The United States Postal Service (USPS) has proposed new postage rates set to take effect July 13, 2025, pending final approval from the Postal Regulatory Commission (PRC). Among the most significant increases are those impacting Periodicals and Marketing Mail—two categories widely used by publishers, nonprofits, and direct mail marketers.
Here’s what’s changing, how much prices are rising, and what you can do to minimize the impact.
📈 What’s Changing: USPS July 2025 Price Hikes
USPS has proposed average increases of:
- Periodicals: +9.7%
- Marketing Mail: +7.8%
These increases come as part of USPS’s ongoing “Delivering for America” 10-year plan aimed at improving financial sustainability and operational efficiency.
📚 Periodicals (Magazines, Newspapers, Journals)
- Overall average increase: +9.7%
- Outside County periodicals (most common): expect an increase of 8–11% depending on sort level, entry point, and containerization.
- Inside County (for local publications): increase is smaller, but still expected around 6–7%.
📌 Impact: Publishers will face higher costs for print distribution, particularly if they do not use presorting or drop-shipping methods.
📨 Marketing Mail (Letters, Flats, Parcels)
- Overall average increase: +7.8%
- Letters (Nonprofit and Commercial): Around +5–6%
- Flats: Increases range from 7% to 9%, particularly for non-automation and destination-entered mail.
- Parcels and Carrier Route Mail: Seeing some of the highest increases, especially for heavier items.
📌 Impact: Nonprofits, political mailers, catalog retailers, and direct marketers will see significant cost increases, particularly for flat-sized pieces and heavier mailings.
📦 Other Notable USPS Updates
- Elimination of Carrier Route Automation Basic Rates: These will now be folded into other rate categories, possibly increasing prices for businesses that relied on that tier.
- New “Heavy Printed Matter” Category: Introduced for heavier flats and parcels (e.g., catalogs and large booklets); pricing yet to be finalized.
- Container Discounts Expanded: USPS is incentivizing pallet and tray-based mailing, which could offset some increases for high-volume mailers.
- Elimination of Detached Marketing Labels (DML’s): Plus One could be an option for current DML mailers but the software is not yet available. The USPS is in talks with the major software developers at this time.
- Elimination of NDC (Network Distribution Center) Drops: NDC’s cover a wider range of zip codes than SCF’s (Sectional Center Facilities) and are often the choice for semi-frequent mailers looking for additional discounts. In July, SCF drops will be the only choice. While SCF drops offer deeper discounts, it could force mailers to deliver to more processing centers than before, thus increasing freight charges.
💡 What You Can Do to Reduce Costs
- Presort and Preprocess: Work with a mail service provider to presort and barcode mail for lower rates.
- Use Drop Shipping (DSCF or DDU): Enter mail deeper into the USPS network to save on transportation costs.
📌 Final Thoughts
The July 2025 USPS postage increases will challenge many organizations—especially publishers and direct mailers who already operate on thin margins. Planning ahead is essential. By adjusting mail preparation, formats, and entry points, you can lessen the financial impact of these rate hikes.
Stay updated by checking USPS PostalPro and follow PRC announcements for final rulings.
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