E-commerce
September 18, 2026
Are you wondering why the USPS prioritizes revenue over parcel volume?
The answer lies in one sentence: the USPS is raising its prices to maximize its revenue, even if it means carrying fewer parcels. For an e-commerce merchant, this can translate into shipping rate increases, especially before the holidays.
This change of course is strategic: the US postal agency is going through a liquidity crisis and is using pricing as its main lever. Understanding this logic helps you anticipate your costs and adjust your margins.
So why does the USPS prioritize revenue over volume? On the agenda:
What are the USPS financial results for the last quarter?
How does the increase in prices compensate for the drop in volumes?
What impact does this strategy have on e-commerce merchants?
How does Qstomy help manage shipping costs?
What checklist should be adopted before the next rate hike?
Let's go.
Summary
What are the USPS financial results for the last quarter?
USPS has released its results for the third fiscal quarter, ended June 30, 2026. Operating revenue reached $19.9 billion, up 6.1% compared to the same period last year. The net loss narrowed to $2.5 billion, compared to $3.1 billion previously.
The shipping and packages segment generated $8.25 billion in revenue, an increase of $588 million, or 7.7%, year-over-year. These figures show a notable improvement, even though the agency remains structurally in deficit.
For a merchant, these results indicate that USPS is actively seeking to strengthen its financial health. The increase in revenue is not driven by an increase in volume, but by a more aggressive pricing strategy. This trend is part of a broader turnaround plan, where each service is evaluated based on its profitability. Merchants must therefore monitor these indicators to anticipate future rate adjustments.
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How does the rise in prices offset the decline in volumes?
The key takeaway from this quarter is simple: parcel volume dropped by 55 million units, representing a 3.4% decline. Yet, shipping revenues increased by 7.7%. How is this possible? Thanks to higher prices.
The Ground Advantage service contributed to this growth, as did a temporary price hike related to transportation applied in April 2026 for certain parcel services. Clearly, the USPS is making more money while carrying fewer parcels.
Postmaster General David Steiner confirmed this: "All statistics show that we have not yet reached the point where we should change our pricing strategy. We still have increases to take in the market." This statement highlights that the price hike is not an accident, but a deliberate decision. For e-merchants, this means that shipping costs could continue to rise, even if volumes remain stable.
Why is the USPS raising its prices despite declining volumes?
The USPS applies a profitability logic, comparable to that of airlines or supermarkets. These companies adjust their prices to maximize their financial returns, not to sell the largest possible quantity.
David Steiner explained this during the board of directors meeting: "Until now, applying these basic principles has favored price increases, even if volumes have slightly decreased." The postal agency compares itself to the private sector, which operates under different rules.
This approach is a paradigm shift. For years, the USPS sought to increase its volumes to offset the decline in mail. Now, it prioritizes the margin on each shipment rather than the number of shipments. This strategy, although risky, aims to stabilize finances in the long term. Merchants must understand that the USPS will not go back, and adapt their own strategy accordingly.
What is the impact of this strategy on postal rates?
Regulations limit USPS's ability to raise prices on its monopoly products, such as First-Class Mail. However, the agency has broader leeway than private carriers for its shipping services.
First-Class Mail illustrates this trend well: its revenue increased by 4.3% during the quarter, while its volume dropped by 3.5%. The same logic applies to packages.
For merchants, this means that USPS shipping rates could continue to rise. It is prudent to factor these increases into your margin calculations, especially if you regularly ship lightweight packages. By monitoring USPS announcements and adjusting your prices accordingly, you can mitigate the impact on your profitability.
What impact does this strategy have on e-commerce merchants?
For years, the USPS was an attractive carrier for lightweight residential packages and deliveries to remote areas. The idea was that packages filled trucks and sorting centers that the agency had to maintain anyway.
David Steiner disputes this logic: maximizing package volume does not mean maximizing revenue. During the quarter, the USPS processed 55 million fewer packages while earning 588 million dollars more. For the agency, this is a favorable trade-off.
This change in incentive may affect e-commerce shippers. The USPS still needs packages, but it no longer wants them at any cost. If it can earn more by carrying less, it will. Merchants must therefore diversify their options and not rely solely on the USPS for their shipments.
