The USPS Marketing Mail rate increase that took effect on July 13, 2025, is sending ripple effects through direct marketing budgets everywhere. But the headlines about a 7.4% average increase only tell part of the story. Beneath the surface lies a structural shift that makes commingling one of the most valuable tools marketers can use to protect their ROI.
If commingling wasn’t on your radar before, it should be now.
The Hidden Impact of the USPS Rate Hike
It’s not just that postage rates went up, it’s how they went up.
In addition to increasing costs across Marketing Mail formats, USPS also eliminated the discount for mail entered at Network Distribution Centers (NDCs). That means a key level of cost savings is gone, and many marketers are seeing even steeper increases than expected.
The result? Brands that previously relied on NDC entry for efficiency are now being pushed to local entry pricing, which is more expensive and less predictable.
To preserve margins, marketers need a smarter way to qualify for the new lowest-cost entry option: SCF dropship. And that’s where commingling comes in.
What Is Commingling?
Commingling is the practice of combining mail from multiple companies into one larger mail stream that’s sorted by ZIP Code. This consolidated mail volume can then be entered into the USPS system as a single, optimized drop.
Think of it as carpooling for mail: everyone shares the ride, and everyone saves.
Rather than sending a small, fragmented mailing that doesn’t qualify for deep postal discounts, commingling enables marketers to:
· Aggregate volume with others targeting similar regions
· Reach USPS volume thresholds required for discounted SCF entry
· Save on postage and transportation costs
How Commingling Works
Here’s a simplified view of how commingling enables cost savings:
1. Mail is presorted and prepared by sg360° or a similar service provider
2. Mail from different campaigns is pooled and grouped by ZIP Code
3. Sorted trays or pallets are transported directly to SCFs (Sectional Center Facilities)
4. The USPS processes and delivers the mail from that point forward
The process qualifies your mail for workshare discounts normally reserved for much higher-volume campaigns.
Without commingling, many mailings would default to Origin Entry or Local Entry rates, which are now among the most expensive.
Why Commingling Matters More Now
Before July 13, 2025, marketers had options: they could use NDC entry for decent savings even if they couldn’t meet SCF thresholds. But with NDC discounts eliminated, the pricing ladder has changed:
| Entry Method | Pre July 13 Discount | Post July 13 Discount |
| Origin Entry | None | None |
| DNDC Dropship | Moderate | Eliminated |
| SCF Dropship | Best | Still Available |
If your mail volume isn’t high enough in any given ZIP Code region, you won’t qualify for SCF entry on your own. Commingling enables you to share volume with others to hit those thresholds, giving you access to the best available rates.
Additional Benefits of Commingling
Beyond savings, commingling also offers a host of strategic advantages:
· Faster, more predictable delivery: Mail entered closer to the final destination means fewer USPS handoffs and better in-home timing.
· Improved campaign alignment: Timely delivery supports multi-channel coordination with digital, SMS, or in-store efforts.
· Better eligibility for USPS promotions: Automation-friendly mail entered at SCFs often qualifies for additional USPS incentives.
· Greater control over logistics: sg360° manages entry points and delivery schedules for consistency and performance.
Is Commingling Right for Your Program?
If you’re unsure whether commingling would benefit your current campaigns, ask yourself:
· Are your pieces being entered at origin or local post offices?
· Do you have sufficient ZIP Code volume to qualify for SCF dropship on your own?
· Have your postage costs increased more than you anticipated?
· Do you want to improve delivery consistency across campaigns?
If you answered yes to any of these, commingling could be a high-impact option for your direct mail program.
Final Takeaway: Mail Smarter, Not Less
Commingling is an excellent strategic move for protecting your budget while maintaining the scale and delivery performance your brand depends on.
At sg360°, we help marketers optimize their entry strategy, leverage advanced commingling, and reduce direct mail costs without compromising campaign impact.
Want to Know if You Qualify for Commingling Discounts?
Let us evaluate your ZIP Code density, format mix, and entry points and show you how commingling could reduce your costs and speed up delivery.
