What Goes Into Shipping Fees? USPS Announces Rate Increases for 2016

Who doesn't love free shipping? I know I do! (And we offer free shipping to all repeat customers.) Postage costs, however, continue to rise. The Post Office has just announced its proposed rate increases for 2016. Some rates will go up as much as 15.6%.

Unfortunately, Marion's Mittens customers will be impacted by the increases. Here's a summary of increases for domestic (USA) customers:

• Small flat rate boxes will increase from $5.25 to $6.10. We use these to ship pompom garlands and some mini mittens sets.
• Priority Mail costs will increase by 9.4%. If you want your package faster, it will cost anywhere from $0.55 to $5.66 more.
• First Class Mail costs will increase by 12.6%. The Post Office is raising rates by up to $0.56 per package. 

The First Class Mail increase may seem minimal, but it has the biggest impact on our customers; most of our items are shipped First Class. Commercial discounting for this service is also being eliminated, so we will no longer be able to pass on savings of up to $1.00 per package to you. 

We are already doing what we can to minimize shipping costs. We use relatively inexpensive, lightweight poly mailers to stay within the weight limits of First Class. The Post Office is increasing the First Class weight limit from 13 to 16 ounces in 2016; Etsy has already been offering First Class rates in this weight range.

Also important to note is that the cost for the Priority Mail Express option is increasing by 15.6%. Customers rarely choose this at checkout because it is so pricey. You should know, however, that this and overnight are the ONLY shipping options for which the Post Office will guarantee delivery times. Although the PO quotes delivery times of 2-9 days for First Class and 1-3 days for Priority, I have been informed that they are simply estimates. 

What about our international customers? If you choose First Class International at checkout, you'll pay an average of 21.6% more. Expect to pay 10.2% more for Priority Mail International.

Although these rate increases seem steep, it seems like most domestic customers will pay no more than $1.00 extra. The average cost to ship a pair of mittens via First Class in 2015 was less than $3.00; I'm confident the price will  be under $4.00 for 2016. That's still not too bad considering many online retailers charge a minimum of $8.00 per package.