The Landscape is Shifting
8.8%
First-Class Presort Increase
(+$0.05 per piece)
7.4%
Marketing Mail Increase
(+$0.03 per piece)
3.8%
Nonprofit Increase
(+$0.015 per piece)
These figures reflect typical average per-piece and percentage increases.
Key Rate Increases: A Closer Look
The July 2025 rate adjustments will affect a broad spectrum of mailing services. The changes are not uniform, with certain categories seeing significantly higher increases. Understanding these details is the first step in managing your mail production budget effectively.
First-Class Mail Price Adjustments for High Volume
First-Class Mail for high-volume operations will see notable price changes. This chart compares current rates with proposed rates for key categories relevant to bulk mailers, including the precise First-Class Mail Presort Automation Letter rate.
Marketing Mail Average Increase
While the average increase for Marketing Mail is 7.4%, certain sub-categories like Flats and deeply sorted Letters will face much steeper hikes. This disparity highlights the USPS's strategy to rebalance costs for mail types that are more complex to process.
USPS Published Base Rates (Excludes Logistics)
These tables provide precise snapshots of proposed base rates for key presorted mail categories, updated with granular data. Note that these are **base postage rates only** and do not include freight or handling fees.
Marketing & Nonprofit Mail Rates
For-profit mailers | 501(c)(3)-qualified orgs
| Mail Category & Presort Level | Marketing Rate | Nonprofit Rate |
|---|---|---|
| Automation Letters (3.5oz) - Mixed AADC Automation: Presorted and barcoded |
$0.432 | $0.240 |
| Automation Letters (3.5oz) DSCF AADC Automation: Presorted and barcoded |
$0.389 (excludes freight) | N/A |
| Automation Letters (3.5oz) - 5-Digit (DSCF entry) | $0.354 (excludes freight) | $0.162 (excludes freight) |
| Automation Flats (4oz) - Mixed ADC | $1.185 | $0.920 |
| Automation Flats (4oz) - 3-Digit | $0.986 | $0.721 |
| Automation Flats (4oz) - 5-Digit (DSCF entry) | $0.732 (excludes freight) | $0.467 (excludes freight) |
Typical all-in nonprofit postage (with freight) is closer to $0.18–$0.21 per piece.
First Class Mail Rates
Automation: Presorted and barcoded
| Mail Category & Presort Level | Proposed Rate |
|---|---|
| Automation Letters (3.5oz) - Mixed AADC | $0.672 |
| Automation Flats (1oz) - Mixed AADC | $1.488 |
| Automation Flats (1oz) - 3-Digit | $1.235 |
| Automation Flats (1oz) - 5-Digit | $0.970 |
Most national mailings fall between 3-Digit and Mixed AADC rates.
DG3 performs customized postage analysis for every mailing to identify the lowest achievable rates based on format, geography, and entry.
Operational & Delivery Network Shifts
Beyond price tags, fundamental changes to the USPS network will impact how mail is entered and delivered. These structural adjustments are designed to streamline USPS operations but require mailers to adapt their logistics strategies.
End of an Era: NDC Discount Retirement
A significant change is the retirement of the **Network Distribution Center (NDC) entry discount**. While NDCs will still exist, the financial incentive for mailing to them is being eliminated. This will directly increase costs for mailers who relied on this drop-shipping strategy, prompting a pivot to other entry points like Sectional Center Facilities (SCFs) to preserve savings.
Before July 2025
After July 2025
The NDC discount is eliminated. Mailers must now target SCF or DDU entry points for discounts.
First-Class Mail Delivery Standard Shifts
First-Class Mail delivery is **shifting from a typical 1-3 day delivery to 2-5 days**. It is expected that 75% will maintain current speed, 14% will be faster, and 11% will be slightly slower, impacting predictability for time-sensitive mailings.
What This Means For You
These changes are not just numbers on a page; they have real-world consequences for your operations and budget. Proactive planning is essential to mitigate their impact.
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💰
Mail Production Budgets
Budgets for Q3/Q4 2025 and beyond must be revised to reflect higher postage costs.
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🚚
Logistics & Transportation
The end of NDC discounts requires a complete rethink of drop-ship and freight strategies.
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📅
Campaign Timing
Shifts in delivery standards demand more precise planning for time-sensitive mailings.
Parcel Carrier Rate Comparison
The USPS is also adjusting its parcel service rates as it competes with private carriers. While FedEx and UPS have announced similar average increases, the USPS aims to remain competitive, especially for commercial and lightweight shipments.
2025 Average Rate Increases: Parcel Services
This chart compares the announced average General Rate Increases (GRI) for major parcel services. Note that actual costs can vary greatly based on weight, zone, and service level.
Your Strategic Toolkit for Success
Adapting to this new postal environment requires more than just budget adjustments; it demands strategic optimization. By leveraging advanced techniques and incentives, you can mitigate costs and even improve delivery performance.
✉️ Commingle & Presort
Combine your mail with others to achieve deeper postal discounts and faster, more predictable delivery. Optimizing presorting and utilizing address hygiene are now more critical than ever to qualify for the best available rates.
🚚 Advanced Drop-Shipping
With NDC discounts gone, the focus shifts to maximizing SCF entry. A sophisticated drop-ship strategy is essential to bypass USPS processing steps, reduce handling, and achieve the lowest possible postage rates.
🎉 Leverage USPS Promotions
Offset rising costs by participating in USPS promotions for things like interactive mail, integrated technology, and mail volume growth. These incentives can provide valuable postage credits and discounts.