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SCF Is Back: USPS to Increase SCF Destination Entry Discounts for 2026
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After a turbulent year for workshare discounts, the industry finally has good news:Â SCF destination entry discounts are coming back.
Following the 2025 elimination of NDC entry and major reductions to SCF incentives, USPS has now announced plans to reinstate SCF pallet destination entry discounts as part of the July 2026 price change.
For mailers, consolidators, and logistics providers, this is more than a policy tweak. This is a strategic shift.
What Happened in 2025 (And Why It Hurt)
In 2025, the former PMG had pushed thru a number of unwelcome changes to the destination-entry network and value proposition:
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Eliminated Network Distribution Center (NDC) entry and discounts
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Removed NDC pricing for Marketing Mail Parcels
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Reduced SCF discount values
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Tightened workshare economics across Market Dominant mail
For printer/mailers, lettershops, and mail owners, that meant:
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100% loss of NDC destination entry options
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Dramatic reductions in SCF entry discounts
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Compressed margins and reduced postage savings
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Reworked logistics models
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Less reward for performing workshare
In short: the economics of dropshipping changed… fast.
What’s Happening in July 2026
Now, USPS has updated its cost avoidance data and allowable discount ranges — and SCF pallet discounts are back in play.
The reinstated categories include:
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Origin Flats on SCF Pallets
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Origin Carrier Route Flats on SCF Pallets
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Origin High Density Flats on SCF Pallets
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Origin Saturation Flats on SCF Pallets
As shown in the USPS July 2026 allowable discount ranges, SCF-level incentives now reflect updated cost avoidance data — restoring meaningful financial value to SCF entry.
What’s Behind the Comeback?
Recent USPS cost studies show that avoided costs at the SCF level increased from FY2024 to FY2025. For example: SCF Flats cost avoidance increased from $0.039 to $0.045 per piece. That increase directly supports the reinstated allowable discount ranges for July 2026.
In other words: The work you perform saves USPS money — and now the discounts better reflect that reality.
Why This Is a Big Deal for Mailers
1. SCF Dropshipping Is Economically Relevant Again
With reinstated pallet discounts, SCF entry becomes a viable optimization strategy for:
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Marketing Mail Flats
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Carrier Route mail
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High Density mail
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Saturation campaigns
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Heavy Printed Matter migrations
2. Logistics Strategies Just Got Rebalanced
After a year of compressed incentives, the relationship between:
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Cost avoided
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Operational work performed
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Discount earned
is finally being recalibrated.
That restores predictability — and opportunity.
3. Competitive Advantage Returns to Smart Operators
Mailers who can:
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Consolidate efficiently
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Optimize palletization
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Enter at SCF strategically
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Model destination entry scenarios
will gain immediate cost advantages under the July 2026 structure.
SEO Insight: What This Means for Marketing Mail in 2026
If you are searching for:
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USPS SCF discounts 2026
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SCF pallet discounts July 2026
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Marketing Mail dropship discounts
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USPS workshare discount changes
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SCF destination entry update
This is the situation to watch because SCF destination entry discounts are being reinstated as part of the broader USPS July 2026 pricing and structural updates.
And unlike NDC entry, which remains eliminated, SCF entry is regaining its economic footing.
What You Should Be Doing Now
The July 2026 implementation date is approaching. Forward-thinking mailers should:
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Re-run SCF destination entry models
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Evaluate NDC > SCF and SCF > DDU volume migration opportunities
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Reassess consolidation strategies
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Align logistics partnerships for SCF optimization
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Prepare for updated rate design details
The window to prepare is now.
Bottom Line: SCF is Back !!!
More precisely: SCF destination entry discounts are coming back in July 2026, which gives you time to plan, source and implement your new SCF destination entry strategy.
After a year of disruption, from years of uncertainty, the USPS has recalibrated workshare incentives to reflect updated cost avoidances, regulatory requirements, and widespread industry support and utilization of destination-entry postage discounts.
If your operation is built for intelligent dropshipping into SCF, DDU, LPC, and SNDC facilities nationwide, 2026 presents renewed opportunity that will officially kickoff in July.