2023 USPS Rate Increases and Service Changes

The United States Postal Service has announced rate increases and service updates going into effect as of January 22, 2023. There are the standard rate increases to some Priority Mail and First Class Mail services, but there are also updates to regional and local shipping services. Additionally, shipments bound for Canada have a singular pricing structure.  

• USPS First-Class Package Service prices increased by an average of 7.8% 
• USPS Priority Mail® rates increased by 3.6% 
• USPS Priority Mail Express® prices increased by 6.6%
• USPS Priority Mail International® and International Express® prices increased by 5.9%
• Regional Rate Boxes A & B® services have been discontinued
• Parcel Select® Ground pricing remains the same as 2022 rates
• Local Zone no longer exists, and Zone 2 pricing no longer matches Zone 1 pricing

USPS Pricing Changes for 2023

The most impactful changes USPS makes each year are their annual rate changes. If you rely on the USPS to ship your orders, there are still ways to save money—regardless of an annual rate increase. To keep costs low, ShipEngine offers many ways to save on USPS shipping. 

2023 USPS Rate Changes Chart

Popular USPS services are seeing a range of rate increases for 2023. Luckily, USPS Commercial rates are not only more affordable, but also subject to a smaller rate increase. Priority Mail rates are increasing by an average of 5.5%. ShipEngine users benefit from a lower rate and can avoid many of the higher costs associated with USPS retail rates on Priority Mail and other services. 

2023 USPS Priority Flat Rate Pricing

USPS Regional Shipping Changes 

The USPS has restructured how it deals with local and regional shipping services. Along with these changes come some pricing changes. USPS Parcel Select Ground rates remain unchanged from 2022. However, local and regional rates have been impacted. 

2023 Changes to USPS Zones

The USPS has restructured its zones slightly for 2023. While Zones 1–9 will remain, the local zone is being discontinued. This historically has been for parcels that originate and are sent through the same post office. 

USPS Restructures Pricing for Zone 1 & 2

USPS is creating distinct pricing for both zones 1 and 2. Zone 1 shipments are shipments sent to recipients within 50 miles of the origin post office. Zone 2 shipments are sent within 150 miles. Historically, these two zones shared the same pricing structure. However, Zone 2 shipments will now see a slightly increased shipping rate over Zone 1 shipments.

USPS Discontinues Regional Rate Boxes 

Another change to regional shipments is that USPS no longer supports Regional Rate Boxes. These flat-rate parcels for shipments weighing up to 15 or 20 lbs will be phased out. While these services are no longer available, the remaining stock of Regional Rate boxes may be used as standard packaging until they deplete. Keep in mind, though, that these parcels will be charged the rate of the new, applied service. Economical replacements for Regional Rate Boxes may be USPS Parcel Select Ground or other discounted USPS services available through ShipEngine Carriers. 

USPS Simplifies Priority Shipments to Canada 

Historically, Priority Mail International shipping rates destined for Canada were segmented into 8 different Pricing Groups. USPS has now streamlined Canadian pricing into a single group for any and all Canadian delivery locations. All Priority Mail International shipments sent to Canada will now fall into International Pricing Group 1.

How ShipEngine Helps Keep Shipping Costs Low

As a ShipEngine customer, our partnership with USPS rates give you access to substantial savings on shipping costs. So, even as rates increase, you can still pay lower rates than your competition. We help our customers manage their shipping operations efficiently, and our discounted USPS shipping rates are another way we’ll continue to keep your fulfillment process running smoothly.