USPS rate changes are here—what you need to know for 2025

Shipping costs are a critical part of your business operations, and keeping up with carrier rate changes is key to staying ahead. With the new USPS rates now in effect as of January 19, we’re breaking down what these changes mean for your business—whether you're a small business owner using Shippo's app or a larger e-commerce operation leveraging our API. 

Let’s dive in.

Why USPS rate changes matter

Every penny counts when it comes to shipping, especially in a competitive e-commerce landscape. Knowing the latest rate changes helps you:

• Plan your budget: Anticipate cost fluctuations so you can adjust pricing and expenses.
• Optimize your shipping strategy: Take advantage of decreased rates where possible and adjust for increases.
• Stay competitive: Offer your customers the best shipping options without breaking your margins.

From small-scale shipments to high-volume logistics, staying informed keeps operations smooth and customers satisfied.

Key takeaways from USPS rate changes

USPS Ground Advantage

• Decreases:
  • Packages weighing 1oz–4oz saw an average decrease of $0.18 (-4.2%).
  • Packages weighing 2–4lbs and >7lbs saw an average decrease of $0.35 (-2.4%).
  • Cubic rating (all other tiers/zones) saw an average decrease of $0.22 (-2.1%).
• Increases:
  • Packages weighing 5oz–1lb across all zones saw an average increase of $0.17 (+3.4%).
  • Packages weighing 5–7lbs (zones 1–4) saw an average increase of $0.31 (+4.3%).
  • Cubic rating (tiers 4–6, zones 1–4) saw an average increase of $0.25 (+3.4%).

USPS Priority Mail

• Decreases:
  • Some weight/zone combos saw reductions averaging -$3.26 (-11%), with certain combos reaching -20%.
  • Cubic rating (all other tiers/zones) saw an average decrease of 6%.
• Increases:
  • Packages weighing ≥7lbs (zones 1–4) saw an average increase of $0.87 (+6%).
  • Cubic rating (zone 4 + some combinations) saw an average increase of $0.24 (+2.8%).

What to do with this information

Here are a few steps to help you navigate these changes:

1. Review your shipping costs: Take a strategic, one-time deep dive into how the updated USPS rates may impact your typical shipments. Use Shippo’s rate calculator to evaluate costs based on your most common package sizes, weights, and zones, and identify opportunities to optimize your shipping strategy.
2. Optimize for savings: Take advantage of decreased rates where possible—such as lighter packages or certain cubic tiers.
3. Streamline workflows: With Shippo, you can find the latest rates and set up automatic carrier selection and shipping rules to adapt seamlessly to rate changes and minimize manual adjustments.

How Shippo can help

Rate changes can feel overwhelming, but Shippo simplifies the process with tools designed to help you adapt quickly and efficiently. From leveraging automation to reducing errors, here’s how Shippo supports your business:

For SMBs using the Shippo web app:

• Smart rate display: Easily find the most cost-effective shipping option for your orders with the Shippo app, which displays the cheapest rates first during rate shopping—no manual comparisons needed.
• End-to-end tracking and notifications: Keep your customers informed with real-time tracking and delivery updates, helping you manage customer expectations when rates or services change.

For high-growth e-commerce brands using the Shippo API:

• Real-time rates at checkout: Offer itemized and accurate shipping quotes directly at checkout, reflecting the latest USPS rates to keep costs transparent for your customers.
• Labeling infrastructure: Streamline high-volume shipping by automating label creation for single or multi-piece shipments, while adapting to rate changes.
• Shipping rules via API: Automate carrier selection at scale by integrating custom rules that account for cost and service preferences.

Shippo ensures that whether you’re shipping a handful of packages or managing complex logistics workflows, your operations stay smooth and cost-effective—even as rates change.

Fine-tuning your operations for success

At Shippo, we’re committed to helping businesses of all sizes navigate the complexities of shipping. By staying informed and using tools tailored to your needs, you can make smarter decisions and keep your shipping costs in check.

Ready to get started?

• For SMBs: Create a free Shippo account and start saving on your shipping today.
• For high-growth e-commerce brands: Contact an expert to learn how Shippo’s API can power your logistics strategy.

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