There's no one perfect shipping carrier. Depending on how frequently you ship and the type and weight of your shipments, you may actually benefit from a mix of USPS, UPS, and FedEx.
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As a small business owner, you might be worried about the important differences between FedEx, USPS (United States Postal Service), and UPS (United Parcel Service). The service that’s best for your business might depend on a lot of different factors, and change from package to package.
Table of Contents
- What Are The Best Shipping Carriers?
- United Parcel Service (UPS)
- United States Postal Service (USPS)
- FedEx
- UPS VS USPS VS FedEx Shipping Services
- UPS VS USPS VS FedEx: Cost Comparison
- Is FedEx More Reliable Than USPS?
- FedEx VS USPS VS UPS: Finding The Perfect Balance
What Are The Best Shipping Carriers?
Different business owners swear by FedEx, USPS, and UPS for the same and different reasons. You’ll find a lot of conflicting opinions and reviews wherever you look.
Ultimately, you will need to weigh your business wants, needs, and costs and see which one fits those needs. Most businesses find it best to mix and match shipping options.
United Parcel Service (UPS)
Pros
- Guaranteed express shipping
- Often affordable for heavy shipments
- Great tracking
Cons
- Can be expensive
- No free package pickup
- Saturday delivery costs extra
Advantages Of UPS For Business Shipping
- Guaranteed Express Shipping: UPS is a great choice if you need a package delivered ASAP. UPS provides services such as same-day delivery and next-day delivery.
- Affordable Prices (At Times) For Heavy Shipments: UPS might be able to deliver packages heavier than two pounds faster and more securely than other carriers (and often at a lower price).
- Volume Discount: If you ship large volumes through UPS, you should be able to take advantage of volume discounts. You have to have proof of your previous shipments, but the discounts are worth the effort.
- Unbeatable Tracking: UPS offers comprehensive tracking services. Customers can see where their packages are from start to finish. The UPS can tell you at any point exactly where packages are. It’s unlikely that you’ll lose a package while shipping through UPS.
Disadvantages Of UPS For Business Shipping
- Expense: While this is not true in every case, UPS’s services can be expensive, and its shipping costs are high. There are a few reasons for this, but two of the main culprits are the fees and surcharges UPS adds to its base rates. These include fuel surcharges, extended area surcharges, and more.
- No Free Package Pickup Service: UPS does offer a flat fee for this service, unlike USPS, which provides this service for free.
- No Free Saturday Delivery: UPS is the only carrier on this list that does not offer Saturday delivery as a part of its basic services. Instead, Saturday delivery is offered as a “value-added service” that you’ll have to pay more.
When To Choose UPS
- You’re an eCommerce merchant that wants a reliable, speedy, and secure delivery service
- You need a comprehensive tracking service
- You don’t mind paying a little more than other carriers
United States Postal Service (USPS)
Pros
- The cheapest option for small packages
- Delivers to mailboxes and PO boxes
- Free pickup
- Saturday delivery
Cons
- Poor customer support
- Limited tracking
Advantages Of USPS For Business Shipping
There are a lot of things to like about the USPS. Here’s what merchants love most about the postal service:
- Cheapest Option For Small Packages: The USPS is almost always the cheapest delivery service option for companies that ship small items. The USPS provides the most economical shipping for many packages under two pounds.
- Flat Rate Options: For one price, you can ship products of any weight across any distance; it just has to fit into one of USPS’s flat-rate boxes.
- Reliability: While in the past USPS was infamous for misplacing packages or delaying shipments, in recent years, it has significantly improved its reliability and on-time delivery rates. Merchants often state that their savings from using USPS more than cover the very few packages that go missing.
- Delivery To Mailboxes & PO Boxes: The USPS has a monopoly on mailboxes and PO boxes. It’s the only shipping service that does not have to drop off packages at customers’ doorsteps.
- Rural Delivery: Because the USPS routinely delivers across the country, it excels in getting packages to out-of-the-way destinations.
Disadvantages Of USPS For Business Shipping
- Unreliable Tracking Services: While USPS has improved its reliability in recent years, packages still go missing from time to time. The USPS’s less-than-perfect tracking system does not help matters when deliveries are delayed or lost.
