Understanding USPS price increases in 2025

Shipping costs are on the rise again as the United States Postal Service (USPS) implements its 2025 rate adjustments, effective January 19, 2025. These changes are part of the USPS’s 10-year modernization plan, Delivering for America, aimed at achieving financial sustainability while modernizing its infrastructure and services.

Whether you're an ecommerce seller or a local business offering shipping options to your customers, these USPS price increases in 2025 may impact your bottom line. Here’s what you need to know to stay informed and make adjustments to your shipping strategy.

What’s changing?

USPS announced shipping rate increases across key services while maintaining stable rates for others.

Price increases:

• Priority Mail: 3.2% average increase
• Priority Mail Express: 3.2% average increase
• USPS Ground Advantage: 3.9% average increase
• Parcel Select: 9.2% average increase

Price exceptions:
Rates for First-Class Mail, Marketing Mail, Periodicals, Bound Printed Matter, and Media Mail remain unchanged.

Read more about USPS' 2025 price increases on their website.

Why these changes?

The USPS relies on postage and product sales to fund operations, and these adjustments are "part of a broader plan to support $40 billion in investments over the next decade,” according to USPS.

Key improvements include:

• Modernizing technology to enhance service reliability
• Investing in infrastructure to support growing ecommerce demands
• Enhancing personnel support to ensure operational excellence

While Mailing Services rates are tied to the consumer price index, shipping services prices are adjusted based on market conditions. These USPS shipping rate changes are critical to supporting the modernization efforts outlined in Delivering for America.

How will these changes impact small businesses?

For small business owners, rising shipping costs may affect everything from profit margins to customer pricing strategies. Depending on your shipping volume and service mix, you might face:

• Higher fulfillment costs for online orders
• Challenges in maintaining competitive pricing, especially for free shipping offers
• The need to adjust pricing or streamline logistics strategies

The USPS price increases in 2025 could be negatively impactful particularly for ecommerce businesses and companies reliant on services like USPS Priority Mail or Parcel Select.

Strategies to navigate USPS price increases

Here are actionable steps small businesses can take to mitigate the impact of rising USPS rates:

1. Reassess your shipping mix: Compare USPS rates with those of competitors like UPS and FedEx to find the most cost-effective solutions for your shipping profile.
2. Optimize packaging: Minimize package size and weight where possible to reduce shipping costs. This is particularly important for services like USPS Ground Advantage, where rates depend on dimensions.
3. Negotiate discounts: High-volume shippers may qualify for discounted rates or customized pricing plans through USPS or other carriers.
4. Incorporate strategic pricing: If passing costs to customers, clearly communicate the value of your offerings to justify shipping fees. Alternatively, offer free shipping on higher order values to maintain appeal.
5. Leverage shipping apps: Consider platforms like Parsel that provide discounted shipping rates, efficient packing workflows, and fast delivery times.

Take control of your shipping strategy

Visit a Saltbox location to discover how we can help your business adapt to shipping changes and thrive. Book a tour today.