The US Postal Service and Postal Regulatory Commission have approved a rate increase to take effect on January 21, 2018. The increase will affect several of our direct mail customers who regularly use 1st Class, Standard Mail (now known as USPS Marketing Mail) and Bound Printed Matter postage. Rate updates can be found on the USPS website.

The expected increase is as follows:

  • 1st Class postage – price increase should average 1.9%
  • 1st Class Forever stamp –will increase from $.49 to $.50
  • Non profit rate – will increase from 4.4% to 6.9%
  • Bound Printed Matter – will experience a 1 to 3% overall increase.
  • NDC and SCF discounting will be reduced from $.02 to $.016.
  • Priority Mail and Parcel Select prices increase between 4.9% and 7%.
  • International Shipping prices should increase on average of 3.9%.

Some additional changes happening in 2018 include a rate increase for both FedEx and UPS. FedEx is reporting a 4.9% increase effective January 1, 2018. UPS raised their rate on average of 4.9% during December 2017.

Lastly, shifts are also occurring to tolerance levels for noncompliant mail. Basically, the threshold for any bulk mail deemed undeliverable was once 30% and will be significantly reduced to .5%(that is ½ of a percent) and will also experience an assessment rate increase from $.07 to $.08. The importance of having CASS and Move Update software updated and accurate becomes even more critical. For all of these changes explained, view the filings made by the Postal Regulatory Commission.

For questions about these rate changes and how it may relate to your direct mail campaigns in 2018, contact us. As pros in the world of mail, we’ve got your back!