The U.S. Postal Service has filed notice with the Postal Regulatory Commission (PRC) of mailing postage increases to take effect July 13, 2025. This will result in an expected increase in commercial Marketing Mail postage of 7.4% across mailing services that include direct mail campaigns that send mail pieces such as flyers, circulars, newsletters, bulletins, catalogs, and even small parcels. While the overall average increase to send many of these pieces for nonprofit Marketing Mail will likely be near the 7.4–7.8% range seen for commercial Marketing Mail, certain nonprofit flat rates at the 5-Digit/SCF level are increasing by over 20%.

How Will Postage Increases Impact Print Companies and Marketers

These increases are putting a strain on print companies and marketers that deploy direct mail or rely on print packaging. Even an increase in postage costs of a few cents per piece can make a dramatic impact on earnings for these businesses. Add in the rising costs of paper, ink, and other print materials, and the ongoing discussions and negotiations concerning tariffs, and it’s understandable that these companies feel overwhelmed by the increases.

However, all is not doom and gloom. This isn’t the first time that direct mail marketers and brands have been confronted with postage increases and – spoiler alert – there will be more coming over the next few years as the USPS strives to avoid projected budget shortfalls. So instead of cutting back and reducing the amount of mail they plan to send, marketers should take a proactive approach and set campaigns before the new rates take effect, introduce automated and technology-fueled strategies for savings from greater efficiencies, and seize on saving presented by USPS mail promotions.

To remain flexible to deal with the postage increases and tariff disruption, brands and businesses with tight print budgets are turning to partners like Marketing.com to review and optimize their direct mail and print marketing efforts.

Why USPTO Postal Rates Are Increasing

As an independent federal agency, the USPS is mandated to be self-financing and to serve every American community through the affordable, reliable and secure delivery of mail and packages to 169 million addresses six and often seven days a week. Unfortunately, in 2020, the USPS projected that it would accrue $160 billion in losses over the next decade due to competition, structural challenges, declining mail volumes, rising costs, and legislative burdens such as the requirement to pre-fund retiree health benefits.

As a result, in March of 2021, a 10-year transformation plan, Delivering for America was launched to restore long-term financial sustainability. The plan calls for increasing the application of technological innovations throughout the postal network, dramatically improving service across all mail and shipping categories, and revenue improvements that include regular postal rate increases.

The jury is out as to whether these increases will result in USPS reaching its goal or if by making it more expensive to send mail, they will drive businesses to find digital solutions or cut back on direct mail campaigns. One thing to keep in mind is that digital and social media advertising has also become more expensive, and that even with rising postage rates direct mail delivers an astounding ROI that exceeds 112% which is higher than many digital channels like email, paid search, and social media.

How Will Tariffs Affect Print Mailing Costs

Although the extent that the proposed tariffs with China and Canada will have on the U.S. print industry is not currently known, it’s clear that if they are imposed then disruptions to the supply chain as well as increased costs for paper and pulp will pose a substantial challenge to profitmaking. These materials represent the most significant and fixed costs for marketers and brands that depend on direct mail to attract and convert customers.

The U.S. printing and packaging industry relies heavily on the trade of both raw materials and finished products with Canada to meet market demands. As of today, Canada supplies 80 percent of North America’s pulp and paper, producing approximately 2.1 million metric tons in 2023 compared to just 409,000 metric tons in the U.S.

It’s not only paper raw materials that will be affected by the tariffs. Costs for aluminum and steel will also increase, raising the price for manufacturing lithographic plates that are essential for offset printing. Print companies will be confronted with the choice of reduced revenue or passing higher costs on to customers.

China supplies roughly 12 percent of U.S. paper and 30 to 40 percent of lithographic plates used by domestic print shops and proposed tariffs could increase production costs for specialty inks, films, and machinery components coming into the country from China. In addition, if China retaliates with tariffs of its own on U.S. products, then it will drive prices up and pose logistical challenges.

Tariffs will also increase delays as customs compliance pose other logistical challenges with production timelines. This is especially critical because it’s not unusual for print and packaging materials and finished products to cross the U.S.-Canada border several times before going to market.

