Which Shipping Carrier is Best for E-Commerce: FedEx vs UPS vs USPS?
Choosing the best shipping carrier is not a one-size-fits-all solution. Each major shipping carrier has pros and cons. Finding the right one for your e-commerce business can depend on the size of the packages you’re shipping and where they’re heading.
Shipping costs can have a major impact on your business’ profitability, as the cost of shipping and carrier surcharges can take up a large percentage of revenue on a sale. Choosing the right shipping service can give your e-commerce business a leg up on the competition by helping to protect your profit margins while also ensuring speedy delivery. Carriers that deliver on time without issue can help your business earn the trust of customers.
In this article, readers will learn that no shipping carrier is universally “best” but that each of the major carriers offers advantages and disadvantages for e-commerce businesses. We’ll discuss the differences between FedEx vs UPS vs USPS and help you decide which carrier would be the best choice for your e-commerce shipments.
FedEx vs UPS vs USPS: Quick Comparison
There are both distinct and minor differences between FedEx vs UPS vs USPS in terms of speed, delivery options, tracking methods, ground transit times, and additional fees. Check out the table below for a quick comparison of the specifics of e-commerce shipping for FedEx vs UPS vs USPS.
| Category | FedEx | UPS | USPS |
|---|---|---|---|
| Best For | Urgent and time-sensitive deliveries | Heavier packages (5 or more pounds) | Lighter packages (2 pounds or less) |
| Cheapest | Large boxes | Medium boxes | Small boxes |
| Fastest | Time-sensitive and overnight shipments | Regional ground delivery | Lightweight packages |
| Heavy Packages | Max weight up to 150 pounds | Max weight up to 150 pounds | Max weight up to 70 pounds |
| Small Packages | Surcharges make small packages expensive | Steep residential delivery fees for small packages | Cheapest option for items under 5 pounds |
| International | Fast urgent shipments, but high base rates | Reliability for heavy, bulky global shipments | Cheapest option for lightweight items, but slower transit |
| Residential | Best for time sensitivity, but comes with surcharges | Reliable transit times and dependable tracking and handling | Zero residential delivery or fuel surcharges, but 70-pound weight limit |
Shipping Costs Compared
Shipping costs between FedEx, UPS, and USPS vary depending on the weight of your package, where it’s being shipped to, surcharges, discounts, and package dimensions. Each of these aspects, as well as others, will impact the final cost of your shipment. Let’s take a closer look at the general pricing of each major shipping company based on these important factors:
- Dimensional weight: All three major shipping brands follow the same formula for calculating the price for dimensional weight: (Length x Width x Height). The answer to this formula is then divided by a divisor. The divisor is 166 for USPS and 139 for FedEx and UPS. Both FedEx and UPS impose surcharges for packages that surpass certain size thresholds.
- Shipping zones: With FedEx and UPS, you may see additional surcharges for delivery to certain destination ZIP codes.
- Residential surcharges: USPS includes no surcharge for residential delivery. FedEx and UPS both include residential surcharges.
- Fuel surcharges: FedEx and UPS apply fluctuating fuel surcharges on top of base rates. USPS does not charge a surcharge but rather includes fuel charges in its base rate.
- Negotiated discounts: USPS’s baseline commercial rates can save you up to 40% off retail when using online shipping platforms. For FedEx and UPS, you can earn additional savings by negotiating directly with these carriers if you’re a business shipping more than $10,000 a year.
- Package dimensions: Additional fees for packages that exceed dimension limits will be imposed by UPS and FedEx. USPS has additional fees for non-rectangular packages.
FedEx Shipping: Pros, Cons & Best Use Cases
FedEx is known for high packing and handling standards and a large network of locations. Their three main shipping methods are FedEx Ground, FedEx Home Delivery, and FedEx Ground Economy, all of which come with fast delivery and reliable tracking.
The fast speed of FedEx is one of the main pros of the company. They offer plenty of overnight delivery options if you need to get a package somewhere first thing in the morning. Reliable, real-time tracking is another advantage of FedEx. Customers can easily track orders through an automated Delivery Manager that can be used to schedule deliveries and keep track of entire orders.
The disadvantage of using FedEx compared to other carriers is the higher rate you can expect to pay. FedEx includes extra fees for residential delivery and fuel, driving up the cost of a shipment. You also need your package to stay within FedEx’s strict size and weight limits.
Using FedEx works best for overnight delivery, as well as heavy or large commercial cargo shipments. Bulk international shipping is also more affordable with FedEx as opposed to other major shipping carriers.
