What Is Cheaper: UPS or USPS?

May 25, 2023
Written by
Anthony Robinson
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What Is Cheaper: UPS or USPS?

When it comes to shipping, choosing the right carrier can significantly impact your budget. With UPS and USPS being two of the most popular shipping options in the United States, customers often wonder which is cheaper. The answer to this question isn't straightforward, as various factors come into play. In this comprehensive guide, we will compare the rates and costs of shipping with UPS and USPS to help you choose the most affordable option for your needs.

Comparing UPS and USPS Shipping Costs

The cost of shipping primarily depends on the carrier, package size, weight, and distance. Both UPS and USPS offer multiple shipping options with varying delivery speeds and features. Generally, UPS is favored by businesses and for large-scale shipments, while USPS is more popular among individuals and small businesses.

Rate Structures

UPS uses a zone-based pricing system, where the shipping cost depends on the distance between the origin and destination zones. In contrast, USPS employs flat-rate boxes, regional rate boxes, and weight-based rates.

  • UPS: Zone-based pricing can benefit larger or heavier packages, especially over longer distances.
  • USPS: Flat-rate options are cost-effective for small and lightweight packages, with First Class Mail starting at $0.55 for letters and postcards.

According to the USPS Oversight Document, USPS First Class Mail remains the most economical choice for parcels under 4 ounces, while UPS Ground may offer better rates for heavier packages over extended distances.

Service Offerings and Features

Both carriers provide various services that cater to different shipping needs.

Tracking and Insurance

UPS typically offers more comprehensive tracking and insurance options, which can be crucial for high-value or time-sensitive shipments. USPS provides basic tracking and insurance at more affordable rates, suitable for less critical deliveries.

Pickup and Drop-off Locations

UPS has an extensive network of retail locations and drop boxes, offering convenience for many customers. USPS counters this with a broader range of pickup and drop-off options, including home pickup and delivery for certain services.

Understanding Cost Differences

When comparing shipping costs between UPS and USPS, it's essential to consider all associated fees and surcharges.

Additional Fees

  • UPS: Charges additional fees for residential delivery, fuel, and oversized packages.
  • USPS: Fees apply for delivery confirmation, insurance, and other services.

Dimensional Weight

Both carriers calculate dimensional weight by considering the package's size and weight. If the dimensional weight exceeds the actual weight, the higher weight is used for pricing, potentially increasing costs.

Delivery Speed and Reliability

Delivery timeframes differ between UPS and USPS, influencing cost and reliability.

UPS

UPS offers guaranteed delivery times with options ranging from next-day air to ground shipping, ensuring packages arrive by specific dates.

USPS

USPS provides estimated delivery dates without guarantees, which may be suitable for non-urgent shipments.

According to the USPS Service Guide, Priority Mail typically delivers within 1-3 business days, whereas UPS Ground can take 1-5 business days depending on the distance.

Choosing the Most Affordable Option

Selecting between UPS and USPS depends on your specific shipping needs and budget.

Package Size and Weight

For small and lightweight packages, USPS First Class Mail or Priority Mail is usually the cheapest option. For larger or heavier packages, especially over 70 pounds, UPS may offer more competitive rates.

Shipping Speed and Services

If you require guaranteed delivery times and enhanced tracking, UPS might be worth the extra cost. For more flexible delivery schedules, USPS offers affordable alternatives.

Tips to Save Money on Shipping

Shipping costs can add up, especially with frequent shipments. Here are some strategies to reduce expenses with both UPS and USPS:

  • Compare rates and services to find the most cost-effective option.
  • Avoid using express or overnight shipping unless necessary.
  • Use a shipping scale to accurately measure your package's weight.
  • Utilize USPS flat-rate boxes for small but heavy items.
  • Consider third-party shipping services for volume or commercial discounts.

Conclusion: UPS vs. USPS

Both UPS and USPS have their strengths and weaknesses, making them suitable for different shipping needs. UPS is ideal for large, heavy packages and business shipments requiring reliable tracking and guaranteed delivery times. Conversely, USPS is more cost-effective for small, lightweight packages and offers a variety of shipping options suitable for personal use.

Ultimately, the best choice depends on factors such as package size, weight, destination, and required delivery speed. By carefully evaluating your shipping needs and comparing rates, you can select the most affordable and reliable carrier for your shipments.

Additional Resources

About the Author

Anthony Robinson is the CEO of ShipScience, a pioneering company dedicated to helping e-commerce leaders optimize their shipping decisions, reduce costs, and automate tedious processes. With a Bachelors Degree in Economics from Stanford University, Anthony brings over two decades of expertise in logistics, business development, and operational efficiency to the table.
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