How to Navigate Rising Costs

These postal rate increases and tariffs pose significant challenges for businesses using direct mail, printed marketing collateral, and packaging. Working with a comprehensive print and shipping logistics partner like Marketing.com enables them to overcome any obstacles and enhance direct mail ROI for their operations. Here are six strategies to consider:

1. Optimize the format of mailing pieces – Downsize envelopes from flats to large letters or postcards, use lighter stocks to stay under 1 oz. weight, and incorporate tri-folds and folded self-mailers with tear-off reply cards that are lighter than bulky catalogs. Keep designs simple and enhance interactivity through digital channels using QR codes or PURLs.
2. Take advantage of USPS postal discounts and promotions – The USPS encourages businesses to save money on postage costs through a variety of discount programs and promotions that reward businesses for creating direct mail campaigns that meet program guidelines. The main discounts available include bulk mail discounts, Every Door Direct Mail (EDDM), nonprofit rates, and special promotional incentives.
3. Leverage data for efficiency and accuracy – Create and send mail that pinpoints the recipient based on their history, demographics, and lifestyle information to personalize the mailer, making it more relevant and meaningful. Clean lists before sending mail to eliminate duplicate addresses and ensure that pieces meet USPS addressing standards, thereby reducing the likelihood of returned mail.
4. Conform supply chains to mitigate tariffs – Diversify supply lines with domestic companies to avoid import costs or source materials from countries not impacted by tariffs. Negotiate with vendors to lock in pre-tariff pricing.
5. Investigate ways to boost revenue – Drive consumers to digital marketplaces with QR codes or PURLs printed on mailers. Personalize landing pages with offers crafted to engage consumers based on data collected across digital and social media channels. Embed AR triggers in mailers that let consumers view products in their home.

5. Engage in cost management tactics – Brands and marketers can adopt several cost management practices to reduce their exposure to postal rate increases. These include bulk mailing and presorting by ZIP code, as well as the automation of mailing processes using postage meters and folder inserts to minimize or eliminate manual intervention. Smaller companies can pool mailings with other businesses to reach higher presort tiers and achieve greater savings with high-volume mailings.
6. Plan ahead and be prepared – Increases in postal rates don’t have to handicap brands and marketers if strategies are in place to accommodate higher postage rates and potential supply chain disruptions. Negotiate prices with the understanding that postage, paper, inks and print supplies, and printer equipment will be more expensive and compare costs for warehousing materials versus purchasing as needed. Allocate budget buffers wherever possible to handle the volatility of the tariff landscape.

How Marketing.com Helps

Marketing.com provides a full suite of printing and mailing services that provide ways to control postage and print costs despite the volatility caused by postal increases and potential tariffs. We provide end-to-end solutions, including sourcing, storing, designing, and printing mailers that capitalize on USPS programs and promotions, as well as maximizing your data to create personalized connections with the people you want to reach. Here’s how we can help your business:

• Strategic Sourcing and Tariff Mitigation: As one of the largest print and fulfillment companies in the U.S, Marketing.com works closely with domestic suppliers to bypass or reduce the impact of tariffs and identify cost-saving opportunities at every stage of direct mail campaigns, e-commerce packaging and kitting, and shipping.
• Production Optimization and Cost Efficiency: We leverage the most up-to-date technology to minimize waste and keep storage costs low through innovations like Print-on-Demand (POD) and Variable Data Printing (VDP), maximizing your data assets and ROI.
• National Network of Print, Warehouse, and Fulfillment Locations: Our tightly integrated network of locations provide fast and agile solutions to manage inventory and avoid disruptions to supply chains as they occur and to provide kitting and fulfillment that takes advantage of the best and least expensive shipping opportunities.
• Technology-Driven Print and Postage Solutions with Dot™: Our powerful print marketing platform centralizes all print procurement, mailing, and fulfillment workflows through a single, easy-to-use dashboard that provides real-time data, AI-enhanced efficiency, and data analytics, enabling real-time adjustments in response to tariffs.

Are you ready to take a proactive approach to navigating postage rates and managing your print and direct mail through tariff uncertainty? Contact Marketing.com’s experts to for com for a campaign review or cost optimization consultation.