The Postal Regulatory Commission (PRC) has approved the next USPS postage rate adjustments effective July 13, 2025. This USPS rate increase creates several structural and operational changes. This could significantly impact how mail is prepared, entered, and delivered.
Here is an overview of the key changes and strategies:
Postage Rate Increases
USPS rates will increase by an average of 7.4%, with some Marketing Mail tiers rising as much as 11.6%.
- First-Class Forever Stamp: Increasing to $0.78
- Retail First-Class Postcards: Increasing to $0.62
While these changes are significant, there are strategic ways to control the impact, especially for high-volume and commercial mailings.
Structural & Operational USPS Changes
In addition to rate increases, the USPS is introducing several changes that affect mail entry, preparation, and qualification for discounts:
- DNDC Discounts: If you have ever drop shipped mail, you know that delivery to a Destination Network Distribution Center (DNDC) and Destination Sectional Center Facilities (DSCF) provided some nice discounts on postage. The USPS is removing DNDC delivery to simplify pricing and operations. They want to encourage mail entry to the more localized entry point DSCF to improve efficiency.
- DSCF Pallet Discounts: Currently offered for Marketing Mail, discounts now apply to First-Class mail. Preparing First-Class mail with a finer presort will reduce handling and speed up delivery.
- Bound Printed Matter: The proposed removal of Bound Printed Matter (BPM) has not been approved, so it will continue under the July 2025 rate changes.
- Catalog Insights Promotion: A new promotion offering a 10% discount running October 2025-June 2026. The USPS defines a catalog as a bound mailpiece of at least 12 pages, providing an organized listing of products or services offered for sale.
USPS Promotions & Incentives to Offset Increases
To help mailers offset rising postage costs, the USPS is continuing its suite of promotions in 2025. These can provide substantial savings when integrated into campaign planning:
- Tactile, Sensory & Interactive Mail (Feb 1 – July 31): 4% discount for using textures, finishes, or interactive elements.
- Integrated Technology (Any 6 months through Dec 31): 3% discount for digital features like QR codes or voice tech.
- Continuous Contact (Apr 1 – Dec 31): No discount on the initial mailing. 3% discount on follow-up mailings to the same mailing list.
- Reply Mail IMbA & First-Class Advertising: 3% discount each when qualified.
- Informed Delivery & Sustainability: Additional 1% discount each for using Informed Delivery or sustainable practices.
Preparing for What’s Ahead
This isn’t just a price update, it’s a bigger shift in how the USPS wants mail to move through their system. If you rely on mail for outreach, marketing, or fulfillment, now’s the time to revisit your postal strategy. There’s still time to adapt. A few smart moves can go a long way toward keeping costs manageable.
Need help figuring out how these changes could impact your business or what savings opportunities you might be missing? Let’s talk through your options and find the right path forward.
