 increases below.
Peak USPS 2022 increases hit heavier packages harder
Your big takeaway for the peak rate increases should be that packages weighing more and moving further will cost more, but commercial pricing still lags behind retail. It can be worth evaluating changes here, though many companies with large and bulky products will be better served outside the USPS pricing system. Red Stag’s experts are available to help our partners with these assessments.
Here are the peak USPS 2022 increases for each product category:
Throughout the pandemic, Red Stag and other experts have suggested that eCommerce companies start their year-end planning and launch big sales sooner.
You can see some value in that planning above, where shifting to a slightly slower service for packages can reduce costs. When shipping a package weighing at least 26 pounds to zones 5 through 9, you’ll save at least $0.60 per order. That can add up fast.
Interestingly, closer shipments aren’t always cheaper based on these fees. Both retail Priority Mail and Ground options have a $3.25 increase when moving through zones 1 to 4 for these heavier packages.
The Postal Regulatory Commission still needs to approve these price increases. Still, most experts expect this to be just a formality based on the cost and USPS’ goals of improving its financial stability.
How should you prepare?
The smartest move for companies right now is to adjust your projections for sales and margins based on these increases and others, like the announced FedEx 2022 peak season surcharges. Noting fees and determining if you’ll absorb those costs or pass them on to consumers can help you plan marketing, sales, and other efforts well ahead of Black Friday and Cyber Monday.
It would be best if you also shared these updates with your fulfillment partners. Those conversations allow companies like Red Stag Fulfillment to help ensure we’ve got enough carrier capacity for your peak sales.
We’ve been in discussions with carriers since the start of 2022 to plan for the year-end holiday season. All signs point to it being a significant sales opportunity for eCommerce. Our experts are here today to help you determine which carriers might be the best fit based on peak cost increases. With the USPS price increases, it might be time to think about a change. Plus, we can offer suggestions to help you lower fulfillment costs if you need to absorb peak USPS 2022 fees to limit any harm to sales.
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