UPS Shipping: Advantages, Pricing & Ideal Shipments
You can rely on UPS’s Same Day and Next Day delivery services when it comes to setting your arrival times and getting packages to their destinations at specific dates and times.
UPS’s biggest strength is its reliable UPS Ground network, trusted for efficient ground shipping. UPS Ground shipping makes it easy to choose specific arrival times and get your packages there without delay. You can take advantage of discounted rates with large shipments. UPS offers a superb order tracking system and label printing facilities for e-commerce businesses.
The disadvantages of using UPS are the surcharges the carrier enforces for residential deliveries and fuel prices. You can expect to pay more than other carriers (for instance, USPS) because of these surcharges. This is especially true for lightweight packages, which tend to be more expensive when shipping with UPS.
The best use cases for UPS are for shipping large merchandise, especially packages over 30 pounds. UPS Ground transport is the best option for ground transport of heavy packages. UPS’s Next Day Delivery is also an attractive option for those who need a package delivered overnight or packages delivered during a certain delivery window.
USPS Shipping: When It Is the Best Choice
The United States Postal Service (USPS) remains the cheapest option for shipping small packages. USPS offers more ways to save money than other services and is the only carrier to deliver directly to PO boxes and mailboxes, rather than the doorstep.
The biggest advantage of using USPS is its lower cost. With USPS, you get the cheapest shipping rates for small packages (items under 1 pound). There are also no residential surcharges, and packages can be picked up for free from offices.
One of the biggest downfalls of using USPS is the enforcement of a strict weight limit. Packages cannot exceed 70 pounds, making USPS an unappealing option for shipping heavy packages.
If you have lightweight packages to ship or just need to send mail to a residential address, USPS is typically the best option for you. You won’t have to worry about extra fees with USPS.
Delivery Speed Comparison
Learn more about the differences in delivery speed offered by FedEx, UPS, and USPS.
- Ground: FedEx Ground and UPS Ground are both typically 1 to 5 business days for ground delivery, making them appealing options for ground shipping that needs to get there quickly. USPS typically takes a little longer, typically 2 to 5 days. Delays can be more frequent with USPS during busy seasons, such as the holidays.
- Two-Night: If you need an item shipped in under two business days, FedEx 2Day and UPS 2nd Day Air are your best options. USPS offers Priority Mail but does not have guaranteed transit times. Delivery is typically between 1 and 3 business days.
- Overnight: Both FedEx Overnight and UPS Next Day Air Early have options for early morning delivery, while USPS does not. USPS Priority Mail Express only offers a standard mid-day delivery, arriving between Noon and 3 p.m.
- International: FedEx and UPS are your fastest options for international shipping as FedEx International delivers in 1 to 3 days worldwide, while UPS Worldwide Express also delivers in 1 to 3 business days.
- Weekend Delivery: Saturday delivery is standard across all three platforms, but Sunday is only an active option for ground and home delivery options in most major markets from FedEx. USPS provides Sunday delivery for Priority Mail Express deliveries, as well as during high-volume seasons like December. UPS rarely provides Sunday delivery unless contractually arranged.
Tracking and Delivery Experience
It’s never been easier to track your packages in real time, as well as get in touch with carriers for delivery assistance. Here is an explanation of the different tracking and delivery experience enhancements offered by FedEx, UPS, and USPS:
- Mobile Apps: FedEx Mobile provides real-time map tracking and photo proof of delivery. The UPS App offers tracking integration for real-time tracking from pickup to drop-off. USPS has an Informed Delivery app for digital mail previews and direct barcode scanning.
- Customer Notifications: Through FedEx Delivery Manager, customers can be sent delivery alerts through text, email, or app notifications. UPS My Choice gives customers confirmed delivery time windows and driver instructions. USPS Informed Delivery includes the option for morning email and push notifications that allow you to see image previews of incoming mail.
- Delivery Management: FedEx Delivery Manager can allow you to reroute packages, provide specific delivery instructions, and see visual proof of delivery. UPS My Choice allows you to follow your delivery with live mapping and has an option to designate safe drop locations or reroute packages. USPS Informed Delivery features an informed app experience that includes status sharing with other users.
- Proof of Delivery: FedEx offers picture proof with a photo of delivery that can be found via the FedEx Tracking dashboard and FedEx Delivery platform. UPS delivers photo confirmations that are downloadable via UPS Quantum View. USPS can send you daily mail previews through USPS Informed Delivery but does not offer package drop-off photos.
- Pickup Options: FedEx Shipping Tools can be used for automated and flexible scheduling, while UPS offers UPS Pickup Scheduling for on-call and smart pickup. USPS offers carrier pickup integration for free package pickup during regular mail delivery, as well as streamlined online scheduling through the use of USPS Pickup Tools.
