2023 USPS Rate Changes and Service Updates

Published on January 20, 2023
Written by
Filed under Carrier Rates
Read time 7 Minutes

Keeping with tradition, the United States Postal Service (USPS) has announced their annual rate changes and service updates effective January 22, 2023. Along with standard rate increases to some Priority Mail® and First Class Mail services, there are changes to regional and local shipping. Additionally, shipments headed to Canada have seen a simpler pricing structure. These changes help the USPS deliver parcels more effectively to customers that live in the same city or across the globe. 

  • USPS Priority Mail® rates increased by 3.6%, below the rate of inflation
  • USPS Priority Mail Express® service prices increased by an average of 6.6%
  • USPS First-Class Package Service prices increase by an average of 7.8% 
  • Parcel Select Ground pricing remains the same as 2022 rates
  • Regional Rate Boxes A & B® services have been discontinued
  • Local Zone no longer exists
  • Zone 2 pricing has a higher cost than Zone 1 pricing 

USPS Pricing Updates for 2023

If you’re an ecommerce seller who sends mail and parcels on a regular basis, the most impactful annual changes the USPS makes are the rate increases. Priority Mail, Priority Flat Rate, and First Class Mail are all seeing rate changes this year. Despite these changes, you can save money on shipping regardless of annual rate increase. You save big on shipping with ShipStation. We offer discounts on USPS retail rates. See how affordable shipping costs can be by using ShipStation’s USPS Shipping Calculator

2023 USPS Rate Changes Chart

Commonly used USPS services are seeing a range of rate increases for 2023. Luckily, USPS Commercial rates not only cost less, they’re also seeing a smaller rate increase. While the average rate increase for Priority Mail is 5.5%, ShipStation users see a lower rate and can avoid many of the higher costs associated with USPS retail rates on Priority Mail and other services. 

USPS Service2023 Commercial Rate2023 Retail Rate
USPS First Class Mail®6.9%8%
USPS Priority Mail® 3.6%6.8%
USPS Priority Mail Express® 6.0%6.7%
USPS First Class Package International®6.2%6.6%
USPS Priority Mail International® 5.9%6%%
USPS Priority Mail Express International®5.9%6%

2023 USPS Priority Flat Rate Pricing

USPS Priority Mail Flat Rate Packaging2023 Commercial Rate
Flat Rate Envelopes$8.05
Legal Flat Rate Envelope$8.35
Padded Flat Rate Envelope$8.80
Small Flat Rate Box$8.55
Medium Flat Rate Boxes$14.75
Large Flat Rate Boxes$19.90
APO/FPO/DPO Large Flat Rate Box$18.35
Regional Rate Boxes A/Bdiscontinued

Changes to USPS Local and Regional Shipping  

The USPS has restructured elements of its local and regional shipping services. These changes include both pricing increases and some discontinued services which may require you to change how you offer local delivery or pickup. Services like Parcel Select Ground offer economical delivery options and also are not seeing pricing updates this year!  

2023 Changes to USPS Zones

The USPS segments pricing for parcels into something called “zones.” Domestically, USPS’s zones consist of local zone and zones 1–9. The three nearest zones are zones local, 1, and 2. Mail that are only sorted at the origin post office fell into “local zone.” Zone 1 shipments are within 50 miles. And zone 2 shipments are within 150 miles. Historically, parcels falling into these three categories had the same pricing structure. But this is changing. 

As of January 22, 2023, the local zone no longer exists. “Local” mail pieces now fall under the zone 1 pricing structure. Additionally, USPS zone 2 shipments now have their own pricing structure. 

Support Ends For USPS Regional Rate Boxes 

Along with local zone shipments, USPS has ended support for Regional Rate Boxes. This option allowed for shipments weighing up to 15 pounds (Regional Rate A box) and 20 pounds (Regional Rate B box). Even though Regional Rate boxes have been suspended, the boxes may be used as for other USPS services until supplies deplete. Note that the parcel’s cost will be for the selected service/package combination. 

USPS Simplifies Priority Shipments to Canada 

In the past, Priority Mail International shipping costs for Canada have been segmented into 8 different pricing groups. USPS has streamlined Canadian pricing into a single Group for any and all locations. All Priority Mail International mailpieces sent to Canada will now fall into International Pricing Group 1.

How ShipStation Keeps Shipping Costs Low

ShipStation is all about efficiency. We help ecommerce merchants save time and money when shipping their orders. Through shipping automation, simple-to-use bulk actions, and shipping discounts, you can print your day’s shipping labels in just a few clicks and save up to on label fees. 

Discounts on Label Rates

ShipStation values its close relationship with global shipping leaders like USPS. With ShipStation Carrier Services, you can print postage for many carriers and access massive savings label fees. All the postage is paid through a single postage balance—streamlining purchasing and bookkeeping. 

Shipping Automation Built For How You Need It

ShipStation allows you to automate many of the tedious steps that would otherwise require manual entry. Things like automatically applying shipping presets and sending shipping confirmation are done behind the scenes. All you have to do is click “print.” 

If you currently use ShipStation, you may want to double check your automation rules to make sure they are using the best shipping services for the destination and parcel size and weight.

More after jump! Continue reading below
Written by

James Messer

James Messer is a copywriter specializing in shipping, logistics, and ecommerce.

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