2025 US Postal Shipping Rates

US Postal Service Rate Hikes

Starting January 19, 2025  The US Postal Service Shipping Rates will get more expensive, with e-commerce companies expected to feel the impact the most!

  • USPS Ground Advantage rates will rise by 3.9%.
  • ParcelSelect, a service frequently used by UPS, DHL, and FedEx for last-mile deliveries, will see a 9.2% hike.

These increases are part of USPS’s efforts to fund $40 billion in investments in personnel, technology, and infrastructure. According to USPS, the changes will further modernize operations and enhance customer experiences.

Parcel Select, which depends on consolidators like DHL eCommerce for integrating packages into the USPS network, has already experienced a significant price hike. A 25% average increase was introduced in July, targeting parcels entered at local delivery units. The new 9.2% increase aligns with USPS’s goal of moving shipments further upstream in the Postal Service’s network, improving efficiency and utilization.

e-commerce retailers can limit US Postal Service increases

First, why is this happening?

USPS Has Ended Many Discounted Rates for Package Consolidators

The new 2025 US Postal Service shipping rates has eliminated most discounts  for package consolidators like UPS, DHL, and FedEx to boost financial sustainability. These changes are part of its 10-year “Delivering for America” plan, aimed at increasing revenue and operational efficiency. The Postal Service hopes these adjustments will encourage shippers to rely on USPS services, such as Ground Advantage, instead of utilizing third-party consolidators for final-mile deliveries.

If you are an e-commerce e-tailer selling products online.

Make sure your fulfillment warehouse has rate shopping capabilities. This will ensure you get the lowest rate based on package size, weight, and destination through a variety of carriers.

Verify with your fulfillment warehouse that they have aggressive DIM weight discounts. DIM Service Charges are when your package weighs less but needs a larger shipping box because of the overall size of the shipment.

Chicago fulfillment services has very competitive discounted shipping rates available to our customers as we are a volume fulfillment service

More information:

Additionally, the USPS will reduce the number of package drop-off locations, consolidating approximately 10,000 sites into 500 larger, more efficient hubs. This move aims to streamline operations, lower costs, and improve service, particularly for final-mile deliveries to over 167 million addresses nationwide.

Delivery times are also expected to shift in 2025. According to an October press release, USPS noted that some ZIP code pairs would see longer delivery timelines based on location and distance. While specifics were not provided, mail from rural areas could take an additional 12–24 hours. However, timelines are still expected to remain within a two-to-five-day window.

For example, mail that previously took three days to arrive may now take four. USPS explained that these changes will help optimize operations across its network while maintaining acceptable delivery windows.

Achieving The Most Competitive Shipping Rates.

Call us or visit our website at:

 Chicagofulfillmentservices.com

 

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