Which Carrier is Best for E-Commerce?
FedEx vs UPS vs USPS remains a pressing question for e-commerce businesses. How do businesses know which carrier is best for e-commerce? Each of the three major carriers offer different benefits for e-commerce customers. How would FedEx vs UPS vs USPS work for your e-commerce business?
- Lightweight Orders: For lightweight packages, USPS is almost always the best choice. Packages under 70 pounds are significantly cheaper with USPS as opposed to UPS and FedEx. USPS does not include residential or fuel surcharges either.
- Oversized Packages: USPS might not be the best choice for oversized packages, as they have a 70-pound weight limit. UPS and FedEx have a 150-pound max weight, and both have a 108-inch max length. FedEx offers the best rates for residential ground shipping and express deliveries, while UPS has the best services for large commercial shipments.
- Subscription Boxes: If your subscription box is lightweight (under 2 pounds), USPS would be the most affordable choice for you. For heavy, bulky boxes, UPS provides the most reliable ground shipping. The commercial shipping expertise and extensive network of FedEx make it the best choice for heavy-duty subscription boxes.
- B2B: If you are sending lightweight packages between businesses, USPS is your best option. If you need to ship something quickly, overnight, or perhaps internationally, FedEx’s overnight air network makes it the best option for you. If you have heavy shipments to send and want to ensure the shipment gets where it needs to go on time, UPS is a reliable choice for you. UPS’s ground delivery is also the best option for heavy B2B shipments.
- DTC: Shipping directly to customers comes with a different set of considerations than sending orders between businesses. USPS can make sense when most of the orders are small and lightweight, especially since residential and fuel surcharges aren’t added to the shipping cost. Once package weight starts to increase, UPS and FedEx become worth comparing. UPS is a common choice for heavier ground shipments, while FedEx may be a better fit when getting the order there quickly is more important.
- Fragile Products: UPS has a good reputation when it comes to sending fragile products. This is due to the efficient tracking options UPS offers, as well as its expertise with heavy packages.
- International Shipping: All three of FedEx, UPS, and USPS offer international shipping options, so the best option for your e-commerce business would depend on the specific package you’re sending.
Why Many E-Commerce Brands Use Multiple Carriers
For many e-commerce businesses, the goal with shipment delivery is to make sure shipments are delivered in an efficient and timely fashion, ensuring the buyer gets everything they need on time. Since not all shipments are handled exactly the same, it doesn’t benefit an e-commerce business to be loyal to just one shipping carrier. The smart thing to do would be to use multiple shipping carriers and choose the one that works best for each individual shipment. Each carrier has its own specialties that can be leveraged together by your e-commerce business to meet your particular needs. Here’s why many e-commerce brands use multiple carriers.
- Shipping Software: The platforms used for label printing and delivery automation are all similar between FedEx, UPS, and USPS, but you should choose the one that works best with your particular package.
- Rate Shopping: Compare rates between each of the three carriers to find the best rate for your particular shipment. The best rate will depend on package weight and where it’s being shipped.
- Regional Optimization: Certain carriers are better for local deliveries, especially at the last minute, while others are better for longer deliveries across multiple states or even international delivery.
- Fulfillment Providers: You may have more confidence in certain carriers to handle fulfillment than others. Compare the fulfillment services between carriers to find the one that’s best for your shipment.
How Fulfillment Providers Reduce Shipping Costs
Compare the needs of your e-commerce business to the features and limitations listed above to figure out which shipping service you should use.
There’s no easy answer to the question of the “best” shipping service, which is why the right e-commerce fulfillment company secures highly discounted rates based on their relationships with certain carriers and the high volumes of merchandise they ship. Find a service that profiles your SKUs to customize your box sizes and get you the best rates using the advantages of these major shipping services.
How eWorld Fulfillment Can Help You Save
If you’re uncertain about how to handle shipping fulfillment for your e-commerce business, turn to eWorld Fulfillment for help. We provide fast, accurate, and reliable shipping services from our Florida-based warehouse. We offer a safe place for you to store your company’s inventory. When orders are placed, we can then pack and ship those orders for you on the same day. You can count on us for flexible fulfillment solutions that will help your business manage orders and meet customer expectations. eWorld can be trusted for all your fulfillment solutions, including real-time inventory tracking, custom packaging and kitting, and same-day shipping. We integrate with online shopping platforms like Amazon, Walmart, and Shopify. We can help your e-commerce business get its products packed and shipped easily while saving you money on shipping costs. Contact us today to get a quote.
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