When does the USPS price increase take effect in 2027?

USPS says the new shipping prices are scheduled to take effect on January 17, 2027. The changes were filed with the Postal Regulatory Commission on November 12, 2026, and the commission reviews them before they start.

Are stamp prices going up in January 2027?

No. USPS says no changes are being made to the price of stamps in this filing. The increases apply to shipping services such as Priority Mail, Priority Mail Express, USPS Ground Advantage and Parcel Select, plus some special services and international shipping.

What is the USPS 11% fuel surcharge?

In April 2026 USPS added a temporary 8% transportation-related price change. From January 17, 2027, USPS plans to make that a permanent 8% fuel surcharge and add 3% more, for 11% in total. It applies to domestic shipping, not international products for now, and USPS says it will reevaluate the level in July 2027.

How much are UPS and FedEx raising rates for 2027?

FedEx says its standard list rates for U.S. package services rise an average of 5.9% on January 4, 2027. UPS announced a 5.9% average increase on its daily rates from December 21, 2026, and a 4.5% increase on its published Small Business Rates the same day.

Should I raise my shipping price or keep free shipping?

Work out your new average label cost first. If free shipping still fits inside your margin at your current threshold, keep it and raise the threshold or product prices slightly. If it does not, switch to a flat rate that covers most orders, or charge calculated shipping at checkout.

USPS Price Increase 2027: Small Shop Shipping Checklist

Q: Can GBot update my shipping rates or labels?

No. GBot does not connect to USPS, UPS, FedEx, your shop platform or your shipping software, and it does not change prices or buy labels. It helps with the numbers and the words: Sam can rework your prices or free shipping threshold with the new label costs you paste in, and Mia can draft your shipping page update, a customer email about new rates or a reply to a shipping question. You post or send it yourself.

The short answer: USPS plans to raise domestic shipping prices by 5.9% on average from January 17, 2027, and turn its temporary 8% transportation charge into a permanent 11% fuel surcharge. Stamps stay the same. If you ship products, check your real label costs before the holidays end, then adjust your free shipping threshold, flat rates or product prices so shipping does not quietly eat your margin.

This guide is for any small business that mails orders: online shops and makers, boutiques and gift shops, bakeries and coffee roasters that ship, salons and gyms that sell retail products, and agencies that post samples or print. It takes about 30 minutes with your last month of orders open.

What USPS announced

On November 12, 2026, the Postal Service filed notice with the Postal Regulatory Commission for new shipping prices. The headline changes:

Change	Detail
Effective date	January 17, 2027 (subject to Postal Regulatory Commission review)
Domestic shipping	Up 5.9% on average for Priority Mail, Priority Mail Express, USPS Ground Advantage and Parcel Select
Fuel surcharge	The 8% charge added in April 2026 becomes a permanent 8% fuel surcharge, plus 3% more, for 11% in total
Surcharge review	USPS says it will reevaluate the surcharge in July 2027 based on fuel prices in the first half of 2027
International	Up 7.9% on average; the fuel surcharge does not apply to international products for now
Stamps	No change to First-Class Mail stamp prices
PO Boxes	Competitive PO Box prices do not change in January

The full proposed price tables are on USPS Postal Explorer, listed as the January 2027 Price Change. The same page shows that the time-limited holiday prices run from October 4, 2026 through January 17, 2027, so your costs change again on that date.

Value Added Resource reports that the regulatory filing also says USPS still intends to move to weekly fuel-based adjustments later, with no start date announced yet. Plan for the surcharge to move after July 2027, not to stay fixed forever.

UPS and FedEx go first

If you use more than one carrier, the 2027 changes start before USPS:

UPS: daily rates for Ground, Air and International rise an average net 5.9% from December 21, 2026, and published Small Business Rates rise 4.5% the same day, according to Supply Chain 24/7.
FedEx: standard list rates for U.S., export and import package services rise an average of 5.9% from January 4, 2027, per the FedEx rate changes page. New paper document fees start January 18, 2027.

An average is not your number. Your increase depends on the service, weight, zone and any discounts through your shop platform or shipping software, so check your own labels.

The 30-minute shipping price check

Export last month's orders. You need order value, what the customer paid for shipping and what you paid for the label.
Find your average label cost. Add up label spend and divide by the number of orders. Do the same for your three most common package sizes.
Look up the new prices. Download the proposed January 2027 price file from Postal Explorer and find the services, weights and zones you use most. If you buy labels through a platform, watch for its own updated rates.
Work out the gap. New label cost minus current label cost, times your monthly orders, is your monthly shipping increase.
Re-check free shipping. Compare your free shipping threshold with your new average label cost and your margin (see the math below).
Re-check flat rates. If you charge a flat fee, make sure it still covers most of your orders, not just the light ones.
Update the words. Change your shipping page, checkout notes and product listings that mention shipping costs.
Set a reminder for July 2027. That is when USPS says it will review the fuel surcharge.

If you sell on a marketplace, remember that some, such as Etsy and eBay, calculate transaction fees on the total the buyer pays, including shipping, as Value Added Resource notes. Higher shipping charges can mean slightly higher fees too.

Free shipping math, with an example

Free shipping works when the margin on a typical order covers the label. Here is a simple example with made-up numbers, so swap in your own:

Average order: $48
Product cost and packaging: $22
Average label today: $9.00
Average label after January 17 (from your own lookup): $9.80

Before the change you keep $48 minus $22 minus $9.00, which is $17.00 per order. After, you keep $16.20. On 200 orders a month, that is $160 less a month.

You have four ways to win it back:

Raise the free shipping threshold so the average order grows, for example from $50 to $60.
Raise product prices a little. In the example above, adding $1 to each order covers the gap. Our worksheet on how much to raise prices in 2027 walks through it.
Move to a flat rate that covers your typical label, and keep free shipping for larger orders only.
Trim the box. Smaller, lighter packaging can move parcels into a cheaper price band.

Add the new monthly shipping cost to your 2027 small business budget so it does not surprise you in February.

3 customer message templates

Swap the brackets for your details.

1. Shipping page update

Shipping prices: from January 17, 2027, USPS is raising its shipping rates. Our standard shipping is now [price], and orders over [threshold] still ship free. Prices shown at checkout always include the latest rates.

2. Email to regular customers

Subject: A small change to our shipping from [date]

Hi [Name], the Postal Service is raising shipping prices in January. To keep free shipping for most of you, our free shipping threshold moves from [old] to [new] on [date]. Order before then to use the current threshold. Thank you for shopping small with us. [Name], [Business name]

3. Reply when someone asks why shipping went up

Hi [Name], good question. USPS raised shipping prices on January 17, 2027, including a fuel surcharge, and our shipping fee now reflects that. [We do not add a markup on postage.] Orders over [threshold] still ship free. [Name]

For more ways to explain a change without losing customers, see our price increase announcement templates. For the rest of the season, keep our holiday shipping deadlines for 2026 handy.

Where GBot fits

GBot is an AI assistant for small businesses at $19.99/mo. It does not connect to USPS, UPS, FedEx, your shop platform or your shipping software, and it does not change prices or buy labels. It helps with the numbers and the words. Sam can rework your prices or free shipping threshold with the new label costs you paste in, and Mia can draft your shipping page update, an email about new rates or a reply to a customer who asks about shipping. You post or send it yourself.