As many of you know, as of mid-July the USPS has pushed through some significant rate increases. These changes impact everyday consumers but hit commercial mailers and businesses that use direct mail especially hard. Honestly, there hasn’t been a jump like this in quite some time.
I was involved in a pretty big effort to quantify and project what these increases would mean for our customers. Since no software existed to run the kind of models we needed, we built our own tool to analyze how the various increases affect each customer’s specific formats.
Major USPS Postal Rate Increases in July 2025
Here’s what we found:
- Letter Packets under 3.5 oz:
Up an average of 8% for First-Class, and 10% for Standard Mail - Flats under 4 oz:
Up approximately 11% - Bound Letter Booklets under 3 oz:
Up around 10% - 6x9 First-Class Postcards:
Up by about 9% - USPS Parcels:
Up a whopping 12.4%
These are among the most significant increases we’ve seen in years.
Surprising Discounts for Heavier Flats
Now here’s where it gets interesting. Flats over 4 oz are seeing smaller increases, and in some cases, actual decreases.
Sounds complicated? It is.
- Flats under 4 oz: Increase ~11%
- Flats around 5 oz: Smaller increases
- Flats in the 7–8 oz range: No increase
- Flats in the 8–16 oz range: As much as a 7% decrease in postage
Yes. A decrease.
We’re continuing to model these rate changes closely, especially where discounts exist. Our team is working nonstop to make sure our customers benefit from every possible advantage.
Facility Closures and Logistics Challenges
The USPS has also closed or reclassified many mail facilities across the country. This change has eliminated a number of entry point discounts we’ve relied on for years.
It’s a strategic move by USPS to force commercial mailers to use their own distribution network ,which, frankly, is unreliable at best.
They’ve lowered the weight thresholds for entry points, which directly increases manufacturing and logistics costs. I get what they’re trying to do, but for guys like me; who plan meticulously to hit consistent 3- to 5-day in-home deliveries. This move really hurts.
Why Advanced Logistics Matter Now More Than Ever
That’s why advanced logistics are more important than ever.
I’ve built a system that tracks:
- Trucks en route to USPS facilities
- Pallet and tray scans within USPS
- Outbound tracking through to actual in-home delivery, not just projections
I genuinely believe this system is more accurate than anything else out there.
USPS Promotional Discounts You Should Know About
There is some good news. USPS has rolled out promotional programs that can save customers real money, even in the face of these rate hikes:
- Integrated Technology Discount
Take 3% off gross postage after qualification - Recycled Paper Discount
Additional 1% off for using documented recycled paper - Informed Delivery Discount
Another 1% off when you enter your mail into Informed Delivery - Catalog Insights Program (Starting October)
Up to 10% off postage after qualification discounts
These discounts can make a meaningful dent in rising postage costs.Direct Mail Still Works. Especially with Personalization
It’s no surprise that rising rates have brands reconsidering how they promote themselves. With email and social being so inexpensive, many are tempted to go digital-only.
But here’s what I’ll tell you: people still love direct mail.
In fact, studies show that younger generations find it novel and unique. And they’re not just your future customers; they’re already your current ones.
Here’s the thing: unlike email, you can’t just “delete” a piece of mail. Even if someone tosses it, they’ve seen your logo, your offer, your brand. It sticks. That visual impact matters.
People are also expecting more personalization in their mail. Not just “Dear [Name],” but actual relevance, products, interests, timing. I like to call this “stalker marketing” (in a good way): using purchasing and browsing behavior to drive smarter, subtler targeting. When done right, it doesn’t feel intrusive; it feels timely.
There are more ways than ever to make direct mail personal, effective, and engaging.
Get Expert Help Navigating USPS Rate Changes
If you have questions or want to explore ways to make your direct mail more efficient, personalized, and cost-effective, I’d love to talk.
We’ll figure out how to make direct mail continue working for you, even in a changing postal landscape.
