Business Strategy, Small Business

The Cost of a Stamp in 2021 (Updated July 2021)

As we reported in one of our previous blog posts, the US Post Office plans on increasing its mail and shipping rates for the second time this year. These new rates, if adopted, will go into effect beginning on Sunday, August 29, 2021.

With the addition of USPS, FedEx and UPS have already increased their prices for 2021. The rate increases for both FedEx and UPS have already gone into effect with prices increasing by 4.9% for both carriers. These prices went into effect on January 4th, 2021 and December 27th, 2020, respectively.

While FedEx and UPS have substantial rate increases to all of their services, not all postal rate types will be affected. However, the majority of rate types will be impacted by the increase, some seeing a higher increase than others, with specific rates reaching hikes of 10.8%.

Despite the price of postage increasing for all three major mail carrier companies, there is some good news:

Here is a look at some examples of rate changes happening later this month for the most common USPS postal services:

Price Changes for Stamps, Letter Postage, Postcards, and International Mail

Postage Current Price Proposed Price to Begin Aug. 29, 2021
First-Class Mail letter (1 oz.) $0.55 $0.58
Each additional ounce $0.20 $0.20 (unchanged)
Letters (metered, 1 oz.) $0.51 $0.53
Flats (1 oz.) $1 $1.16
Each additional ounce $0.20 $0.20
International Letters (1 oz.) $1.20 $1.30
Postcard stamp $0.36 $0.40

In addition to these price changes, Media Mail rates will also increase this August by 10.8%

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Previous Changes in Mail and Shipping Rates

As you may know, the US Post Office increased its mail and shipping rates on a number of its services earlier this year. According to USPS, the price of postage increasing will help “keep the Postal Service competitive while providing the agency with needed revenue.” These new rates went into effect beginning on January 24, 2021.

Price Changes in Priority Mail Flat Rates

Flat-Rate Product Price Since Jan. 24, 2021
Small Flat-Rate Box $8.45
Medium Flat-Rate Box $15.50
Large Flat-Rate Box $21.90
APO/FPO Large Flat-Rate Box $20.40
Regular Flat-Rate Envelope $7.95
Legal Flat-Rate Envelope $8.25
Padded Flat-Rate Envelope $8.55

Priority mail flat rates will so far remain unchanged since the price change in January. Earlier this year, postage rates in this class increased an average of 3.5% from 2020 to 2021.

In addition to Priority Mail Flat Rates, other rates that saw an increase earlier this year that remain unchanged include:

  • Priority Mail per-pound package rates increased by 3.6%
  • Priority Mail Express per-pound packages increased by an average of 2.5%
  • First-Class Package International Service (FCPIS) prices went up 4.8% (per-pound rates varying by country)
  • International Priority Mail rates will increased by 5.1% percent (Canada, UK, and Australia)
  • International Priority Mail Express per-pound packages increased by 3.6% (Canada, UK, and Australia)

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