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USPS: Increased Prices of Stamps and Envelopes


  • The United States Postal Service increased the prices of stamps, envelopes, and boxes on Jan. 27.


  • The prices of those products jumped by several cents, but some shipments will become cheaper due to other changes.


  • For Forever stamps, it's the USPS' largest-ever price increase.


  • Analysts estimated that the price change, announced in October, could cost Amazon up to $1.1 billion. UPS and FedEx may also experience a hit.


The United States Postal Service just hiked the prices of Forever stamps by a record amount. The prices for envelopes and boxes also went up.  

That will increase how much you pay at the post office, but it's slated to also affect the bottom lines at logistics companies and e-commerce giants like Amazon.

USPS' price change might cost Amazon anywhere from $400 million to $1.1 billion, Credit Suisse said when the price jump was announced in October. UPS and FedEx also use USPS delivery services, and could experience a hit as USPS bumps its prices.

"The Governors (of the Postal Service) believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue," USPS said in the October announcement.

Forever stamps went from 50 cents to 55 cents, though mailing additional announces now cost 15 cents instead of 21 cents. Flat rate boxes are up by 70 cents to $1.05, and padded and regular flat rate envelopes also increased by nearly a dollar. More detailed information on price changes can be found on the USPS website.

In total, mailing services increased by 2.5%. Forever stamps jumped by 10%. The USPS reassess its prices every year and often increases the cost of certain goods, a USPS spokesperson told Business Insider. The prices "are primarily adjusted according to market conditions," USPS said.

The USPS lost $3.9 billion in fiscal year 2018, according to a December 4 report from the Task Force on the United States Postal System. Its cumulative losses are nearing $70 billion.

(Source: Business Insider, January 28, 2019)

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