Japan: Postal Rate Revision: Impact on Direct Mailing and Countermeasures

Direct Mail (DM) Shipping Costs in Japan

Japan: Postal Rate Revision: Impact on Direct Mailing and Countermeasures

On October 1, 2024, Japan Post revised its postal rates for the first time in approximately 30 years. With this revision, the postage for standard mail (up to 25g) increased from 84 yen to 110 yen, and the postage for regular postcards rose from 63 yen to 85 yen. This rate adjustment was implemented as a response to the challenging business environment surrounding the postal industry, including a decline in mail volume due to digitalization and rising labor and fuel costs.

This price increase has had a significant impact, particularly on businesses that rely on direct mail (DM). DM is widely used as a direct marketing method to reach customers, but the rise in postal rates has led to increased shipping costs. As a result, companies are now compelled to reassess their marketing strategies and explore new cost-saving measures.

Details of the Postal Rate Revision

On October 1, 2024, Japan Post implemented its first postal rate revision in approximately 30 years. This change affects various types of mail, significantly impacting businesses and individuals who rely on postal services.

Mail Type Previous Rate New Rate (as of Oct.1, 2024) Increase Rate
Regular Postcard 63 yen 85 yen + 35%
Standard Mail(up to 25g) 84 yen 110 yen + 31%
Standard Mail(up to 50g) 94 yen 110 yen + 17%

This price revision was implemented to address the declining volume of mail due to digitalization and rising operational costs, including labor and fuel expenses.

Impact of the Rate Increase

  1. Higher mailing costs for businesses – Companies that rely on direct mail (DM), invoices, and promotional mailings will face increased expenses.
  2. Changes in marketing strategies – Businesses may reconsider their reliance on DM and shift toward digital marketing channels.
  3. Greater importance of cost-saving measures – Companies need to optimize bulk mailing discounts and explore alternative postal services like Special Contract Yu-Mail.

This rate increase is expected to reshape the landscape of postal communication, pushing businesses to adopt more strategic and cost-efficient mailing solutions.

Postal Rate Discount Programs in Japan

Japan Post offers several discount programs for businesses and organizations that send large volumes of mail. These discounts help reduce mailing costs by optimizing processing efficiency. Below are the key postal rate discount programs available in Japan:

Advertising Mail Discount

Overview:The Advertising Mail Discount is a postal discount program applied to direct mail (DM), pamphlets, and other promotional mailings. It is available for bulk mailings with identical content, and the discount rate increases as the number of mail pieces rises.

Eligibility:・The content must be advertising or promotional material (Invoices and notifications are NOT eligible).
    ・All mailpieces must have identical content.

Discount Rate:A discount of up to 37% is available depending on the number of mailpieces sent.
For example: ・100,000 pieces → 27% discount
      ・1,000,000 pieces → 37% discount
       (Applicable to both standard and non-standard mail.)

Key Points:・Designed for businesses that send DM regularly, as bulk mailing is required.
      ・A “Mailing Statement” must be submitted in accordance with Japan Post’s regulations.

Discount Structure
Per-batch discount based on the number of mail pieces per mailing.

Number of Mail pieces Standard Mail / Non-standard Mail Postcard
2,000 ~ 12% 8%
3,000 ~ 15% 11%
5,000 ~ 18% 14%
7,500 ~ 19% 15%
10,000 ~ 21% 17%
15,000 ~ 22% 18%
20,000 ~ 23% 19%
30,000 ~ 24% 20%
50,000~ 25% 21%
75,000 ~ 26% 22%
100,000 ~ 27% 23%
200,000 ~ 29% 25%
300,000 ~ 31% 27%
500,000 ~ 33% 29%
800,000 ~ 35% 31%
1,000,000 ~ 37% 33%
Source: Japan Post, “Advertising Mail”:
“Monthly Discount”, which applies a discount rate based on the total number of mailpieces sent within one month, is also available.  

Presorted Mail Discount

Overview: The Presorted Mail Discount is a postal discount program that applies when the sender pre-sorts mail by postal code before submission. Since this reduces sorting work for Japan Post, a discount is offered in return.

Eligibility: ・Mail must be sorted in numerical order by postal code.
     ・Designated sorting labels or tags must be used, and mail must be submitted according to Japan Post’s regulations.

Discount Rate: ・Varies depending on the sorting method and number of mailpieces (typically 1–6%)
       ・Additional discounts may apply when combined with:
          ・Deferred Delivery Discount
          ・Barcode Mail Discount

Key Points: Requires significant sorting effort, so it is most effective for businesses that handle large-scale mailings and have automated mailing systems in place.

Barcode Mail Discount

Overview: The Barcode Mail Discount is a postal discount program that applies when a mailpiece includes a barcode specified by Japan Post. The barcode allows for smoother automated processing, reducing operational costs and qualifying the sender for a discount.

Eligibility:・The mailpiece must include a barcode based on the postal code.
     ・It is recommended to use Japan Post’s barcode generation tools.