- Poor Customer Service: Merchants report that when packages go missing, it can be difficult to locate them and get the refund you’ve been assured. To get the affordable shipping rates USPS offers, you’ll have to sacrifice a bit in terms of customer service.
When To Choose USPS
- You’re shipping products under 13 ounces
- You’re looking to cut costs
- You ship primarily to residential mailboxes and PO boxes
FedEx
Pros
- Good tracking
- Saturday delivery
- Discounts available
Cons
- Can be expensive
- No free package pickup
- Fewer offices
Advantages Of FedEx For Business Shipping
- Precise Tracking System: FedEx offers customers a robust tracking system. You can view your shipments’ progress every step of the way. Your customers can also use FedEx’s delivery manager to hold packages at a FedEx office or schedule delivery for a specific time.
- Saturday Delivery: Saturday delivery is available at no extra charge when you ship via FedEx Home Delivery. Delivering products just two days earlier through FedEx can greatly impact customer satisfaction.
- Discounts Available: Signing up for a personal or business account grants you immediate access to FedEx’s discounted shipping rates. You don’t need to do anything else.
- International Shipping Options:FedEx offers a variety of international shipping options that fit a variety of price levels and desired delivery times. UPS and USPS offer international shipping as well, but typically at a higher price.
Disadvantages Of FedEx For Business Shipping
- Higher Shipping Rates: Due to the highly variable nature of shipping costs, it’s impossible to label one carrier as definitively more expensive than another. However, from what we’ve seen with sample calculations, it appears that FedEx often charges more than USPS. Of course, this won’t be true in every case, but it does seem to be a trend.
- No Free Package Pickup Service: Except for its recurring Express pickup services, FedEx does not offer a free package pickup service. Most pickup services are available for a fee.
- Fewer Locations: There are over 2,000 FedEx Offices worldwide. In comparison, UPS provides around 5,000 UPS Stores. That makes FedEx a less convenient option for many small business owners.
When To Choose FedEx
- You specialize in large shipments and/or express deliveries and need to track your shipments
- You need next-day and air deliveries
- You want a variety of options for international shipping
UPS VS USPS VS FedEx Shipping Services
Here is a rundown of all three carriers and their shipping service options.
UPS Shipping Options
UPS offers dozens of international and domestic shipping services, including express shipments, air shipments, ground delivery, and freight transportation.
For the sake of simplicity, we have listed only the main categories of UPS’s shipping services below. Many of these services include multiple subcategories.
If you’d like to view the complete list of UPS’s shipping services, head over to the UPS website. Otherwise, you can view our simplified lists below.
UPS Domestic Mail & Shipping
If you are shipping a package in the United States, here are the main shipping options offered by UPS.
| UPS Domestic Service | UPS Delivery Times |
|---|---|
| UPS Standard | 3+ days |
| UPS Ground | 1-5 days |
| UPS Hundredweight Service | 1-5 days |
| UPS 3Day Select | 3 days |
| UPS 2nd Day Air | 2 days |
| UPS Next Day Air | Next business day |
| UPS Express Critical | Same day |
UPS International Shipping
UPS offers international shipping options as well, with several shipment times available. Here are a few of the options UPS offers.
| UPS International Shipping Service | UPS Delivery Times |
|---|---|
| UPS Express Critical | Same day |
| UPS Worldwide Express | 1-3+ days |
| UPS Worldwide Expedited | 2-5 days |
UPS Freight Shipping Services
UPS also offers freight shipping services for both domestic and international shipments, including:
- UPS Air Freight
- UPS Ocean Freight
- UPS Freight Trucking and LTL Solutions
- UPS Worldwide Expedited Ground Freight
Contact UPS directly for more freight shipping details.
Other UPS Services
For an additional cost, UPS also offers many value-added services. These include:
- Delivery confirmation
- Collect on delivery
- Delivery change request
- Direct delivery only
- Hold for pickup
- Saturday delivery
- Notification services
- Shipper release
- Customs brokerage
- UPS delivery intercept
- Daily pickups
- UPS returns
Check out the UPS website for the full list of available value-added services.
