US Postal Service Increases Postage to 82 Cents to Cover Losses

The United States Postal Service (USPS) has implemented multiple postage adjustments starting from July 12th, with an overall price increase of 4.8% for postal services in the United States. One of the most notable changes is the increase in the price of the First-Class Mail Forever stamp from 78 cents to 82 cents.

According to the new prices released by USPS, the price of a one-ounce domestic regular letter (Letters) with a Forever stamp has been raised by 4 cents, from 78 cents to 82 cents; the price of metered letters has increased from 74 cents to 78 cents; the price of domestic postcards has been adjusted from 61 cents to 65 cents; and the postage for international one-ounce letters and postcards has been raised from $1.70 to $1.75.

In recent years, due to a decline in traditional mail volume and rising operational costs, the United States Postal Service is facing long-term financial pressure. Last month, USPS Postmaster General David Steiner informed Congress that the agency has incurred net losses of around $120 billion since 2007, signaling underlying problems in its business model that require legislative assistance to address.

Reuters reported that First-Class Mail is the most profitable product for the Postal Service, but with the digitalization of communication methods, its mail volume has decreased to levels seen in the 1960s. Despite this decline, the institution still needs to maintain its costly national delivery operations.

USPS postage rates are not uniform across the board. In addition to the retail prices paid by consumers at post office counters, eligible businesses and users sending mail through certain online postage platforms typically benefit from commercial prices.

Commercial prices apply to senders who purchase postage through USPS’s official online service, Click-N-Ship, or authorized third-party postage platforms such as Pirate Ship, Stamps.com, and others. These prices, set by USPS, are not independently determined by third-party platforms.

For instance, when USPS adjusted parcel service prices in January, Stamps.com’s breakdown showed that, except for Priority Mail Express, prices for other services on its platform had actually decreased. For example, the average price for Priority Mail Flat Rate had decreased by approximately 0.5%, and some commercial users could obtain more favorable postage rates than the retail prices.

This exemplifies the disparities in postage costs based on the mailing channel used. For businesses or individuals frequently sending packages, opting for eligible commercial channels may be more cost-effective than mailing directly at the post office counter.

In recent years, USPS has continued to raise regular mail postage rates. The price of Forever stamps has increased from 66 cents in July 2023, subsequently rising to 68 cents, 73 cents, 78 cents, and now up to 82 cents. Steiner believes that even if the postage for regular letters were to increase to 90 cents or 95 cents, Americans might still be willing to accept it, considering that in many countries worldwide, the postage for regular letters has reached $2 or even higher.

Analysts note that these price adjustments align with the direction of its “Delivering for America” ten-year reform plan aimed at improving financial sustainability. Launched in 2021, the plan seeks to enhance operational efficiency, modernize logistics networks, and improve the long-term financial health of postal services.

However, specific postage adjustments still need to follow the prescribed procedures, proposing plans and gaining approval from the Postal Regulatory Commission, rather than being directly determined by the reform plan.

For more information on price changes, please visit the USPS website’s Mailing and Shipping Prices page.