Higher Holiday Shipping Costs Ahead As USPS Plans Another "Temporary" Seasonal Rate Hike
UPDATE 9-12-25
The Postal Regulatory Commission has unsurprisingly approved this "temporary" holiday rate increase but notably, the Public Representative called it a method by which USPS extracts revenues “by twisting the financial screws on the wallets of holiday participants”, adding that he hoped the Postal Service could focus more on reducing costs.
The Public Representative states that he reviewed the Postal Service’s filing, including the information filed under seal, and concludes that the proposed prices should generate sufficient revenue to satisfy 39 U.S.C. § 3633(a).
He expresses appreciation that the Postal Service filed notice of the time limited price changes with substantial time prior to the implementation date to allow stakeholders to better prepare and for the Commission to conduct a satisfactory review.
He notes that the proposed time-limited price increases are higher this year for Priority Mail Express and Priority Mail than last year while Parcel Select and USPS Ground Advantage are experiencing lower price increases than previously.
He expressed concern that consumers are experiencing another price increase only 84 days after standard price increases on July 13, 2025.7 He states that he continues to dislike time-limited price increases and maintains that the revenues accrued throughout the rest of the year should be sufficient to cover the additional costs presented around the holidays.
He states that he “hopes the Postal Service can find ways towards financial security that focus more on reducing costs, rather than on extracting revenues by twisting the financial screws on the wallets of holiday participants.”
The US Postal Service plans to hike prices for the holidays once again, announcing proposed "temporary" rate increases will take effect from October 5th through January 18th, pending approval by the Postal Regulatory Commission.
USPS said in a press release that the peak holiday season pricing is necessary to "bring prices for the Postal Service’s retail and commercial customers in line with competitive practices" as part of the Delivering For America plan.
The planned price changes include:
Retail:
Priority Mail and USPS Ground Advantage: Zone 1-4
- $0.40 cents increase for Zones 1-4, 0-3 lbs.
- $0.60 cents increase for Zones 1-4, 4-10 lbs.
- $0.95 cents increase for Zones 1-4, 11-25 lbs.
- $3.00 increase for Zones 1-4, 26-70 lbs.
Priority Mail Zone 5-9
- $0.90 cents increase for Zones 5-9, 0-3 lbs.
- $1.45 cents increase for Zones 5-9, 4-10 lbs.
- $3.25 increase for Zones 5-9, 11-25 lbs.
- $7.00 increase for Zones 5-9, 26-70 lbs.
Priority Mail Flat Rate
- $1.45 for Large Flat Rate Boxes
- $0.90 for all other Flat Rate Products
USPS Ground Advantage Zone 5-9
- $0.50 cents increase for Zones 5-9, 0-3 lbs.
- $1.00 cents increase for Zones 5-9, 4-10 lbs.
- $2.00 increase for Zones 5-9, 11-25 lbs.
- $5.75 increase for Zones 5-9, 26-70 lbs.
Priority Mail Express
- $1.10 increase for Zones 1-4, 0-3 lbs.
- $2.00 increase for Zones 5-9, 0-3 lbs.
- $2.00 increase for Zones 1-4, 4-10 lbs.
- $4.85 increase for Zones 5-9, 4-10 lbs.
- $3.90 increase for Zones 1-4, 11-25 lbs.
- $9.00 increase for Zones 5-9, 11-25 lbs.
- $9.75 increase for Zones 1-4, 26-70 lbs.
- $16.00 increase for Zones 5-9, 26-70 lbs.
Priority Mail Express Flat Rate
- $2.00 increase for Flat Rate Envelopes
Commercial:
Priority Mail and USPS Ground Advantage: Zone 1-4, and Parcel Select (all entries)
- $0.30 cents increase for Zones 1-4, 0-3 lbs.
- $0.45 cents increase for Zones 1-4, 4-10 lbs.
- $0.75 cents increase for Zones 1-4, 11-25 lbs.
- $3.00 increase for Zones 1-4, 26-70 lbs.
Priority Mail Zone 5-9
- $0.70 cents increase for Zones 5-9, 0-3 lbs.
- $1.25 increase for Zones 5-9, 4-10 lbs.
- $2.75 increase for Zones 5-9, 11-25 lbs.
- $6.50 increase for Zones 5-9, 26-70 lbs.
Priority Mail Flat Rate
- $1.25 for Large Flat Rate Boxes
- $0.70 for all other Flat Rate Products
USPS Ground Advantage Zone 5-9
- $0.35 cents increase for Zones 5-9, 0-3 lbs.
- $0.75 cents increase for Zones 5-9, 4-10 lbs.
- $1.25 increase for Zones 5-9, 11-25 lbs.
- $5.50 increase for Zones 5-9, 26-70 lbs.
Priority Mail Express:
- $1.00 increase for Zones 1-4, 0-3 lbs.
- $1.75 increase for Zones 5-9, 0-3 lbs.
- $1.50 increase for Zones 1-4, 4-10 lbs.
- $3.95 increase for Zones 5-9, 4-10 lbs.
- $3.50 increase for Zones 1-4, 11-25 lbs.
- $7.50 increase for Zones 5-9, 11-25 lbs.
- $8.95 increase for Zones 1-4, 26-70 lbs.
- $13.00 increase for Zones 5-9, 26-70 lbs.
Priority Mail Express Flat Rate
- $1.75 for Flat Rate Envelopes
The announcement comes as new Postmaster General David Steiner is under renewed pressure to abandon the Delivering for America Plan after USPS continues to show increasing losses in quarterly financial reports.
Liz Morton
Nonprofit advocacy group Keep Us Posted and others have been urging support for the “USPS Services Enhancement and Regulatory Viability Expansion and Sustainability for the U.S. Act” (or USPS SERVES US Act).
The bill, introduced by Congressman Sam Graves (R-Mo.), would give the Postal Regulatory Commission the power to stop onerous stamp hikes and mail delays, limit price increases to once per-year, and institute other reforms aimed at accountability, efficiency and success like creating an autonomous Office of Customer Advocate to hear Americans’ concerns and protect the public.
While that bill is still far from being enacted into law, the Postal Regulatory Commission is also considering a proposed rule, filed in June, which would limit USPS to only raising prices once per year.
Under this proposal, USPS would be limited to no more than one price adjustment of general applicability for market dominant products “per fiscal year from October 1, 2025, through October 1, 2030, unless such rate adjustment filings only include rate decreases or are de minimis [minimal] increases.”
However, it's important to note that would only affect market dominant products (which would include First Class Mail, Marketing Mail, Periodicals, Media Mail and Bound Printed Matter) but it would not apply to competitive products like Ground Advantage, Priority, or Priority Express services.
So while that rule change would be a welcome reprieve for many Postal Service customers across the country, it likely wouldn't make much difference to the majority of online sellers who are more likely to be using one of those competitive offerings.
It's also important to note that while the rate hike is billed as being "temporary" historically USPS has often made at least some of the "temporary" holiday prices permanent with another announcement shortly following the expiration date.
And as usual, sellers will also have to consider the costs of fees on the increasing shipping as well since eBay, Etsy and other marketplaces charge their selling fees on the total including shipping - which means any time there's a shipping increase, it's a de facto revenue and GMV windfall for the marketplaces too.
How will this proposed holiday USPS rate increase impact your online business? Should USPS be limited to one rate hike per year and should that extended to competitive products as well? Let us know your thoughts in the comments below!
