USPS Rate Increases

The USPS 2017 rate changes take effect January 22nd across all shipping services. Overall, rates increased for most products, weights, and zones, but USPS has chosen not to increase rates for international services. We’ll go over changes to USPS’ most popular shipping services and carrier rate increases including Priority Mail, First Class Package, Flat Rate, and Regional Rate.

Here are a few change highlights:

  • First Class 1-8 oz packages now have two price points: $2.61 for 4oz and under, and $2.77 for 5-8oz. Good for simplifying package rates on shipments less than 4oz, but a 17-cent increase for sellers that ship out 5-8oz packages
  • Priority Mail rates for packages under 8lbs are up 3.9% on average, but some rates are down as much as 47-cents
  • There will be no changes to Priority Mail International, Priority Mail Express International, or First-Class Mail International Package Service rates

Please note: We use Commercial Plus Pricing for this entire post (CPP). USPS has also updated Retail and Commercial Base Pricing (CBP) rates, however, for the sake of consistency we’ll only be covering CPP.

UPS Rate Increases

  • Package Services, effective December 26th, 2016
    • Expect UPS Ground services to increase by an average of 4.9%.
    • Expect UPS Air & International services to increase by an average of 4.9%.
    • If your package’s longest side is over 48 inches (formerly 60 inches), the Additional Handling charge will be added to UPS Air and International packages.
      Come February 6th, 2017, the fuel surcharge will be adjusted weekly.
    • Retail rates and SurePost rates will also be increasing on December 26th. Click here to see the new retail rates and the additional handling surcharge will apply to SurePost starting January 8th, 2017.

FEDEX Rate Increases

  • Package Services, effective January 2nd, 2017
    • Expect FedEx Express shipping rates to increase by an average of 3.9% for domestic, import, and export services—all US-based.
    • FedEx Express and FedEx Ground will be changing their dimensional weight calculation from 166 to 139 (the formula will now be: L x W x H / 139). This will make the dimensional weight heavier (costing you more) than before.
    • FedEx Ground & Home Delivery will both see increases on average of 4.9%
    • There are expected rate changes for FedEx SmartPost, but they haven’t been released yet.
    • Beginning February 6th, 2017, FedEx’s fuel surcharge will also be changing weekly.

While USPS is increasing their rates, the increases are modest and below the percentage increases UPS and FedEx implemented for their services. Commercial Plus Pricing will also still be available to give sellers better discounts on packages.