Is the USPS business model sustainable?
David Steiner also emphasized a crucial point: even an increase in revenue cannot solve the structural problems of the USPS. "The agency is supposed to be self-sufficient while fulfilling missions that do not cover their costs," he said.
He calls for a reform of the business model, which has produced an imbalance between costs and revenues for 17 years. According to him, this will require intervention from the US Congress.
In the meantime, merchants should expect further postal rate increases, especially before the holiday peak season. Proactive planning is essential to protect your margins. Stay informed of legislative developments and USPS decisions to adjust your strategy in real time.
How to anticipate USPS rate increases in your store?
Faced with this price increase strategy, you can act in several ways. First, monitor USPS rate announcements, especially as the holidays approach. Next, regularly compare offers from private carriers like FedEx or UPS.
Next, adjust your shipping costs. You can offer free shipping starting from a certain cart amount, or integrate shipping costs into your prices. Test different options to find the right balance.
Finally, optimize your packaging. Lighter and more compact packages reduce shipping costs. This partially offsets rate increases and improves your margin. Also consider consolidating your shipments to benefit from volume discounts.
What are the alternatives to USPS for your shipments?
USPS remains a relevant choice for many shipments, but it is wise to diversify your carriers. Services from FedEx, UPS, or DHL may be more competitive for certain types of packages or destinations.
Private carriers often offer discounts for high volumes. If you ship a lot, negotiate your rates. Some online shipping platforms also allow you to compare prices in real time.
For international deliveries, services like DHL Express or UPS Worldwide may be more suitable. Evaluate your specific needs: weight, delivery times, destinations, and choose the most cost-effective carrier for each situation. A multi-carrier approach gives you more flexibility and negotiating power.
How to optimize your shipping costs on a daily basis?
Optimizing shipping costs involves several levers. First, automate your labeling and tracking processes. This reduces errors and saves you time. Use tools that integrate rates from multiple carriers.
Next, analyze your shipping data. Identify the most expensive destinations and the types of packages that weigh on your margin. Adjust your delivery offers accordingly.
Finally, think about reverse logistics. Returns are expensive. Set up a simple and cost-effective process to manage returns, for example by offering drop-off points rather than home collection. Efficient return management reduces your costs and improves customer satisfaction.
What is the future of the USPS pricing strategy?
David Steiner was clear: the USPS still has price increases to capture from the market. The revenue maximization strategy will therefore continue, at least in the short term. Merchants must prepare for it.
The postal agency is also seeking more authority over its pricing. A reform of the business model is necessary, but it depends on Congress. In the meantime, pricing remains the USPS's primary lever.
For e-merchants, this means one thing: shipping costs will likely continue to rise. Integrate this trend into your pricing and margin strategy now. Stay flexible and ready to adjust your offers to remain competitive.
How does Qstomy help manage shipping costs?
Qstomy, the Shopify AI agent, helps you optimize your shipping management. Thanks to its package tracking features, your customers are kept informed of their order status in real time. This reduces support requests related to deliveries.
The agent can also help you increase your average cart value. By recommending complementary products at the time of purchase, it increases the value of each order. A higher cart more easily offsets larger shipping costs.
Finally, Qstomy handles customer service inquiries. It answers questions about delivery times, returns, or shipping issues, freeing up your time to focus on your business. With Qstomy, you can improve the customer experience while reducing your operational costs.
Which checklist should you adopt before the next price increase?
Here is a checklist to prepare your shop for future USPS rate increases:
Analyze your current shipping costs by product and destination.
Compare private carrier rates for your main shipment types.
Adjust your shipping fees or prices to preserve your margin.
Optimize your packaging to reduce weight and volume.
Automate your shipping processes to increase efficiency.
In brief
USPS is now prioritizing revenue over volume. Rates will continue to rise, even if parcel volume decreases. Anticipate these increases to protect your margins.
FAQ
Will USPS continue to raise its prices? Yes, the Postmaster General has indicated that further increases are planned.
Should I switch carriers? Not necessarily, but regularly compare offers to find the best value for money.
How can Qstomy help me? By automating parcel tracking and increasing your average basket value, Qstomy offsets the impact of rate increases.
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Enzo
September 18, 2026
