Rising Shipping Costs in 2025
As you may know, USPS postage rates have seen multiple increases in 2025. In January, competitive shipping services such as Priority Mail, USPS Ground Advantage, and Parcel Select rose by 3–9%. Then, on July 13, 2025, USPS implemented a broader rate hike, raising prices for both mailing and shipping services. This included First-Class Mail, Priority Mail, and other package services, with some classes increasing by over 7%.
While these adjustments help USPS cover operational costs, they also create new challenges for businesses that depend on consistent, affordable shipping. For e-commerce sellers, small retailers, and subscription services, even a few cents per package can add up to hundreds or thousands of dollars over the year.
That’s why many are turning to 3PL partners like Wolff/SMG. With efficient fulfillment processes, Wolff/SMG can minimize the impact of these increases and allow you to focus on what matters most: running a successful business.
Understanding USPS Mail Classes
Choosing the right USPS mail class is the first step to keeping costs down. Each mail class has its own price structure, delivery speed, and weight limits:
- First-Class Mail: Ideal for letters, postcards, and lightweight packages up to 13 oz. Affordable for small, lightweight items.
- Priority Mail: Faster delivery (1–3 days) with flat-rate options for heavier items. Best for packages over 1 lb but under 70 lbs.
- Priority Mail Express: Overnight shipping at the highest USPS rate. Only use for urgent orders.
- Media Mail: Low-cost shipping for books, CDs, DVDs, and educational materials. Slower delivery speed.
- USPS Ground Advantage: A budget-friendly option for heavier or non-urgent packages, replacing USPS Retail Ground and First-Class Package Service.
With Wolff/SMG’s valuable and affordable 3PL services, your shipments can be automatically matched to the most cost-effective mail class, eliminating guesswork and saving valuable time.
Practical Tips for Reducing Postage Costs in 2025
Even without a 3PL, businesses can take steps to manage shipping costs:
- Use USPS Flat-Rate Boxes: Ship heavier items without worrying about weight-based increases.
- Batch Shipments: Send multiple items in a single package when possible.
- Negotiate Commercial Pricing: Sign up for USPS Commercial Base or Plus Pricing through online postage services like Stamps.com or Pirate Ship.
- Leverage Regional Rate Options: If most orders go to nearby states, regional rate boxes can save significantly.
- Automate Shipping Software: Automatically select the cheapest shipping option for each order.
Still, these strategies require time and constant monitoring, something many business owners simply don’t have.
Why Wolff/SMG’s 3PL Services Make a Difference
A third-party logistics provider (3PL) like Wolff/SMG can be a game-changer in navigating postage increases. These companies handle storage, packing, and shipping for you, but more importantly, we have access to negotiated bulk shipping rates lower than what a single business could get directly from USPS.
Additional Benefits of partnering with Wolff/SMG:
- Faster Fulfillment: Multiple warehouse locations reduce zone-based shipping costs and speed delivery.
- Scalability: Easily manage seasonal spikes without needing to hire extra staff.
- Technology Integration: Automated label printing, real-time tracking, and inventory syncing with your e-commerce store.
The US postage increase in 2025 is an unavoidable inconvenience, but higher rates don’t have to hurt your bottom line. By selecting the most cost-effective USPS mail class and partnering with a reliable 3PL like Wolff/SMG, you can keep shipping affordable, speed up fulfillment, and free up time to focus on growing your business. In a competitive market, Wolff/SMG helps you manage costs without sacrificing customer satisfaction.
