At MailSmart Logistics, we are closely monitoring a significant USPS proposed change that could impact mailers who utilize Network Distribution Centers (NDCs) for drop shipping.

*NDCs are larger, centralized USPS facilities handling mail for a vast area while SCFs are smaller, regional processing and distribution centers for a specific area.

What’s Changing?

The USPS has proposed significant changes to its mailing standards, including the elimination of the Destination Network Distribution Center (DNDC) discount for Marketing Mail, Periodicals, and Bound Printed Matter, effective no earlier than July 2025 and would result in:

Increased Postage Costs: The removal of the DNDC discount may lead to higher postage expenses for mailers who previously utilized this discount.

Operational Adjustments: Mailers may need to revise their logistics and mailing strategies to align with the new entry options and associated discounts

If approved, mailers who currently prepare NDC volume and claim this discount will have three alternative options:

  • Origin Entry (no entry discount)
  • Destination Sectional Center Facility (DSCF) Entry Discount
  • Destination Delivery Unit (DDU) Entry Discount

While this proposal is not yet finalized, it is rare for USPS to reverse course once a change is proposed.

For many mailers, drop shipping to NDCs has been a cost-effective logistics strategy. Without the DNDC discount, the pricing advantage of drop shipping could diminish, leading to:

  • Increased postage costs for some mailers
  • A potential shift to commingling as a more attractive option
  • More volume moving to SCF entry for cost efficiencies

Our Commitment to You

At MailSmart Logistics, we manage mail data and logistics for a wide range of clients, and we facilitate a significant volume of drop shipped mail pieces. We understand that these changes could make the July 2025 postage increase feel even steeper for some mailers. While it’s difficult to quantify the exact impact, we want to ensure that our clients are informed and prepared.

Contact Us to Discuss Your Options

We are actively engaging with industry groups, monitoring USPS announcements, and working with our logistics partners to evaluate the best strategies for our clients. We will keep you updated as more information becomes available.

If you have any questions about how this change could impact your mailings or would like to explore alternative strategies, please don’t hesitate to reach out. Our team is here to help you navigate these changes and ensure you’re getting the best possible postage rates.

Jeff Roberts
Director of Operations
MailSmart Logistics