The Postal Regulatory Commission (PRC) has issued a ruling that denies the USPS’s request to begin zone-based (rather than origin-entry-based) pricing for Marketing Mail and Outside County Periodicals.
In June, the USPS filed a request to introduce new A, B, C and D zoning of origin-entered mail, and for mail moving between zones A-D to a Destination Sectional Center Facility (DSCF). The filing argued that the new system should not be subject to workshare pass-through rules that mandate dropship discounts tied to costs avoided by dropshipping. The USPS sought to reserve discount pricing discretion for itself in the zoned system.
The PRC disagreed, rejecting the USPS’s proposal “because it fails to recognize transportation worksharing between Zones A-D and between Zones A-D and the DSCF.”
The PRC added that if the USPS continues to want to replace origin-entry with zone-based pricing, “the Commission directs the Postal Service to develop and submit . . . a methodology for measuring avoided costs” that would be the basis for new workshare discounts.
The USPS said it is evaluating its options in the wake of the ruling.
Side note: The zoning request that was denied is separate from the USPS’s request to simplify Periodical rates by adopting a structure similar to that of Marketing Mail. The PRC has approved that request, which is likely to be implemented in July 2026
