USPS rate hikes.

[foster9]

Once again we sellers will feel a squeeze (although slight for many) from rate hikes by USPS.

USPS seems to like these bi-annual/regular increases.

[ed8108]

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@foster9 wrote:

USPS seems to like these bi-annual/regular increases.

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USPS like us , have to pay their bills

[johnrj1226]

 All costs (and cost increases) plus you expected profit margins in selling  items  are  paid by the  buyer  - simple solution raise the prices  accordingly unless you wish to be an ONFPO   >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>Obviously NotForProfitOrganization

Bought  a new Olds 442 in 1968 for $3600 out the door in 1980 it  was in the  7K+ neighborhood  depending  how you decked it out = the effects of inflation in the roaring 70s and early 80s.

The USPS has been operating at  multi billion dollar loss over many years due to various factors mainly how they fund the retirement program, the US tax payers picks up the losses every year.  In recent  years  they   have  had rate increases and cost reductions to minimize the burden.  For example in 2023 USPS lost 6.5 billion dollars after projecting they would break even.  And 2024 first  quarter  a loss of $2 billion.  Not a pretty picture and  a gloomy future.  Government controlled entities know  how to spend  $$ real good with no accountability to make $$ or even breakeven.  Something is wrong in the neighborhood I say

[jg.mason]

Why is it only effecting certain zip codes?

[fbusoni]

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@jg.mason wrote:

Why is it only effecting certain zip codes?

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If these rate hikes are affecting mostly rural locations (which seems to be the case from what I have read here), perhaps its because it's not cost effective to send a truck out to the middle of nowhere to deliver a single package. 

Maybe USPS is bundling deliveries for such locations.   Or maybe trying to discourage deliveries to such locations in the first place.   

If there is an official USPS announcement available, it could provide clues.

[fbusoni]

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@foster9 wrote:

Once again we sellers will feel a squeeze (although slight for many) from rate hikes by USPS.

USPS seems to like these bi-annual/regular increases.

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More importantly, it seems to me, Americans like to receive their mail expeditiously.

The other day I sent a book media mail from Virginia to Idaho.   It took slightly more than 48 hours to arrive. 

Not too shabby, in my opinion.

And more to the point (IMHO) -- sellers should be making sufficient profit to easily absorb these small rate hikes.   The cost of doing business is a variable that cannot and should not be ignored.

PS: Since the last USPS rate hike, I've noticed that using ground advantage (with $100 insurance built in) is often less expensive than using media mail.   I reckon it all averages out.

[dbfolks166mt]

     Are you talking about the January or the July increases? Agree with others comments regarding USPS. They attempt to operate like a business but are constrained and controlled by Congress with regards to the rates they can charge. Since I use calculated shipping on my listings the buyer actually is the one absorbing the cost increase.

     From a bigger perspective USPS rates are cheaper than a LOT of countries. One example of the cost of first class postage in the US compared to Europe. For packages the disparity is often greater. Of course there is the opposite end of the spectrum where Chinese sellers pay literally nothing to ship items because the government subsidizes postage costs. 

[baantiques]

I've had people complain about my shipping rates but what can you do?  I try to keep them as low as possible for as long as I can but eventually I have no choice.

[the-hook-and-the-loop]

Some good news is that UPS and FedEx have been offering competitive rates I noticed(within pennies) on smaller parcels. 

[mantle1951]

Buyers will have to adjust to paying a bit more. 

[dolcetreasures]

🤣 I’ve never seen a forum where the posters are always justifying every action by corporate and business entities. It’s comical. The usps is a bottomless pit, endlessly raising rates will not improve their bottom line. I’m glad you all enjoy paying more. 

[ed8108]

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@mantle1951 wrote:

Buyers will have to adjust to paying a bit more. 

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Will sellers have to adjust to selling fewer items ?

[kountrykreations2017]

Welcome to inflation and wasteful govt spending. USPS is not the govt but is govt run and funded. Though as sellers we can see that they make way more than enough to operate at a profit if it was run correctly.  Just goes to show the quickest way to run a service or business into the ground is to let the govt get their hands on it.

[richard1rst]

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@dolcetreasures wrote:

🤣I’ve never seen a forum where the posters are always justifying every action by corporate and business entities. It’s comical.

Explaining how or why something was done in no way justifies the action. It only explains it to those who do not understand it.

I can explain how Socialism works but I would never want to live under it.

[richard1rst]

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@ed8108 wrote:

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@mantle1951 wrote:

Buyers will have to adjust to paying a bit more. 

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Will sellers have to adjust to selling fewer items ?

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That's the wrong focus.

Given the choice between selling one $200 item or 10 $15 items which is really the better choice.