Have Shipping Fees Gone Up? Comparing 10 Years Ago and Today

Have you noticed that shipping anything from the post office today costs a lot more than it did ten years ago? You’re not imagining it. Like nearly every other good or service, the price to mail a letter or package has increased significantly since 2014.

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Here’s a comparison of shipping costs then and now, so you can see how much of an impact the price hike really has on your wallet . Plus, take a look at why sending mail has gotten so much more expensive, some alternative shipping methods to consider and insight into the state of the shipping industry. That way, you can be an informed consumer.

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What You Paid in 2014

In January 2014, you paid $0.34 to mail a postcard and $0.49 to mail a standard letter domestically.

Robert Khachatryan, CEO and founder of Freight Right Global Logistics , said, “The starting cost to ship a standard parcel [in 2014] was around $5.60 according to USPS rates.”

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What You’re Paying Now

Several price increases have occurred over the last ten years. As of mid-July 2024, it costs $0.56 to mail a postcard and $0.73 to mail a standard letter domestically — a roughly 65% and 49% jump, respectively.

Today, the cheapest way to ship a package is via Priority Mail with a flat-rate envelope measuring 12.5 by 9.5 inches or smaller. Mailing that size package at that speed will run $9.85, which is approximately 76% higher than it was to ship a standard parcel a decade ago.

The Impact of the Price Increase

So, what do these price increases mean for your finances? That depends on the volume of mail and packages you send out.

If you rarely buy stamps and only ship a couple of small parcels during the holiday season, the current post office rates likely won’t strain your budget . However, you may feel the pinch if you mail a check to pay every bill or run a small business that often mails goods to customers.

For example, say you bought ten stamps per month in 2014 for $4.90. That year, you spent $58.80 to mail letters. Fast forward to today, and your annual cost jumps to $87.60 to send those same envelopes.

Shipping packages will put an even bigger dent in your bank account. For instance, if you mailed 20 standard parcels per month in 2014, you paid a total of $1,344 for the year. Now, you’d pay $2,364 to ship the same packages.

Why the Price Has Jumped

When asked why shipping costs have risen so dramatically over the last decade, Khachatryan offered several co-occurring reasons:

• A sharp increase in fuel prices: While transportation costs are typically higher on the West Coast, the entire nation has seen expensive gas. Fuel costs nearly $0.20 more per gallon now than in January 2014. Plus, we saw a hike to $5 per gallon or more in June 2022.
• A steep jump in labor costs: Khachatryan said, “Wages in the transportation sector have risen notably. In 2022, 15.8 million people — 10.4% of the U.S. labor force — worked in transportation, warehousing and related industries — a 5.0% increase from 2021.”
• New industry rules: “Stricter environmental regulations have led to investments in cleaner, more expensive technology,” said Khachatryan.
• Infrastructure investments: “Carriers have heavily invested in infrastructure improvements, passing these costs on to consumers,” Khachatryan said.

The Consumer’s Response

“The rise in shipping costs has led many consumers and businesses to reduce the volume of goods they ship,” Khachatryan said. “This shift often means prioritizing essential shipments, seeking alternative shipping methods or renegotiating terms with providers. Consequently, there’s been a noticeable decline in shipping activity as increased expenses necessitate a more selective approach to transporting goods.

“Many have turned to private carriers like UPS and FedEx, as well as regional couriers. By switching, businesses and consumers can save significantly on shipping costs. [For example], for larger packages, UPS typically provides more cost-effective international shipping options,” Khachatryan continued.

However, while post office prices have soared in recent years, the United States Postal Service (USPS) may still be your best bet in select scenarios.

“[For instance], for packages under one pound, USPS Retail Ground or USPS First Class Package are the most affordable options. For smaller packages, USPS often offers cheaper international shipping rates than UPS, though delivery times are longer,” said Khachatryan.

The Overall State of the Shipping Industry

“Despite rising costs, e-commerce continues to grow, driving innovation in logistics and fulfillment strategies. Companies are using technology to optimize shipping routes and reduce costs, mitigating some of the impact of price increases,” said Khachatryan.

This article originally appeared on GOBankingRates.com : Have Shipping Fees Gone Up? Comparing 10 Years Ago and Today