USPS Boosts Lightweight Package Offerings With New Ground Advantage Service Agreements
USPS is cranking up the competition for small and lightweight packages, hoping to woo shippers to Ground Advantage with new, streamlined Negotiated Service Agreements.
The Post Office issued an informational alert on December 30th, advising shippers that NSAs for 2025 will offer discounts specifically aimed at lower size and weight as part of the Delivering for America plan to increase volume in competitive shipping products.
USPS Offers Simplified, Streamlined Agreements with No Additional Fees Tailored for Lightweight
We are excited to offer the best shipping rates, unmatched coverage, and exceptional service for our light weight packages.
With USPS Ground Advantage, packages up to a pound are priced by the ounce and require no sortation – making it the most efficient and cost-effective solution for your business. Ground Advantage uses the Postal Service’s maturing network to provide 2-5 day service for a great price.
Our new, simplified and streamlined contract agreements are tailored for lightweight shipments,and with no additional fees, USPS delivers unmatched value for your shipping needs.
Whether you are a large, medium, or small shipper, our sales force is energized and ready to discuss how you can secure a customized Negotiated Service Agreement to meet your needs.
Negotiated Service Agreements are contracts shippers have directly with USPS to govern rates on services like Priority Mail and Ground Advantage which compete with similar service from other carriers like UPS, FedEx and DHL.
While notice of NSAs is required to be placed on the public docket of the Postal Regulatory Commision, details of the agreements including company names and exact discounted rates are redacted, so it's difficult to say how these changes will filter down to online sellers - but it's a fair bet those who purchase labels directly from marketplaces like Amazon, eBay, and Etsy or shipping providers like Pirate Ship will be seeing those discounts reflected for small and light packages soon.
The announcement comes as USPS continues taking steps to move away from handling last mile delivery for hybrid services like UPS Surepost and FedEx SmartPost/Ground Economy like discontinuing use of dual labels and cutting discounts to consolidators.
Those changes have forced the other carriers to make adjustments to start handling more of their own last mile deliveries in network or pass on significant rate increases to shippers - like the surprise Christmas eve announcement from UPS that Mail Innovations rates will be going up ~25% on January 1st, with small and light packages taking the largest hit.
Liz Morton
UPS put the blame for the rate hike squarely on USPS and now it would appear USPS is firing back by leveraging the situation to their advantage with this targeted announcement touting lower rate and no additional fees.
Postmaster General Louis DeJoy says the previous agreements with consolidators that enabled these hybrid services were no longer in the best interest of the US Postal Service, so these changes are necessary to bring NSAs into alignment with the Delivering for America plan to create an efficient network and grow USPS' own end-to-end ground package product.
As we head into 2025, are you finding USPS Ground Advantage rates and delivery times to be competitive or better than other carriers? Let us know in the comments below!