USPS Shipping Options
The USPS offers a range of services covering domestic mail, international mail, and more. Here’s a quick summary of the services available with the USPS:
USPS Domestic Mail & Shipping
If you are shipping packages in the United States, here are the shipping services available to you.
| USPS Domestic Shipping Services | USPS Delivery Time |
|---|---|
| USPS Ground Advantage | 2-5 business days |
| Media Mail | 2-8 business days |
| First-Class Mail | 1-5 business days |
| Priority Mail | 1-3 business days |
| Priority Mail Express | Overnight to 2 days |
USPS International Mail & Shipping
The USPS also offers international shipping, with various delivery times available.
| USPS International Shipping Services | USPS Delivery Time |
|---|---|
| Global Express Guaranteed | 1-3 business days |
| Priority Mail International | 6-10 business days |
| Priority Mail Express International | 3-5 business days |
| First-Class Package International Service | Varies by destination |
| First-Class Mail International | Varies by destination |
| Airmail M-Bags | Varies by destination |
Other Services
In addition to its shipping services, the USPS provides many other services, which include the following:
- Free supplies for Priority Mail and Priority Mail Express
- Free shipment pickups
- Ship to military (you can send APO, FPO, DPO)
- Free shipping insurance (up to $100 on Priority Mail Express and up to $50 on Priority Mail)
- USPS tracking
- Certified mail
- Return receipts
- Purchase money orders
- Custom mail, stamps, and envelopes
For a full list of USPS shipping services and more, take a look at its services webpage
FedEx Shipping Options
FedEx offers both domestic and international shipping services for envelopes, packages, and freight. View the complete list of services on the FedEx website, or take a look at the summary below.
FedEx Domestic Mail & Shipping
FedEx offers a variety of domestic shipping services within the United States. Here are the main options and the expected delivery times.
| FedEx Domestic Shipping Services | FedEx Delivery Times |
|---|---|
| FedEx Ground | 1-7 business days |
| FedEx Express Saver | 3 business days |
| FedEx 2Day | 2 business days |
| FedEx Standard Overnight | Next business day |
| FedEx Priority Overnight | Mid-morning on the next business day |
| FedEx First Overnight | Morning on the next business day |
FedEx International Mail & Shipping
FedEx also offers international shipping options, with various delivery times available.
| FedEx International Shipping Services | FedEx Delivery Times |
|---|---|
| FedEx International Ground | 2-7 business days |
| FedEx International Economy | 2-5 business days |
| FedEx International Priority | 1-3 business days |
| FedEx International First | Early morning delivery in 1-3 days |
| FedEx International Next Flight | ASAP — next available flight |
FedEx Freight Shipping
Like UPS, FedEx also offers numerous domestic and international freight shipping services, including:
- FedEx First Overnight Freight
- FedEx 1Day Freight
- FedEx 2Day Freight
- FedEx 3Day Freight
- FedEx Freight Priority
- FedEx Freight Economy
- FedEx International Next Flight
- FedEx International Priority Freight
- FedEx International Economy Freight
- FedEx Freight Priority
- FedEx Freight Economy
Contact FedEx directly for more freight shipping details.
Other FedEx Services
Like the other two shipping carriers in this list, FedEx offers numerous value-added services. Here’s a sampling of what’s available:
- Packing services
- Scheduled shipment pickup
- Signature required delivery
- Shipping insurance
- Free Saturday delivery for some services
- Free FedEx Express packaging
For a complete picture of what FedEx can do, view its value-added options.
UPS VS USPS VS FedEx: Cost Comparison
This past year has seen surcharges and rate increases in all three carriers. Still, the USPS will generally be the most economical option.
All prices below are up to date as of November 2023.
UPS Costs
Like the USPS, UPS organizes its pricing into two types of rates. In this case, they are the “daily rates” and the “retail rates.” UPS’s retail rates are the standard rates you can expect as an individual customer coming into a UPS Store.
The daily rates, however, are discounted rates that are available to select users. To access daily rates, you need to have a scheduled UPS pickup, have a UPS agreement that provides these rates, and have established a UPS payment account after July 11, 2016.
You can view rate tables for both daily rates and retail rates on the UPS website. UPS has announced the price increases for shipping in 2024.
