August 30, 2024

If you ship packages often, then keeping track of carrier policy changes is a must. USPS is one of the most important shipping services in the nation, and not just because it is the United States Postal Service. USPS offers affordable and efficient shipping options that are the go-to solution for many businesses and individuals who rely on shipping.

In 2024, USPS is rolling out several changes to shipping services including price increases, policy changes, and sustainability objectives.

Rate Increases

As of July 2024, USPS is increasing several of its shipping service prices by 5.4 to 5.9 percent. This may sound like a small number until you consider that these price increases are across the board and will have a drastic impact on anyone who ships through these services regularly.

  • USPS Ground Advantage prices increase by 5.4%
  • USPS Priority Mail prices increase by 5.7%
  • USPS Priority Mail Express prices increase by 5.9%

Service Adjustments

USPS is not changing how they deliver these services, they are only increasing the price. USPS presents these price increases as an effort to remain competitive while also funding its 10-year transformation plan to update facilities and achieve ecological sustainability goals.

USPS has reported that they are consolidating facilities, reducing the number of random facilities used by USPS, and streamlining routes to reduce the total environmental impact of mail and package delivery. They do not anticipate a change in customer experience.

Impact on Businesses

These changes to USPS shipping prices will have the biggest impact on small businesses and e-commerce brands that rely on USPS to deliver products to their customers and order essential supplies for the business. USPS has been considered an affordable and reliable shipping partner for small businesses for many decades. 

Small businesses can expect an increase of up to 6% in shipping costs if they rely primarily on USPS to provide routine business shipping. When working on a small margin, can drastically increase the overhead required to provide customers with fast and reliable product deliveries.

Tips to Adapt to the New Rates

  • Recalculate your budget to accommodate the higher shipping cost
  • Offer customers a discount for slower and more affordable shipping options
  • Select a carrier with a more competitive shipping rate
  • Diversify your carriers to get the best rate with each delivery

Environmental and Operational Benefits

USPS is currently implementing its 10-year transformation plan to meet environmental goals alongside long-term financial stability and facility modernization. The new rates will likely help them afford to make essential changes. For example, in 2024, USPS is releasing its first electric vehicle fleet including 66,000 battery electric-powered delivery vehicles and a nationwide network of charging stations. They intend to rapidly deploy emission-free vehicles to drastically reduce the carbon cost of national mail and package delivery.

USPS is also seeking to achieve up to 74 percent recycled packaging materials and divert up to 75 percent of the organization's waste from landfills toward recycling. They want to increase package recyclability up to 88 percent and increase their use of renewable energy by 10 percent. They hope to fully reach all of these goals by 2030 so more changes are likely on the way.

What Does This Mean for You?

Whether you ship regularly or occasionally with USPS, the increase in shipping rates is something to be aware of. Small businesses, eCommerce, and entrepreneurs should expect up to 6% higher shipping rates when using Ground Express, Priority Mail, and Priority Mail Express. You can also expect to see a lot of technical and sustainable renovations going on at USPS over the next few years. Ideally, this will provide a net benefit in efficiency and modernization for customers as well as internal USPS operations.

Navigating the Change with AIM Mail Center

If you're not sure how to navigate the changes in USPS prices and policies, don't worry. Our teams at AIM Mail Centers are experts in the shifting marketplace of package delivery. Contact AIM Mail Centers for assistance with USPS shipping services.