USPS Postage Rate Increases for 2021

USPS Postage Rate Increases for 2021

The United States Postal Service (USPS) initiated new postage rates that went into effect on January 24, 2021. The Postal Regulatory Commission (PRC) approved and finalized these rates after the USPS announced them on October 9, 2020. With that, the USPS postage rate has once again increased.

These price increases are usually based on the Consumer Price Index (CPI). The U.S. Bureau of Labor Statistics defines this as a “measure of the average change over time in the prices paid by consumers for a market of consumer goods and services.” In other words, the more people pay for their products, the higher the postage rates.

Consumer means often fund operating costs due to the USPS not receiving tax dollars for operating expenses. This year’s unexpected situations threw the USPS for a loop. More of the population went online shopping due to the COVID-19 pandemic. The November election processed millions of mail-in ballots. The holiday season had shoppers sending millions more packages than ever before. Many intended recipients have still not received their packages due to the overwhelming volume.

The USPS states that prices are adjusted according to “market conditions.” The market conditions described above contribute to a rise in demand for services and explain why changes in postal rates occur.

Changes in postage rates for each passing year are not a new phenomenon. Understanding why these rates change, however, is good for us to review every year.

We have listed below some of the highlights of the 2021 USPS rate increase for customers buying postage online for domestic letters and packages.

First-Class Mail Single-Piece Prices

1.831% overall increase
First-Class Mail Single Piece Prices2020 Prices2021 PricesPercent Change
Stamp Price 1 oz..55.550.0%
Single-Piece Additional Ounce - Letters.15.2033.3%
Single-Piece Additional Ounce - Flats.20.200%
Meter Price 1 oz..50.512%
Single-Piece Flats 1 oz.1.001.000%
Single-Piece Cards.35.362.85%

First-Class Mail Commercial Prices

1.831% overall increase
*Flats priced at 2 oz.
First-Class Mail Commercial Prices2020 Prices2021 PricesPercent Change
Mixed AADC Automation Letters.439.452.5%
AADC Automation Letters.419.4282.15%
5-Digit Automation Letters.391.3981.79%
Mixed ADC Automation Flats*.916.9746.33%
3-Digit Automation Flats*.777.8185.28%
5-Digit Automation Flats.630.664.76%

USPS Marketing Mail

1.509% overall increase

ProductPercent Change
Carrier Route Letters, Flats, and Parcels3.529%
High Density / Saturation Letters2.373%
High Density / Saturation Flats and Parcels0.989%
EDDM - Retail0.524%

USPS Marketing Mail Commercial Origin Prices

Commercial Origin Prices2020 Prices2021 PricesPercent Change
Carrier Route.302.296-1.99%
High Density / Saturation Letters.191.1910%
High Density / Saturation Flats.224.25815.18%
EDDM - Retail.191.1920.52%

USPS Marketing Mail Non-Profit Origin Prices

Non-Profit Origin Prices2020 Prices2021 PricesPercent Change
Carrier Route.218.210-3.67
High Density / Saturation Letters.111.1110%
High Density / Saturation Flats.136.16823.53%

USPS Marketing Mail Commercial Auto Letters

Commercial Auto Letters2020 Prices2021 PricesPercent Change
Mixed Origin.299.3041.67%
5-Digit Origin.259.2590%
5-Digit DNDC.239.2390%
5-Digit DSCF.233.2350.86%
High Density DSCF.186.1965.38%
Saturation Origin.191.1910%
Saturation DNDC.172.1720%
Saturation DSCF.168.1680%

USPS Marketing Mail Non-Profit Auto Letters

Non-Profit Auto Letters2020 Prices2021 PricesPercent Change
Mixed Origin.178.1832.81%
5-Digit Origin.138.1380%
5-Digit DNDC.118.1180%
5-Digit DSCF.112.1141.79%
High Density DSCF.101.118.91%
Saturation Origin.111.1110%
Saturation DNDC.092.0920%
Saturation DSCF.088.0880%

USPS Marketing Mail Commercial Auto Flats

Commercial Auto Flats2020 Prices2021 PricesPercent Change
5-Digit DSCF.364.3722.28%
C-R Basic DSCF.265.2743.4%
C-R on 5-Digit DSCF Pallets.246.2532.85%
C-R on 5-Digit DDU Pallet.235.2464.68%
High Density DSCF (125 Pieces).205.2133.90%
High Density DSCF (300 Pieces).187.1870%
Saturation DSCF (90%).179.1790%
Saturation DDU.163.1630%

Industry News

February 26, 2021

(1 min. read)