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USPS takes on FedEx and UPS with Next Day priority service

Jan 21, 2025 · 2 minutes read

Until now, UPS and FedEx have been the go-to carriers for next-day deliveries. In 2025, that may change. In a January 6, 2025, industry alert titled The Postal Service: Delivering More in 2025, the United States Postal Service introduced Next Day Priority, a service that will reach 87% of the U.S. population, or nearly 300 million people each day.

Today, we'll discuss what the Postal Service has shared about this new service so far, additional USPS optimizations, and how you can integrate these services into your parcel plan.

What we know about USPS Next Day Priority

This new service is available to every home and business within 150 miles of a Regional Processing and Distribution Center. It will send the parcels to its 200 Local Processing Centers for overnight delivery to Postal Delivery Units before delivering them to homes and businesses.

USPS says this service offers affordable rates, broad coverage, and customized solutions through Negotiated Service Agreements (NSAs). Next Day Priority does require volume minimums, and its industry alert said it's perfect for e-commerce retailers and "designed for businesses with minimum daily shipping volumes that can meet defined cutoff windows."

What other changes can I expect in 2025 from USPS?

In another bid to win small-to-mid-sized businesses, USPS is expanding its USPS Connect service, offering same-day and next-day solutions for those that ship a daily minimum of 10 pieces, which are 10 pounds or less. USPS tailored this service to businesses with NSAs, with the goal of empowering local shippers "to expand like national shippers to operate with local precision—all at highly competitive rates."

In its Delivering More alert, USPS announced, "With the introduction of USPS Ground Advantage, the Postal Service has reshaped how businesses and the public ship across the U.S., delivering improved service and affordability." The service, launched in July 2023, provides 2-to-5-day shipping from coast to coast. This year, USPS says it will continue to optimize its Ground Advantage, "integrating smarter strategies to make shipping seamless, cost-effective, and faster than ever."

Can I negotiate a contract with USPS?

Whereas UPS and FedEx are motivated to negotiate lower rates and reduced surcharges with customers, the United States Postal Service is less inclined. Except in the case of securing an NSA based on volume and mail preparation requirements, USPS pricing is set in stone. However, with USPS Connect and Next Day Priority tied to NSAs, they may be more motivated to secure more of this type of contract.

How can I see all of my shipping data in one place?

ShipRx offers an auditing service for FedEx and UPS that automatically tracks packages and recoups costs when service failures occur. You can add USPS to your parcel audit for just pennies per package to track all your packages in one place.

With ShipRx parcel audits, you can create an all-in-one tracking dashboard. Contact us today for a free savings analysis and discover how to add USPS to your parcel audit for a 360° view of your shipments.

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Todd ShipRx Partner