Online sellers are reporting an uptick in packages being rejected at drop-off as “unpaid,” as USPS ramps up enforcement targeting counterfeit and unpaid labels.
A Postal Service Office of Inspector General (OIG) management alert issued earlier this month highlights the growing scale of the issue, with sharp increases in recent months as USPS continues to report significant quarterly losses.
While sections of the report are redacted, the size and scope of the problem are substantial: the Postal Service says it processed more than 10.7 million packages with unpaid postage tied to counterfeit labels between March 2025 and February 2026.
Between November 2025 and February 2026 alone, USPS identified an additional 8 million packages, representing a roughly 609% increase in volume in just four months. The surge began in November, when the volume of these shipments doubled month-over-month, and has continued climbing into 2026.
The financial impact is significant with the OIG estimating USPS lost approximately $46.3 million in revenue over that same four-month period, including ~$28.3 million in February alone.
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