The United States Postal Service (USPS) has officially filed notice with the Postal Regulatory Commission (PRC) for new shipping rates that will take effect on January 18, 2026.
While the price of a standard First-Class stamp will remain unchanged, e-commerce merchants are facing significant cost increases. The proposed changes target "Competitive Products"—the shipping services most used by online sellers—with USPS Ground Advantage seeing the steepest hike.
The New 2026 Rate Increases
The USPS Governors have approved the following average price increases:
- USPS Ground Advantage: +7.8% (The highest increase, affecting lightweight e-commerce parcels).
- Priority Mail: +6.6%
- Parcel Select: +6.0% (Often used by high-volume shippers and consolidators).
- Priority Mail Express: +5.1%
Last week, Postmaster General David Steiner stated that the USPS would rethink its relationship with "consolidators" (companies like UPS Mail Innovations, DHL eCommerce, and Amazon that inject packages into the postal network for the final mile). He argued that offering "exclusive access" and deep discounts to these giants limited revenue.
The 7.8% hike in Ground Advantage and 6.0% hike in Parcel Select are the direct result of this pivot.
By raising these specific rates, the USPS is effectively "monetizing" its first- and last-mile assets. They are betting that their delivery network is so essential—reaching every doorstep in America—that merchants and consolidators will have to pay a premium for it, rather than receiving the "sweetheart deals" of the past.
The most critical takeaway for sellers is the 7.8% jump in USPS Ground Advantage.
Since its launch, Ground Advantage has been the go-to economy option for packages under 1 lb, replacing First-Class Package Service. A near-8% increase significantly erodes the margin for sellers of low-cost, lightweight items (e.g., phone cases, cosmetics, t-shirts).
Specific Pricing Examples (Proposed): According to industry filings, the cost of popular flat-rate products may see sharp jumps. For example, a Priority Mail Flat Rate Envelope is projected to rise to approximately $11.95, up from previous commercial rates.
The USPS states that these hikes are necessary to "keep the Postal Service competitive while providing the organization with needed revenue."
This move aligns with Postmaster General Louis DeJoy’s "Delivering for America" plan, which aims to modernize the postal network. Unlike "Market Dominant" products (like letters), which are tied to inflation, "Competitive Products" (shipping) are priced based on market conditions. With private carriers like UPS and FedEx also raising rates, the USPS is closing the price gap.
Action Item: Sellers should update their shipping templates and rate tables immediately to reflect the January 18th changes. If you offer "Free Shipping," calculate whether your current product pricing can absorb an 8% increase in logistics costs.
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28 Nov, 2025
