The United States Postal Service (USPS) has recently faced criticism from its customers due to both new rate increases and an issue with overcharging on postage.
As the Postal Service continues to make efforts to raise revenue, many customers have found themselves paying more than expected, particularly when using multi-carrier shipping platforms.
USPS Price Hike and Its Impact on Customers
On July 13, USPS raised the price of mailing services by about 7.4%, which included a significant increase in the cost of the Forever stamp.
The price of a First-Class Forever stamp increased from 73 cents to 78 cents, marking the 20th increase since 2000. Other postage rates have also gone up, with domestic postcards now costing 62 cents (up from 56 cents) and metered letters going from 69 cents to 74 cents.
These increases have left many consumers frustrated, especially those who rely on USPS for mailing cards and gifts. Many people expressed their dissatisfaction online, with some stating that these higher prices would lead to decreased usage.
One customer even posted, “The increase will not help…it will decrease usage,” while another angrily stated, “Incompetence has its price.”
Overcharging Issue with Multi-Carrier Shipping Platforms
While USPS customers are already upset by the new price hikes, an additional problem has emerged involving multi-carrier shipping platforms.
These platforms, such as Shippo, ShipStation, and ProShip, allow small businesses to compare rates, generate labels, and track packages across various carriers like FedEx, UPS, and USPS.
However, a report from the USPS Office of the Inspector General (OIG) revealed that some of these platforms had overcharged merchants due to incorrect postage rates.
From November 2023 to January 2025, the OIG found that USPS lost approximately $1 million in revenue due to issues with postage accuracy.
A significant cause of the overcharges was technical problems with the software used by multi-carrier platforms, which rounded package weights incorrectly. This caused some businesses to pay more than the correct postage, even though over 99% of packages were properly paid for.
Additionally, some errors involved the use of cubic rates instead of weight-based rates, and rural ZIP code rates were applied incorrectly. These mistakes further complicated the situation and led to higher costs for small businesses that rely on these platforms for cheaper postage.
USPS’s Efforts to Correct the Issue
In response to the OIG’s findings, USPS has encouraged multi-carrier shipping platforms to adopt software that correctly rounds package weights. The Postal Service is also working to ensure that postage for all shipments is accurate by using automated package verification systems.
To improve revenue collection, USPS plans to implement proactive quarterly rate monitoring and has already resolved issues with non-rural ZIP codes.
Continued Struggles with USPS Pricing
Despite efforts to fix the technical issues, USPS’s continued rate hikes and problems with overcharging have caused frustration among both regular customers and small businesses.
The ongoing adjustments to mailing prices, along with the recent overcharge issues, have led to growing discontent among those who rely on the Postal Service for everyday shipping needs.
Additionally, as USPS works to improve its pricing accuracy, the agency is also focused on achieving financial stability through its “Delivering for America” plan, which seeks to address long-term challenges.
However, customers have criticized the rising costs, particularly during the holiday season when sending cards and gifts is expected to be even more expensive.
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