Discount Rate: ・3% discount

Key Points:・Accurate barcode printing is essential; the use of dedicated printers and tools is recommended.
      ・Can be combined with the Presorted Mail Discount and Advertising Mail Discount for additional savings.

Intra-Post Office Area Discount

Overview: The Intra-Post Office Area Discount is a postal discount program applied to mail delivered within the same postal office’s delivery area. Since the delivery distance is short, the postage cost is lower than standard rates.

Eligibility:・The recipient’s address must be within the delivery area of the sending post office.
     ・Mainly used for local marketing and notifications.

Key Points:・Ideal for area-specific campaigns and local event announcements.
      ・It is necessary to confirm the applicable delivery area in advance.

Deferred Delivery Discount

Overview: The Deferred Delivery Discount is a postal discount program that applies when the delivery date of mail is delayed beyond the standard timeframe. By targeting non-urgent mail, Japan Post improves delivery efficiency and reduces costs, passing on the savings to senders.

Eligibility:・Mailpieces that do not require urgent delivery.
     ・Recipients must agree to a delayed delivery schedule.

Discount Rate: The discount varies based on the number of days the delivery is deferred.

Key Points: ・Suitable for direct mail (DM) and announcements where delivery timing is flexible.
      ・Should be used only when a delivery delay does not impact customer satisfaction.

Maximizing Cost Savings with Combined Discounts

By strategically combining multiple discount programs, businesses can significantly reduce postal costs and achieve cost-efficient mailing. For example, using both the Advertising Mail Discount and Presorted Mail Discount can help minimize DM expenses.

Impact of the Postal Rate Revision

However, these discount programs already existed before the recent postal rate revision, and the base postal rates have increased. As a result, even with discounts applied, mailing costs are still higher than before due to the overall rate increase.

Utilizing “Special Contract Yu-Mail” for Cost-Effective Bulk Mailing

Special Contract Yu-Mail is a bulk mailing service provided by Japan Post exclusively for businesses. It is particularly suitable for sending advertisements, catalogs, and product samples, offering a more cost-effective solution compared to standard Yu-Mail (ゆうメール). By entering into a special contract, businesses can receive discounted rates based on the mailing volume and type of items sent, leading to significant cost savings. Below, we provide a detailed explanation of the features and conditions for using Special Contract Yu-Mail.  

Features of Special Contract Yu-Mail

Significant Cost Savings:By signing a special contract, businesses can benefit from lower postage rates than standard Yu-Mail. The discount rates vary depending on the mailing volume and contract terms, making it particularly effective for companies that send thousands of mailpieces per batch.

Flexible Weight-Based Pricing System: While Yu-Mail uses a weight-based pricing system, Special Contract Yu-Mail allows for more flexible pricing based on contract agreements, offering further cost reductions.

Eligible Mail Items: Special Contract Yu-Mail can be used to send printed materials and product samples, including:

  • Catalogs, flyers, and brochures
  • Books and booklets
  • Lightweight product samples
  • Other promotional materials

Combination with Additional Discounts: In some cases, Special Contract Yu-Mail can be combined with other postal discount programs, such as: Barcode Mail Discount and Presorted Mail Discount. This allows businesses to further maximize cost savings.

Requirements for Using Special Contract Yu-Mail

To utilize Special Contract Yu-Mail, businesses must meet specific requirements.

Pre-Contract Agreement Required: A contract with Japan Post is necessary before using Special Contract Yu-Mail. During the contracting process, businesses must declare details such as:

  • Estimated mailing volume
  • Types of mail items
  • Frequency of mailings

Bulk Mailing Requirement: In most cases, Special Contract Yu-Mail requires a minimum mailing volume of several thousand pieces per batch. If the mailing volume is low, businesses may need to use standard Yu-Mail instead.

Content Restrictions: Only certain types of mail can be sent using Special Contract Yu-Mail:

  • Printed materials such as catalogs and booklets
  • Product samples (must be lightweight; weight limits depend on the contract)
  • Cannot be used to send “letters” or any form of correspondence (信書)

Packaging and Labeling Requirements: Mailpieces must comply with Japan Post’s packaging and labeling regulations, including:
・Specifying the type of mail content
・Clearly indicating the sender’s name

Outsourcing to a DM Mailing Service Provider

Meeting all these conditions in-house can be challenging for many businesses. However, companies can outsource their mailings to a direct mail (DM) mailing service provider that already has a special contract with Japan Post. By doing so, businesses can benefit from even lower postage rates than the standard Yu-Mail discounts.

When outsourcing, the sender’s name on the mailpiece must be that of the contracted company. However, it is possible to include the name of the business outsourcing the mailing, ensuring brand visibility is maintained.

Using Direct Mail for Marketing in Japan

For businesses that rely on direct mail (DM) for marketing in Japan, outsourcing mailings to a DM mailing service provider with a Japan Post special contract is a cost-effective and efficient solution. This approach allows businesses to reduce mailing costs while ensuring compliance with Japan Post’s regulations.