Your USPS packages get more expensive tomorrow, just in time for the holidays. What to know – CNET

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A new USPS systemwide plan includes slowdowns and price hikes starting this month. 


Angela Lang/CNET

Planning to send holiday packages this year? You may want to budget a bit more to cover the cost of shipping if you’re using the US Postal Service. That’s because the Postal Service is raising the price on shipping parcels through the holiday season.

The price hike goes hand in hand with delivery slowdowns starting Oct. 1, which are part of a decade-long plan to stabilize the Postal Service’s rocky finances. The USPS already raised prices this summer on stamps, flat envelopes, media mail and more. And the prices could keep going up — rates will likely be adjusted twice annually in years to come

Here’s what to know about the temporary price increases on parcel shipments, including what kind of mail the new rules apply to and what to expect next year.

How much will it cost to send a package with the seasonal price hikes?

From Oct. 3 through Dec. 25, the US Postal Service will increase the cost to ship parcels from 25 cents to $5 depending on the delivery service you pick and the distance the parcel has to travel. Note that this price increase is not for letters — the post office just increased the cost of stamps in August (see below for more). 

The Postal Service defines a “parcel” as anything that isn’t a postcard, letter or flat (a large envelope, newsletter or magazine). A box of cookies, for example, would be a parcel.

Here are the temporary price increases to ship parcels based on distance the parcel will travel and its weight for Priority Mail, Priority Mail Express, Parcel Select Ground and USPS Retail Ground. Roughly, the distance covered through zone 4 is 600 miles, from, say, Boston to Richmond, Virginia:

  • $0.75 increase for Priority Mail and Priority Mail Express Flat Rate Boxes and Envelopes.
  • $0.25 increase for Zones 1 to 4, 0 to 10 pounds
  • $1.50 increase for Zones 1 to 4, 11 to 20 pounds
  • $2.50 increase for Zones 1 to 4, 21 to 70 pounds
  • $0.75 increase for Zones 5 to 9, 0 to 10 pounds
  • $3.00 increase for Zones 5 to 9, 11 to 20 pounds
  • $5.00 increase for Zones 5 to 9, 21 to 70 pounds

Do the new postage rates affect Amazon, UPS and FedEx deliveries?

The current rate hike applies only to packages sent through the US postal service. UPS and FedEx are separate from the postal service. Some Amazon packages may arrive through the Postal Service, but Amazon sets those rates. Here’s how to track when a package will arrive at your doorstep.

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Amazon delivery prices are not part of the increase.

Why is the USPS raising postage prices for the holidays?

To help close a budget deficit the service has been running since 2007, the US Postal Service is taking a series of steps overseen by Postmaster General Louis DeJoy  — some more controversial than others — to get its financial house in order.

The temporary rate hike is to cover extra handling costs the Postal Service said it expects to see starting the first week of October with the increase in holiday-related shipments. 

Didn’t the Postal Service just raise its rates?

Yes. In August, the Postal Service increased the price of a first-class stamp to 58 cents, up from 55 cents. Before that the last increase was in 2019, when the Postal Service bumped the price to 55 cents from 50. Adjusting for inflation, you can see that the price of a stamp hasn’t changed much over the last hundred years.

Could the Postal Service raise prices again?

Although the Postal Service calls this holiday-season price increase temporary, it’s the Postal Regulatory Commission that sets prices. According to a Sept. 15 filing on USPS rate adjustments, there won’t be another increase until July 2022. However, the announcement also predicts that starting in 2023, the Postal Service will annually implement price changes twice a year, in January and July.

For more information, here’s a look at the Postal Service’s policy to slow down some first-class mail. Here’s also what we know about the next child tax credit payment and which states are sending stimulus checks now.

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