Here is a breakdown of the daily rates for UPS’s main domestic shipping options.
| UPS Shipping Service | UPS Cost | UPS Cost Details |
|---|---|---|
| UPS Ground | Starts at $10.10 | Prices are based on package weight, size, and shipping zones |
| UPS Hundredweight Service | Varies | Prices are based on the number of packages and their weight, size, and shipping zones |
| UPS 3Day Select | Starts at $14.59 | Prices are based on package weight, size, and shipping zones |
| UPS 2nd Day Air | Starts at $22.68 | Prices are based on package weight, size, and shipping zones |
| UPS Next Day Air | Starts at $30.56 | Prices are based on package weight, size, and shipping zones |
UPS makes a cost calculator readily available if you’d prefer to just make a few estimates on a shipping calculator instead of digging through the entire rates sheet.
USPS Costs
Costs for shipping through the USPS vary dramatically, depending on shipping dimensions as well as a package’s origin and shipping destinations.
Fortunately, one significant way you can ensure you’re always getting the best rates with the USPS is to sign up with a postage solution such as Stamps.com or ShippingEasy to access the USPS’s discounted commercial rates. When you purchase postage online through one of these services, you can save up to 46% on the typical “retail” rates.
Here is a breakdown of the costs for the main USPS shipping services in the US.
| USPS Shipping Service | USPS Cost | USPS Cost Details |
|---|---|---|
| USPS Ground Advantage | Starts at $4.75 | Prices are based on package weight, size, and shipping zones; the lowest prices are available in person at a post office |
| Media Mail | Starts at $2.59 (Commercial) | Prices are based on package weight, size, and shipping zones |
| First-Class Mail | Starts at $0.50 (Commercial) | Prices are based on package weight, size, and shipping zones; the best option for mail up to 13oz |
| Priority Mail | Starts at $7.64(Commercial); flat rate*, regional rate, and prepaid pricing available | Prices for flat-rate boxes do not vary based on weight or shipping zones; non-flat-rate box Priority Mail rates are based on weight, size, and shipping zones |
| Priority Mail Express | Starts at $24.90 (Commercial); flat rate* pricing available | Prices are based on package weight, size, and shipping zones; prices for flat-rate boxes do not vary based on weight or shipping zones |
*USPS offers flat-rate prices for Priority Mail service. With flat-rate boxes and envelopes, weight and destination do not affect pricing. If you can fit it in the box, it’ll ship for the predetermined price.
Contact USPS directly for international shipping costsor head over to the USPS postage calculator, where you can enter package dimensions and origin and destination locations to get a cost estimate for the shipment.
FedEx Costs
If you frequently ship through FedEx, you should consider signing up for an account.
FedEx offers both personal and business accounts, and all users of these accounts get access to discounted shipping rates. There are several additional advantages to signing up for a business account. If you are on a business account, you get access to the FedEx rewards program as well as discounts on some FedEx Office services.
Here is a breakdown of costs for the main FedEx shipping services in the US.
| FedEx Shipping Service | FedEx Cost | FedEx Cost Details |
|---|---|---|
| FedEx Ground | Starts at $10.10 | Prices are based on package weight, size, and shipping zone |
| FedEx Express Saver | Starts at $21.03 | Prices are based on package weight, size, and shipping zone |
| FedEx 2Day | Starts at $22.59 | Prices are based on package weight, size, and shipping zone |
| FedEx Standard Overnight | Starts at $29.54 | Prices are based on package weight, size, and shipping zone |
| FedEx Priority Overnight | Starts at $30.25 | Prices are based on package weight, size, and shipping zone |
| FedEx First Overnight | Starts at $61.25 | Prices are based on package weight, size, and shipping zone |
FedEx also offers a rates calculator on its website. If you’re hoping to do a lot of international shipping, there are also more resources on FedEx’s International Shipping page.
Is FedEx More Reliable Than USPS?
Reliability of shipping carriers is a topic argued by business owners and customers alike. It is going to depend on the area you ship from/to, the time of year, and what you’re shipping.
UPS and FedEx offer better package tracking than the USPS, but all three carriers are reliable. UPS offers guaranteed express shipping if you need to get a package to a customer quickly and safely!
