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Urgent Update: What Shippers & Mailers Need to Know About Upcoming USPS Changes

by | Industry News, Parcel, Rate Increases, USPS

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If you send mail, parcels, or operate a fulfillment/mailing center, you’ll want to read this. The United States Postal Service (USPS) is making a batch of changes that will impact how your mail gets processed — and how much you’ll pay. Here’s what you need to know right now.

1. New Mailing Standards Effective November 3, 2025

The latest update to the Domestic Mail Manual (DMM) officially went into effect this week. It includes revised rules and classifications across both Retail and Commercial Mailing Services.

The biggest takeaway: every mailing operation should be reviewing its compliance practices right now. Even small mismatches between how you prepare mail and what the DMM defines can create rejections, processing delays, or higher postage costs.

A few highlights:

  • Updated category breakdowns for letters, flats, and parcels.
  • Adjustments to general and special mailing standards.
  • New references and appendices you’ll need to align with before your next large-volume send.

If you work with a presort partner or mailing vendor, confirm they’re using the new standards effective November 3.

2. USPS Rate Outlook Projects a 5.3% Increase in July 2026

Looking ahead, USPS has indicated it expects a 5.3% rate increase in July 2026, followed by smaller adjustments in early 2027.
These are projections, but they’re realistic enough to start planning for now.

Even small percentage increases have a major impact on high-volume mailers. It’s smart to:

  • Review current budgets and postage forecasts.
  • Lock in mailing service contracts early if possible.
  • Revisit your postage-saving strategies, including presort options and zone planning.

By preparing now, you’ll avoid the mid-year scramble when these rate hikes take effect.

3. January 2026 Postal Changes Under Review

Another set of USPS adjustments is expected to roll out in January 2026. These changes focus on structural rate realignments and software or service-level updates that affect how mailing systems process data.

If your company uses mailing software, print automation tools, or presort services, reach out to your providers now to confirm their readiness.

These shifts may require updates to classification tools, address databases, or pricing logic. Waiting until January could result in delayed billing or mail rejection errors.

4. No Rate Increase for Market-Dominant Products in January 2026

In a contrasting move, USPS announced no price increase for Market Dominant products (like First-Class Mail) in January 2026.

Why that matters:

  • It gives mailers a window of cost stability — at least for those services.
  • It doesn’t mean all services are unaffected — competitive or package-related categories might still change.
  • Use this pause to optimize formats, push campaigns, or lock in presort strategy before the next hike.

Bottom line: This pause is smart timing; use it wisely to strengthen your next budget cycle.

What to Do Now

  • Audit your mailing processes: Compare current classification and documentation practices against the new DMM, effective November 3.
  • Update your budget: Assume at least a 5% cost increase by summer 2026 and begin planning now.
  • Check with vendors: Confirm your presort, mailing software, and fulfillment partners are ready for both classification and system changes.
  • Maximize the pause: Use the January 2026 rate pause for market-dominant mail to push strategic mailings, test formats, or lock in advantageous terms.

Why This Matters

Postage changes are rarely dramatic at first glance, but over a full fiscal year, they can drain budgets fast.

A 5% cost increase on thousands or millions of pieces turns into real dollars. A classification error or slow update can cost you more than just postage — it can cost you time, service, and reputation.

These USPS updates aren’t “nice to know.” They’re “need to act on now.”

Below are some resources to help you navigate these changes:

Parcel Audit Services — keep your shipping costs in check year-round

Rate Increase Playbook — see our full analysis of carrier and postal rate trends

2025 Parcel Carrier Rate Impact Report

Logistics Strategies Blog — get timely updates on industry-wide cost changes

Sources & Further Reading

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