FedEx VS USPS VS UPS
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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Last updated onUpdated
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Key Takeaways
- Small business owners should evaluate their shipping needs and costs to determine which carrier—FedEx, USPS, or UPS—is best for their business. Often, a mix of carriers offers the most efficient solution.
- UPS is favored for its reliable express shipping and excellent tracking but tends to be more expensive, especially for added services like Saturday delivery.
- USPS is the most economical for small packages and provides services like delivery to PO boxes, while FedEx is ideal for fast, precise deliveries, including international shipping.
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?
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 the progress of your shipments 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 various international shipping options that fit various 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, 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 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.
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:
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.
UPS VS USPS VS FedEx: Cost Comparison
This past year has seen surcharges and rate increases in all three carriers. UPS just announced a surcharge fee starting in September 2024 with a price per pound surcharge for delivery to certain countries.
The USPS will generally be the most economical option.
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.
And a lot is going to depend on the area you ship from/to, the time of year, and what you’re shipping.
In Merchant Maverick’s opinion: 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!
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.
Matt Sherman
Expert Contributor at Merchant Maverick
Matt has been helping small businesses make decisions since 2017. He has written reviews and articles across many different channels but specializes in the point of sale, payroll, and small business insurance categories and has been quoted in articles for Fox Business, Forbes, and other publications. Prior to joining Merchant Maverick, Matt was a journalist and editor for 14 years for a pair of weekly newspapers. He is a graduate of the University of Oregon and currently resides in Gladstone, Oregon.
View Matt Sherman's professional experience on LinkedIn.
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