The U.S. Postal Service announced it will raise shipping rates beginning January 18, 2026. The rate hikes—already approved by the USPS Board of Governors—are part of an ongoing effort to stabilize the agency’s finances, which recorded a $9 billion net loss in FY 2025.
Proposed increases include:
- Ground Advantage: +7.8% average (up to 9.6% for commercial users)
- Parcel Select: +6%
- Priority Mail: +6.6%
- Priority Mail Express: +5.1%
The changes still require review by the Postal Regulatory Commission.
Retail and Omnichannel Implications
These increases outpace upcoming rate hikes by FedEx and UPS in several categories, and they will significantly impact e-commerce retailers and omnichannel operators who rely on USPS for cost-effective last-mile delivery.
Heavier packages over shorter distances are likely to see the biggest cost jumps—potentially reshaping pricing, fulfillment routing, and shipping mix strategies. A 12.2% rate increase is projected for Ground Advantage shipments under 1 lb, according to parcel analyst Nate Skiver.
Why It Matters
USPS remains a critical logistics partner for small and mid-sized retailers and DTC brands. For those leveraging Ground Advantage for lower-cost omnichannel fulfillment, these rate changes could affect profit margins and customer experience, especially during peak periods.
The USPS board maintains that the rate increases are “judicious” and necessary to keep the service competitive. Retailers should begin recalibrating shipping strategies and digital checkout options now to avoid friction in 2026.
