USPS Is Making Even More Changes to Your Packages, Starting This Summer

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The U.S. Postal Service (USPS) is currently in the midst of a major transformation. After years of financial struggle, the USPS announced in May 2021 that it would be taking action to improve itself and reverse a projected $160 billion in future losses through its new Delivering for America plan. Over the next several years, the Postal Service will continue to enact various changes in order to modernize its service. Some adjustments have already been made, but they show no signs of slowing down. Now, the USPS has announced a new plan for packages. Read on to find out what you should prepare for, starting this summer.

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As part of its Delivering for America plan, the Postal Service has decided to shake up how it delivers our packages. Back in May 2022, the agency implemented new service standards for its First-Class Package Service (FCPS). This change allowed for “additional transport time for long-distance package deliveries,” slowing down the delivery timeframe for 32 percent of packages by one to two days.

The new FCPS service standards also allow some packages to be shipped by ground transportation, “which is more reliable and affordable compared to air transportation,” according to the Postal Service.

“Modifying select service standards is a key growth element and enabler of our 10-year plan. This action will contribute to our cost savings efforts and improve our reliability across all product classes, including our growing package market ,” Postmaster General Louis DeJoy said at the time. “By implementing the elements of our 10-year plan, we will deliver the consistent, reliable service that the American people and our customers expect and deserve and grow package volume, spurring revenue growth that can be invested back into the Postal Service.”

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The Postal Service just announced more new plans for these packages. On Feb. 10, the agency filed a proposal with the Postal Regulatory Commission (PRC) to get rid of its entire existing FCPS category altogether. According to a press release, the USPS is looking to replace this service with a new offering called USPS Ground Advantage.

“USPS Ground Advantage will feature two-to five day service standards for packages up to 70 pounds,” the agency said in its news release, adding that the new shipping offering has an “anticipated summer 2023 launch.”

In its PRC filing, the USPS gave a more exact date for when it is planning to implement this new change: “The Postal Service expects that its retail and commercial customers will all benefit from this consolidated ground package offering , which beginning on July 9, 2023, will be known as USPS Ground Advantage.”

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The USPS has been working to simplify shipping product offerings since last year. On Oct. 28, the PRC “granted approval” for the agency to incorporate both its Retail Ground and Parcel Ground shipping options into one enhanced FCPS product . As part of the Postal Service’s “overall strategy to enhance its shipping offerings,” the agency’s newest filing with the PRC is a continuation of these efforts.

“The filing streamlines and simplifies package shipping options for customers and enhances the Postal Service’s ground product offering,” the agency explained. “USPS Retail Ground, Parcel Select Ground, and First-Class Package Service will be incorporated into USPS Ground Advantage.”

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The Postal Service has raised prices for customers time and time again with its changes over the past two years. But the introduction of USPS Ground Advantage is not likely to involve a price hike, as this “product is aimed at shippers willing to sacrifice speed for price,” according to FreightWaves.

“It is also intended for users of the Postal Service’s Priority Mail service, who need two- to three-day transit times but don’t want to pay Priority Mail’s pound-based prices,” the news outlet further explained.

The USPS said it has been “focused on improving its package offerings” by lowering shipping prices. In Jan. 2022, the Postal Service lowered the average shipping rates for USPS Retail Ground products by 7 percent, and rates for Parcel Select Ground by 12 percent. Now, rates are in the process of “being established for USPS Ground Advantage,” the Postal Service said in its PRC filing.

The agency is looking at rates that “are designed to closely align with existing ground package rates established in January 2023,” although changes could be made to these proposed rates at the USPS Board of Governors meeting in May.

USPS Just Raised Prices Again—And It’s Already Planning the Next Price Hike

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It seems like we’re having to pay more for everything these days—and that includes our mail. The U.S. Postal Service (USPS) has been struggling financially for years now. To change course, the agency unveiled its Delivering for America (DFA) initiative in 2021 with the goal of reaching financial sustainability again within the next 10 years. And unfortunately for us, part of the plan includes price hikes for customers. The USPS just raised its prices on Jan. 22—and it’s already planning the next price hike. Read on to find out what you should be prepared for.

READ THIS NEXT: USPS Is Getting Rid of This Permanently, as of Jan. 31 .

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Just two months after introducing its DFA plan, the USPS had already announced plans to raise prices. In May 2021, the agency said that it had filed notice with the Postal Regulatory Commission (PRC) to “raise overall Market Dominant product and service prices by approximately 6.9 percent” later that year. The PRC approved the price hike, and it kicked in officially on Aug. 29, 2021.

Since then, customers have seen mailing costs climb again and again. In July 2022, the Postal Service raised its First-Class Mail prices by approximately 6.5 percent. Then just a few months later, the agency increased prices yet again: On Oct. 2, “a temporary price adjustment for key package products for the 2022 peak holiday season” went into effect. “This temporary rate adjustment is similar to ones in past years that help cover extra handling costs to ensure a successful peak season,” the USPS explained.

Now, however, the agency is back to more permanent price hikes.

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The temporary price hike for the 2022 holiday season expired on Jan. 22, but it coincided with a more permanent change. Back in October, the Postal Service announced that it had filed plans with the PRC for “new prices for 2023.” The commission approved the new rates , which went into effect on Jan. 22 and increased First-Class Mail prices by approximately 4.2 percent.

The USPS also raised prices for P.O. Box rentals and shipping services that same day. “As operating expenses continue to rise, these price adjustments provide the Postal Service with much needed revenue to achieve the financial stability sought by its Delivering for America 10-year plan,” the agency said.

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With the newest price increase, customers are now paying three to five cents more for mailing essentials like postcards, letters, and First-Class Forever stamps. And that’s likely not the last time we’ll see price hikes this year. Instead, officials say that customers should expect another increase this summer.

“The Postal Service expects that, in each subsequent year, it will implement price changes for all Market Dominant classes in January and July of such year,” the PRC said, per USA Today .

The USPS confirmed this timeline for price hikes in a Sept. 2021 press release. “Beginning Jan. 2023, Market Dominant price adjustments will occur twice a year, (e.g. Jan. 2023, July 2023, Jan. 2024, July 2024, etc.),” the agency said. “Market Dominant products include First-Class Mail (FCM), USPS Marketing Mail, Periodicals, Package Services, and Special Services.”

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These regular price increases are starting to add up for USPS customers. For example, stamp prices are now about 15 percent more expensive than what they were prior to 2021, and they have nearly doubled from the 33 cents they cost in 2000, Money magazine reported.

But Postmaster General Louis DeJoy has stood by the Postal Service’s soaring prices and made it clear that he has no plans to stop the hikes anytime soon.

“I believe we have been severely damaged by at least 10 years of a defective pricing model —which cannot be satisfied by one or two annual price increases—especially in this inflationary environment,” DeJoy said during a 2022 Postal Service Board of Governors meeting. “From my perspective, the mailing industry needs to be prepared for continued use of our authority to raise prices on market dominant products at an uncomfortable rate until such time as we have accomplished our objective of projecting a trajectory that shows us becoming self-sustaining—as required by law.”