I'm Going To Let You In On A Secret: How USPS Shipping Hikes Are Impacting Your Wallet

It's no secret that online shopping has become the norm for many of us. With just a few clicks, we can have virtually anything delivered to our doorstep. This convenience, however, often masks a significant financial reality: the rising cost of shipping. Over the past six years, the United States Postal Service (USPS) has quietly but consistently increased its rates, and while you might not be sending many packages yourself, these increases are likely impacting your everyday purchases more than you realize.

For most consumers, the act of shipping a package is a rare occurrence. Think about it: when was the last time you went to the post office to mail something other than a holiday card or a return? The vast majority of our interactions with shipping services are on the receiving end, as products arrive from online retailers. This shift in consumer behavior has created a blind spot when it comes to shipping costs. We're more concerned with the final price of an item and whether "free shipping" is offered than with the underlying logistics expenses.

This "free shipping" illusion is often just that – an illusion. Retailers aren't absorbing these costs entirely; they're simply building them into the product's price, or offering "free shipping" only after a certain spending threshold. So, while you might feel like you're getting a deal, you're still indirectly bearing the brunt of the escalating shipping fees.

Etsy gives priority in search results to shops that offer free shipping, particularly for orders over $35. This powerful incentive means that if a seller wants their handmade goods to be seen by potential buyers, they feel pressured to offer this "free" option. They're forced to do what is a standard practice on the platform and what Etsy encourages: build the shipping cost directly into the item's price.

It's a clever strategy that benefits the marketplace by boosting conversions and making it more competitive with e-commerce giants like Amazon. But for the end consumer, it simply means the cost is hidden. It's a premium paid for convenience, a subtle yet significant factor in the overall cost of living.

The USPS has implemented a series of price adjustments across various mail and shipping services over the past half-dozen years. These aren't minor tweaks; they're substantial increases that add up over time.

For instance, the price of a First-Class Mail Forever stamp has steadily climbed, with multiple increases since 2019. In July 2025 alone, it went from 73 cents to 78 cents. While stamps might seem like a small detail, they reflect a broader trend.

More significantly for online purchases, shipping services like Priority Mail and Ground Advantage have seen considerable jumps. For example, recent changes (July 2025) have seen Priority Mail rates increase by an average of 6.3% and Ground Advantage by 7.1%. Some Priority Mail shipments have even seen double-digit percentage increases, with certain cases jumping as much as 51%! These consistent, often multi-percentage-point hikes each year accumulate, creating a much higher base cost than what existed just a few years ago.

So, how do these USPS increases affect the price of that new gadget, piece of clothing, or household item you're eyeing online? It's a classic case of a domino effect.

Businesses, especially small and medium-sized e-commerce sellers, are directly impacted by higher shipping costs. For many, shipping is a significant operational expense. To maintain profit margins, businesses are forced to pass these increased costs on to the consumer. 

This can happen in a few ways. The most common method, where the cost of shipping is factored into the item's list price. You might not see a separate "shipping fee" but it's embedded. Businesses might also raise the purchase threshold required to qualify for free shipping and the ability for retailers to offer attractive incentives like truly free shipping or flat-rate shipping becomes more challenging. 

All of this can lead to less competitive pricing for consumers. It's not just the final delivery to your door. Increased shipping costs affect every stage of the supply chain, from raw materials to manufacturing and distribution. Each step where goods are moved incurs a higher cost, which ultimately trickles down to the end consumer.

While you might not be the one at the post office mailing packages, the rising tide of USPS shipping costs is undoubtedly lifting the prices of countless goods you purchase. With shipping prices set to increase again before the holiday season, it's important to know why and how these costs ultimately get passed on to you, the consumer.