The U.S. Postal Service collected 5.1% more shipping revenue in fiscal 2026 while delivering 5.3% fewer packages, according to results it released Nov. 10.
For the store owners I work with at Ecommerce Paradise, the number that matters is revenue per package. Divide USPS’s reported shipping revenue by its reported volume and the average package brought in about $5.28 this year against $4.76 last year. That is an 11% jump by my math, and it is the price trend your 2027 postage budget has to absorb before USPS adds a weekly fuel fee in January.
Two things sit behind those numbers. One is a pricing push that is still rolling out. The other is a warning to Congress that mail service could slow. UPS has already posted its own increases for next year, and I broke those down in my look at UPS’s 2027 fees and the $7.10 residential surcharge.
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USPS Shipping Revenue Rose $1.7B on 359M Fewer Parcels
USPS reported results for the fiscal year ended Sept. 30 on Nov. 10, according to its release on GlobeNewswire. Operating revenue came in at $82.9 billion, up 3.0% from $80.5 billion a year earlier. Operating expenses fell 0.4% to $89.4 billion. The net loss was $6.5 billion, an improvement of $2.5 billion from $9.0 billion in fiscal 2025.
The parcel line is the one that matters for store owners. Shipping and Packages revenue reached $34.1 billion against $32.4 billion, a gain of $1.7 billion or 5.1%. Volume dropped to 6,454 million pieces from 6,813 million, a loss of 359 million or 5.3%. USPS credits Ground Advantage and a time-limited, transportation-related price increase for the revenue gain.
The other big categories followed the same pattern. First-Class Mail revenue rose 1.2% to $26.2 billion on 5.1% fewer pieces. Marketing Mail revenue rose 5.3% to $16.7 billion on 1.1% fewer pieces. Every category earned more while moving less.
The financial warning came the same day. Per Reuters, via SRN News, USPS asked Congress for $2 billion in support and reimbursements for what it calls unfunded requirements. Postmaster General David Steiner said, “We will need to make drastic changes in the number of post offices and marketing mail service levels.” Reuters reported that Steiner also said USPS could slow mail delivery and would have full contingency plans by March.
Reuters also reported that USPS has lost more than $120 billion since 2007 and that first-class volume of 39.8 billion pieces is the lowest since 1965. Chief Financial Officer Luke Grossmann said in the release that actions alone cannot fix what he called “an outdated business model.” USPS is also asking for legislative help, including a higher debt limit than the $15.0 billion statutory cap that has not moved since 1992.
On pricing, the release does not name a January 2027 increase. It says price increases “have been and will continue to be part of” USPS’s long-term strategy.
From the 8% Surcharge to the Weekly Fuel Fee: How USPS Got Here
This did not start in November. USPS put an 8% temporary transportation-related increase on its competitive package services on April 26. It runs through Jan. 17, 2027, according to Supply Chain Dive. USPS said at the time that the charge was “less than one-third of what our competitors charge for fuel alone.”
In August, USPS proposed holiday increases for Oct. 4 through Jan. 17 on top of the 8% charge. Value Added Resource reported that commercial rates for packages up to 3 pounds in zones 1 through 4 were set to rise $0.40, up from a $0.30 add-on last year. FreightWaves reported a proposed 6% peak-season surcharge against 4% to 5% last year, and said the Postal Regulatory Commission still had to review it. Both reports date to August, so check the final rates in your shipping app.
Third-quarter numbers showed the push working. Package revenue rose 7.7% on a 3.4% volume decline, and the quarterly net loss was $2.5 billion, per Value Added Resource. Steiner has said USPS has “more price to take in the marketplace.”
On Oct. 26 USPS announced a weekly variable fuel surcharge starting in January 2027 on Ground Advantage, Priority Mail, Priority Mail Express and Parcel Select. It applies to domestic shipments only and resets weekly using diesel and jet fuel prices from the Energy Information Administration, per Supply Chain Dive. USPS has not published a percentage, and I covered the mechanics in USPS Adds Weekly Fuel Surcharge to Parcels in January.
Cash is the pressure behind all of it. USPS said in August that its cash conservation plans, including suspended retirement contributions, should keep it operating through at least August 2027, though it still lacks the liquidity to cover every obligation, per Value Added Resource. An agency that short on cash has every reason to keep raising what it charges for parcels.
