The USPS has new rates for 2025. They’ve been raising them consistently each year. With final approval, the 2025 USPS postage updates will take effect on January 19, 2025. For companies that spend a considerable amount on postage for transactional mail, it’s crucial to understand the impact of these fees and the opportunities to reduce them.
The 2025 USPS Postage Updates
The USPS submitted recommended pricing for 2025 in November. The USPS Board of Governors approved these, but final authorization by the Postal Regulatory Commission is still required.
Here’s what’s on the table for the 2025 USPS postage updates:
- There will be no change to the First-Class Mail Forever Stamp. They will remain at 73 cents, which was the cost introduced in July of 2024. However, the Postmaster General noted that an increase could come later this year.
- Priority Mail and Priority Mail Express will increase by 3.2%.
- USPS Ground Advantage will rise by 3.9%.
- Parcel Select services will surge by 9.2%.
This is good news on the First-Class mail front. However, there are still substantial increases for the classified mailings listed above.
Why Is the USPS Raising Rates in 2025?
The USPS has been on a schedule of making recommendations and changes to postage rates and services twice a year. The increased prices are part of the USPS’s modernization plan, “Delivering for America.”
Can businesses find any relief from postage rates that are on a constant increase trajectory? One of the best ways to do this is by outsourcing transactional print and mail.
The Key to Reducing Postage Costs from the 2025 USPS Postage Updates Is All About Volume
While you may produce a lot of transactional mail, you’ll likely never reach the volume of commercial print and mail providers. They are able to secure the most favorable rates for all mail types. Greater volume equals better rates! Besides volume, transactional communications producers have more postage optimization strategies.
Postage Optimization by Experts
There are several tools and practices used to deliver the best rates.
Address Hygiene Tools
Inaccurate or incomplete addresses create waste in postage costs. Before letters hit the printer, professional printers have a system in place to reduce this. They use proprietary technology and the USPS Intelligent Mail® barcode (IMb) for address hygiene. The tool finds and captures bad addresses.
It won’t catch everything, but using this strategy creates return mail that is manageable electronically. The USPS sends a digital Change of Address (COA) or Undeliverable as Addressed (UAA) file. It automatically updates addresses in the database in real-time.
High-Volume Presorting
Volume comes into play when using presorting. Presorting, segments letters by ZIP codes. Transactional print and mail companies initiate this before they deliver it to the USPS. It ensures a better rate because the post office has to do less work.
Sorting and Stacking with the IMb
The IMb barcode also helps with sorting and stacking. It also makes tracking letters easier. Print and mail facilities prepare mail for this to earn automation prices.
Commingling
Commingling is another postage optimization model. It takes presorting to a new level by categorizing letters by ZIP codes.
Mail Piece Standardization
Do your transactional letters have the same size? Any deviations from the standard can cost you more. Those who are experts in postage optimization will provide recommendations on standardizing to #10 envelopes. They also only use paper that weighs 3.5 ounces or less.
Enabling More Efficient E-Delivery
Creating more digital versus paper transactional communications will save on postage. However, you need a compliant and secure e-delivery platform to do this. Your transactional print and mail expert may offer this, too. It tracks all deliveries and provides ways for customers to take action, such as paying the bill or updating their account.
With e-delivery and print and mail services from the same company, it keeps things simple for you. Additionally, if there are issues with e-delivery, the system can trigger the printing and mailing of the document.
The 2025 USPS Postage Updates Don’t Have to Break Your Budget
The only certainty with postage rates is that they will increase and that’s the case with the 2025 USPS postage updates. It can be a heavy and burdensome expense. You can ensure the best rates and save on operating and capital expenses by outsourcing.
Learn more about how to transition with a no-cost consultation.