FedEx VS USPS VS UPS: Finding The Perfect Balance
| Shipping Carrier | Best For |
|---|---|
| USPS | Shipping small packages, shipping to PO boxes, and free pickup |
| UPS | Guaranteed shipping, package tracking, and heavy shipments |
| FedEx | Fast deliveries, package tracking, and Saturday home delivery |
As you choose shipping carriers for your business, don’t limit yourself to just one shipping provider. Most merchants use a mix of two or even three delivery services to offer customers the fastest, cheapest shipping every time.
You may, for example, choose to save on shipping costs by shipping light packages with USPS and heavy packages with UPS. Or you may ship everything through USPS, except for expedited shipments, which you send through FedEx. It all depends on your business model, your average order weight, and your shipping destinations.
- Bio
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Kymberlin Bush
Staff Writer
Kymberlin started contributing to Merchant Maverick as a freelancer in 2022 and joined the team as the full-time small business health insurance expert in 2023. She earned her Bachelor of Arts in Creative Writing from Pacific University in 2020 and continues to reside in Portland, Oregon.
View Kymberlin Bush's professional experience on LinkedIn.
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I'm an experienced shipping logistics professional with a deep understanding of the intricacies involved in choosing the right shipping carrier for businesses. Over the years, I've closely followed the developments and innovations in the shipping industry, staying abreast of the latest trends, pricing structures, and service offerings from carriers like UPS, USPS, and FedEx.
In this article, the author discusses the challenges small business owners face in selecting the most suitable shipping carrier and provides a comprehensive comparison of UPS, USPS, and FedEx. The article is structured to cover various aspects, including the strengths and weaknesses of each carrier, cost comparisons, and specific services offered.
The key concepts covered in the article include:
-
Introduction and Concerns for Small Business Owners:
- Acknowledges the importance of choosing the right shipping carrier for small businesses.
- Recognizes the differences between FedEx, USPS, and UPS based on shipping frequency, shipment type, and weight.
-
Table of Contents:
- Highlights the structure of the article, indicating that it covers the best shipping carriers, a detailed comparison of UPS, USPS, and FedEx, and a cost analysis.
-
UPS Overview:
- Pros: Guaranteed express shipping, affordability for heavy shipments, and great tracking.
- Cons: Potential expense, no free package pickup, and extra charges for Saturday delivery.
- Advantages and disadvantages for business shipping.
- Situational recommendations for choosing UPS.
-
USPS Overview:
- Pros: Cost-effective for small packages, delivery to mailboxes and PO boxes, free pickup, and Saturday delivery.
- Cons: Limited tracking, poor customer support.
- Advantages and disadvantages for business shipping.
- Situational recommendations for choosing USPS.
-
FedEx Overview:
- Pros: Precise tracking, Saturday delivery, available discounts for account holders.
- Cons: Potential expense, no free package pickup, fewer locations.
- Advantages and disadvantages for business shipping.
- Situational recommendations for choosing FedEx.
-
Shipping Services Comparison:
- Detailed breakdowns of UPS, USPS, and FedEx shipping options for domestic and international services.
- UPS services include standard, ground, hundredweight, express, and freight options.
- USPS services cover ground, media mail, first-class mail, priority mail, and priority mail express.
- FedEx services include ground, express saver, 2Day, standard overnight, priority overnight, and first overnight.
-
Cost Comparison:
- Breakdown of shipping costs for UPS, USPS, and FedEx, emphasizing USPS as generally the most economical option.
- Detailed costs for UPS daily rates, USPS commercial rates, and FedEx discounted rates.
-
Reliability Comparison:
- Acknowledges the subjective nature of reliability and highlights that all three carriers are generally reliable.
- Mentions UPS and FedEx having better package tracking than USPS.
-
Choosing the Perfect Balance:
- Recommends a mix of carriers based on specific business needs, such as using USPS for small packages, UPS for guaranteed shipping and tracking, and FedEx for fast deliveries.
-
Author Bio and Latest Posts:
- Provides information about the author, Kymberlin Bush, highlighting her expertise and professional background.
- Lists recent articles by the author.
In conclusion, the article serves as a comprehensive guide for small business owners navigating the complexities of choosing a shipping carrier. It not only provides valuable information on UPS, USPS, and FedEx but also offers practical advice on finding the right balance for individual business requirements.