Shippers were already feeling it. AFS Logistics and TD Cowen found that ground and express parcel costs rose 5% to 6% in the second quarter, according to FreightWaves, and many businesses were reportedly shifting volume to independent carriers.
USPS has a case. The net loss narrowed by $2.5 billion, revenue grew in every category, and Reuters named post offices and marketing mail as the likely cuts. USPS also argues its fuel charge runs well below the competition, and the gap is real when you look at FedEx fuel surcharges that jumped to 32%. The release gives no split between price and mix, so the 11% figure blends both.
What 11% More Revenue Per Parcel Means for Your Store
My read: revenue per package is a blend, not a rate card. It includes weight, zone and service mix, so your own labels may have moved more or less than 11%. It is still the cleanest signal I have that USPS is collecting meaningfully more for each package it carries.
Timing matters too. The 8% charge started April 26, so it touched roughly 43% of the fiscal year by my count. In fiscal 2027 it covers only Oct. 1 through Jan. 17, about three and a half months, and then the weekly fuel fee takes over. Whether that fee lands above or below 8% depends on diesel and jet fuel, and USPS has not said where it starts. Supply Chain Dive ties the fuel pressure this year to the Iran war and Strait of Hormuz disruptions, so I would not assume a drop.
Here is hypothetical math, not reported data. Say your store ships 300 USPS parcels a month at an $11 average base postage, which is $3,300 a month. An 11% rise adds $363 a month, or $4,356 a year. A weekly fuel fee at 4%, 8% or 12% of base postage would add $132, $264 or $396 a month on top. That is real money for one store, and it compounds across returns labels and replacement parts.
Here is where I’d draw lines. If USPS postage is under 3% of your revenue, take the increase and move on. If it is above 3%, rate shop every SKU under 5 pounds before January. If you offer free shipping on small items, rebuild that offer now, because a fixed promise cannot absorb a fee that resets every week. Those thresholds are my rule of thumb, not an industry standard.
High-ticket stores feel this differently. Most big-ticket goods ship LTL or freight, so USPS touches your accessories, replacement parts, samples and returns more than your main product. The bigger exposure is indirect, because your suppliers face the same carrier repricing. Saia renewed LTL contracts 10.8% higher this month. Earlier, LTL rates topped 80% above 2018 in an AFS index.
Amazon is moving the same direction on its side, with FBA fees rising $0.19 a unit from Jan. 15. Every carrier and platform is repricing at once, which is why I treat shipping as a margin line you review every quarter and not a setting you configure once. If you are new to the freight side of this model, start with my guide to what high-ticket dropshipping is.
Ask your dropship suppliers two questions this week. How do they ship anything under 50 pounds, and do they pass fuel fees through to you? If a supplier builds shipping into the wholesale price, ask when that price list updates. A supplier that reprices without telling you hits your margin first and your inbox second, so get the date in writing.
Demand is not helping. Consumer confidence rebounded while big-ticket purchase plans kept falling, which I covered in Confidence Jumps to 91.7, but Big-Ticket Plans Keep Falling. Rising postage into soft big-ticket demand squeezes the margin that funds your ad spend.
Now the mail angle. Steiner named post offices and marketing mail as the places USPS will cut and said delivery could slow. Marketing mail is not your problem. Your bank statements, state filings and tax notices are, because they travel through the same system. If you run the store from a home address or a rural PO box, slower mail means notices arrive later while the deadlines stay the same. A street address with mail scanning lets you read each item the day it lands. I walk through the options in my comparison of virtual business addresses for an LLC.
Four markers will tell you whether I am right. USPS publishes each weekly fuel percentage three to five days before it applies. The 8% charge and the holiday increases end Jan. 17, 2027. A new Congress takes office in January and has to decide whether to help USPS, per Reuters. And USPS says it will have contingency plans ready by March, which is when we find out how deep the service cuts go and whether parcels are touched.
If you would rather not make every one of these calls yourself, my team builds high-ticket stores for you. See how the done-for-you turnkey store build works.
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5 Shipping Moves to Make Before Jan. 17
Five moves to make this week:
- Export 90 days of USPS postage from Shopify or your label app and divide by parcels shipped. Compare it with the same 90 days last year. Shopify also moved shipping rates into Markets this fall, so check your rate tables against what changed in the Markets shipping rollout.
