What Are USPS NSA Rates and Why Do They Matter?

Over the past few years, shipping rates have increased by more than 30% across major carriers, and many ecommerce businesses are still paying full price. The truth is, if you’re shipping thousands of orders a month and not using negotiated carrier rates, you are likely leaving serious money on the table, whether it’s with USPS, FedEx, or UPS.

Every major ecommerce brand you know ships under a custom contract. The secret is Negotiated Service Agreements (NSAs) and volume-based rate programs with top carriers.

When it comes to shipping, every cent counts. As a business owner, finding ways to reduce shipping costs without sacrificing service is critical. One of the most overlooked but powerful tools available to high-volume shippers is the NSA model, or its equivalent, offered by USPS, FedEx, and UPS.

Let’s break down what an NSA is, why it matters, how it came to be, and how businesses like yours can benefit from custom carrier pricing today.

What Is an NSA?

An NSA, or Negotiated Service Agreement, is a custom contract between the United States Postal Service (USPS) and a mailer. These agreements allow businesses to access USPS commercial pricing, rebates, or custom rate structures based on their shipping volume and behavior.

While USPS is the only carrier that uses the term “NSA,” both FedEx and UPS offer negotiated rates that serve the same purpose. These private agreements reward shipping volume and consistency with discounted rates and flexible terms, making them essential for ecommerce operations at scale.

If you are growing quickly, it is worth talking to all three carriers, USPS, FedEx, and UPS, about how to qualify for volume-based pricing that reflects your actual shipping behavior.

Why Do Negotiated Rates Exist?

Before NSAs and negotiated agreements, USPS and other carriers relied on fixed rate cards where everyone paid the same price based on weight and zone. That worked for small-scale shippers but didn’t account for the needs of fast-scaling ecommerce companies.

USPS introduced NSAs to offer customized pricing in exchange for volume and reliability. FedEx and UPS adopted similar strategies. Even though the agreements go by different names, the principle is the same. The more you ship, the more you can save.

FedEx and UPS volume discounts are based on factors like:

• Monthly or annual shipping volume
• Average package size and weight
• Service level usage for example, Ground vs Express.
• Origin and destination zones

Just like with USPS NSAs, these negotiated agreements can lead to significant per-shipment savings, especially when applied consistently across thousands of orders.

Real Savings from a USPS NSA

One SKULabs customer shipping around 12,000 small parcels per month was paying standard USPS Priority Mail rates through a third-party platform. After negotiating a USPS NSA and applying those rates directly in SKULabs, they started saving over $3,200 per month on shipping alone.

The best part? They didn’t need to switch platforms or carriers. They simply connected their existing agreement and let SKULabs apply those rates in real time.

Comparing Standard vs. NSA Rates

Here is a simplified example comparing standard USPS pricing to a possible NSA rate:

Similar savings are available from FedEx and UPS through negotiated pricing programs. If you are currently paying retail rates or using a shipping platform that adds a markup, you are likely overspending.

The Power of Custom Carrier Pricing

The biggest benefit of negotiated shipping rates is that your pricing reflects your actual business needs rather than a generic rate card.

For example, if you consistently ship 8,000 small parcels per month using FedEx Ground, you can work with a FedEx rep to structure pricing that reduces per-shipment costs and improves delivery timeframes. The same logic applies to UPS customers who primarily use UPS Ground Residential or SurePost.

Instead of relying on third-party shipping aggregators that add fees or limit your flexibility, SKULabs lets you bring your own rates from USPS, FedEx, or UPS and apply them directly across every order.

That means:

• No per-label markup
• No surprise fees
• No guessing if you are getting the best rate

How Do You Qualify for a USPS NSA or Carrier Discount?

Here’s what it typically takes to qualify:

For USPS NSA:

• Ship a high volume of packages each month
• Provide shipping forecasts and maintain consistency
• Meet operational thresholds like accurate addresses or timely pickups

Your USPS rep will then work with you to draft a contract that includes:

• Volume requirements
• Pricing tiers or rebates
• Terms and penalties if expectations aren’t met

For FedEx and UPS:

• Reach out to a carrier rep directly
• Share your historical shipping volume
• Discuss service preferences such as Express or Ground
• Get a custom pricing proposal

Many businesses are surprised by how attainable these agreements are. If you are shipping at least a few hundred orders per week, you may already qualify for volume-based rates that could save you thousands over the course of the year.

Why Negotiated Rates Matter in 2025

Shipping remains one of the most controllable expenses in ecommerce. But with base rates climbing and customer expectations rising, not having a negotiated shipping agreement can severely hurt your margins.

Amazon and other large marketplaces have set the bar for fast and affordable delivery. Your business needs every tool available to keep up, and carrier-specific negotiated pricing is one of the most impactful.

Whether you are using USPS, FedEx, UPS, or a combination, the ability to control your per-shipment costs gives you a competitive edge in a crowded market.

How SKULabs Helps

SKULabs is built to help ecommerce businesses make the most of negotiated carrier rates. Whether you already have custom pricing in place or are looking to start, SKULabs can:

• Automatically apply your USPS, FedEx, and UPS negotiated rates
• Avoid per-label fees charged by third-party platforms
• Track shipments and costs across all carriers in one place
• Scale your operations without scaling your expenses

Already have a USPS NSA, FedEx discount, or UPS volume-based rate? Connect it directly inside SKULabs and let our system do the rest.

Take Action: Lower Your Shipping Costs Today

If you’re shipping at scale, now is the time to take control of your shipping spend.

• Talk to your USPS, FedEx, or UPS rep about volume-based discounts
• Secure a Negotiated Service Agreement or custom rate structure
• Connect your rates directly in SKULabs and start saving immediately

Shipping costs will continue to rise. Your ability to lower them depends on taking the right steps now, and negotiated carrier rates are one of the most powerful tools available to do just that.