What shippers need to know about the new regional delivery service — and how it may (or may not) fit into their strategy.
In a climate of rising shipping costs and escalating consumer expectations for fast, affordable delivery, the logistics landscape continues to shift. Earlier this year, the U.S. Postal Service introduced Priority Mail® Next Day for business, an overnight parcel service aimed at offering businesses — especially e-commerce and regional retailers — a competitive and cost-effective alternative for last-mile delivery (usps.com).
But beyond the headlines and rollout announcements, how should shippers evaluate this service? And more importantly, how does it fit into the broader fulfillment and packaging strategies that businesses rely on today?
What USPS Is Offering
Launched in March and already expanded into more than 60 markets, Priority Mail® Next Day targets deliveries within 150 miles of USPS processing and distribution centers. The service is available only via Negotiated Service Agreements (NSAs) with USPS and is geared toward businesses able to meet certain volume and drop-off requirements (usps.com).
Key features include:
- Regional Overnight Delivery: Within 150 miles of participating USPS centers.
- NSA-Only Access: Custom pricing negotiated directly with USPS.
- Weight Limit: Parcels up to 20 pounds.
- Flat or Customized Pricing Options per NSA (supplychaindive.com, usps.com).
- Projected Reach: Up to 295 million customers at full rollout (supplychaindive.com).
Where It Works — and Where It Doesn’t Yet
Currently, the service is operational in 62 markets, covering roughly 75 million people and 10 million businesses (supplychaindive.com). While that number is expected to grow, the service remains regionally limited, which may constrain its value for nationwide brands or those with multiple fulfillment centers.
Additionally, access is not plug-and-play. Businesses must:
- Negotiate and qualify for an NSA.
- Meet USPS cutoff windows (typically by 6 p.m.).
- Drop off shipments at participating locations, which may require transportation planning (usps.com, supplychaindive.com, traxtech.com).
How It Compares to Private Carriers
USPS is positioning the service as a leaner alternative to FedEx and UPS, both of which rolled out average rate increases of 5.9% for 2025 (partnership.com). Crucially, Priority Mail® Next Day does not currently include fuel surcharges or residential/rural delivery surcharges, simplifying pricing (supplychaindive.com).
However, FedEx and UPS offerings include broader national coverage, money-back guarantees, sophisticated APIs, and enhanced end-to-end tracking — features that may currently be unmatched in USPS’s regional service.
What Businesses Should Consider
While USPS’s offering may appear attractive, it isn’t universally ideal for all businesses. Businesses should evaluate:
- Regional vs. national delivery needs
- NSA negotiation prospects
- Logistics around cutoff times and drop-off
- How well the service integrates with current fulfillment systems
- Potential impact on automation and existing carrier workflows
For operations using multi-carrier strategies or advanced automation, adding a USPS-specific lane could introduce complexity if systems aren’t optimized for flexibility.
Talk to Tension
If you’re assessing whether USPS’s new service aligns with your delivery and packaging strategy, let’s talk. Our experts are there to guide you and answer any questions you may have. Contact us today.