- Rate shop every SKU under 5 pounds in Easyship, then add a fuel fee at 4%, 8% and 12% of base postage to each USPS quote. If you want other label tools to compare, I ranked them in my ShipStation alternatives guide.
- Rebuild your free-shipping threshold with a fuel fee in the math. Then update the promise on your site using the wording in my dropshipping shipping policy guide.
- Turn on delivery-delay notifications in AfterShip so a slow parcel becomes an email from you instead of a dispute from the customer. My chargeback prevention guide for high-ticket stores covers the rest.
- Move your store’s bank, state and tax mail to a street address with mail scanning, then update the address with your bank and the agencies that mail you notices. The steps are in how to get a business address without renting an office.
UPS is moving on the same calendar, with a fuel table reset and a rate lift covered in UPS Resets Fuel Table Nov. 2, Lifts Rates 5.9% Dec. 21. Compare both carriers in the same pass so you only rebuild your shipping math once.
Frequently Asked Questions
How much did USPS earn per package in fiscal 2026?
Shipping and Packages revenue of $34.1 billion divided by 6,454 million pieces is about $5.28, against about $4.76 in fiscal 2025. That is my division of USPS’s reported figures, a blended average and not a rate card.
Does this change what I pay per label today?
Not directly. The release reports revenue, not list prices. Your cost today reflects the 8% temporary increase through Jan. 17, 2027 and any holiday increases in effect, so check the rate table in your shipping app.
Will USPS slow parcel delivery?
Steiner said USPS could slow mail delivery, and Reuters reported full contingency plans are due by March. The cuts he named were post offices and marketing mail service levels. Reuters did not name parcels, so treat a parcel slowdown as a risk to watch and not a forecast.
Should a high-ticket store care about USPS?
Yes, mostly through accessories, parts, returns and supplier pass-through costs. Big items usually ship freight, which is why LTL numbers matter more for your main product. If you are still choosing products, start with my free high-ticket niches list and check how each category ships.
What is the USPS weekly fuel surcharge?
It is a percentage of base postage on Ground Advantage, Priority Mail, Priority Mail Express and Parcel Select, domestic only. It starts in January 2027 and resets weekly from diesel and jet fuel prices. Per Supply Chain Dive, USPS will publish each week’s diesel percentage three to five days ahead.
How should I track postage in my books?
Give postage its own cost line so the January change shows up as a number. QuickBooks handles that. For bookkeeping built around ecommerce, look at Finaloop.
Not sure which shipping cost to fix first? Get 1-on-1 coaching on your high-ticket store. Get the coaching details →
I will update this when USPS posts the weekly fuel percentage and its January pricing. If you ship through USPS today, pull your label history this week and get your own revenue-per-package number. Subscribe to the YouTube channel for daily breakdowns. More breaking news coming through the day.
Related Articles
If this was useful, these go deeper:
- USPS Adds Weekly Fuel Surcharge to Parcels in January
- UPS Posts 2027 Fees: Residential Surcharge Hits $7.10
- Dropshipping Shipping Policy: What to Include and Sample Wording (2026)
- UPS Resets Fuel Table Nov. 2, Lifts Rates 5.9% Dec. 21
- A Beginner’s Guide to Ecommerce Shipping
Trevor Fenner is an ecommerce entrepreneur and world traveler from Seattle, Washington, and the founder of Ecommerce Paradise, a platform focused on helping entrepreneurs build and scale profitable high-ticket ecommerce and dropshipping businesses. With over a decade of hands-on experience, Trevor specializes in high-ticket dropshipping strategy, niche and product selection, supplier recruiting and onboarding, Google & Bing Shopping ads, ecommerce SEO, and systems-driven automation and scaling. Through Ecommerce Paradise, he provides free education via in-depth guides like How to Start High-Ticket Dropshipping, advanced training through the High-Ticket Dropshipping Masterclass, and fully done-for-you turnkey ecommerce services for entrepreneurs who want a faster, more hands-off path to growth. Trevor is known for emphasizing sustainable, real-world ecommerce models over hype-driven tactics, helping store owners build scalable, sellable, and location-independent brands.
He maintains homes in Seattle and Bali, spends most of the year overseas, and usually returns to Seattle for about a month each summer.
