Which Is Cheaper: FedEx or USPS?

May 29, 2023
Written by
Anthony Robinson
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Which Is Cheaper: FedEx or USPS?

Shipping costs can significantly impact any business's budget. With two of the most popular shipping services available, FedEx and USPS, it's essential to compare them to determine which offers the most affordable shipping rates. This decision isn't straightforward, as several factors come into play. In this article, we'll examine these factors and compare the cost of shipping with FedEx and USPS.

Factors to Consider When Choosing Between FedEx and USPS

Before diving into the comparison of shipping rates, let's explore the key factors to consider when choosing between FedEx and USPS:

Delivery Speed

While both services offer various shipping speeds, FedEx is generally known for faster delivery times. If you need your package delivered quickly, FedEx might be the better choice.

Tracking Capabilities

Both FedEx and USPS provide tracking numbers for shipments. However, FedEx's tracking system is often more detailed and accurate, which is crucial for shipping high-value items.

Customer Service

Both companies have positive reviews for their customer service departments, though some users report negative experiences. FedEx is often considered to have more responsive and helpful customer service.

Insurance Options

Both services offer insurance on shipments, but USPS is typically more affordable for package insurance, providing significant savings for businesses shipping high-value items.

Package Size and Weight

FedEx has a weight limit of 150 pounds for packages, while USPS's limit is 70 pounds. Additionally, FedEx has size restrictions with a maximum length of 108 inches and a maximum length plus girth of 165 inches. USPS's size restrictions vary depending on the shipping method. It's essential to check these restrictions before making a decision.

A Comparison of Shipping Rates: FedEx vs. USPS

Shipping rates vary based on factors such as package size, weight, shipping speed, and destination. Generally, USPS is considered the more affordable option for shipping packages. However, for smaller packages or those needing quick delivery, FedEx's rates may be more competitive. Additionally, FedEx often offers discounts for businesses that ship frequently, which can make them more cost-effective in the long run.

Both FedEx and USPS offer additional services that can affect shipping costs. Services like insurance or signature confirmation come at an extra cost, so it's important to account for these when comparing rates.

The Pros and Cons of Using FedEx for Shipping

Advantages of FedEx

  • Fast Delivery Speeds: Ideal for urgent shipments.
  • Detailed Tracking: More accurate and comprehensive tracking information.
  • Variety of Delivery Options: Including same-day and Saturday delivery.

Disadvantages of FedEx

  • Higher Shipping Rates: Especially for larger or international packages.
  • Variable Customer Service: Some users experience inconsistent support.
  • Additional Fees: Extra costs for expedited delivery options.

The Pros and Cons of Using USPS for Shipping

Advantages of USPS

  • Affordability: Generally cheaper for packages of all sizes and destinations.
  • Consistent Shipping Rates: Rates don’t increase significantly for faster delivery speeds.
  • Extensive Network: Numerous post offices and drop-off locations nationwide.
  • Variety of Shipping Options: Including Priority Mail, First-Class Mail, and Media Mail.

Disadvantages of USPS

  • Slower Delivery Times: Especially for long-distance or international shipments.
  • Less Detailed Tracking: May be a concern for high-value items.
  • Limited International Shipping Options: More expensive and less reliable for international deliveries.
  • Financial Challenges: Concerns about maintaining service levels and pricing.

International Shipping with FedEx vs. USPS

When it comes to international shipping, FedEx and USPS have distinct differences:

FedEx for International Shipping

  • Faster Delivery Times: Preferred for urgent international shipments.
  • Detailed Tracking: More comprehensive tracking information.
  • Comprehensive Customs Documentation: Simplifies the shipping process for businesses.

USPS for International Shipping

  • More Affordable Rates: Generally cheaper for international packages.
  • Reliable Delivery Times: Suitable for certain destinations.
  • Experience with Customs: Extensive experience with international customs procedures.

Both carriers have restrictions on what can be shipped internationally. It's essential to review these restrictions before choosing a shipping carrier for your international shipments.

Tips to Save Money on Shipping Costs with FedEx or USPS

Regardless of the shipping service you choose, here are several tips to save on shipping costs:

  • Take advantage of bulk shipping rates offered by both FedEx and USPS.
  • Use a shipping calculator to determine the most cost-effective shipping speed.
  • Minimize package size and weight to lower shipping costs.
  • Opt for ground shipping instead of express shipping.
  • Package multiple items together in one shipment to save on costs.

Additionally, consider using a third-party shipping service to negotiate better rates with carriers. Proper packaging can also help avoid damage during shipping, reducing the need for return shipping or replacements.

How to Choose the Best Shipping Service for Your Business Needs

Choosing the best shipping service for your business involves evaluating your specific needs:

Identify Your Priorities

  • Delivery Speed: Do you need fast delivery times?
  • Shipping Rates: Are low shipping costs a priority?
  • Tracking Information: Do you require detailed tracking?

Consider Package Size and Weight

Check the maximum weight and size limits of each shipping service to ensure they align with your business needs.

Evaluate Customer Service

Choose a shipping service that offers reliable customer support, ideally with 24/7 availability, to address any shipment issues promptly.

Real-Life Examples of Cost Savings with FedEx or USPS

Here are a few real-life examples illustrating potential cost savings:

  • A small business shipping a 2 lb package from New York City to Los Angeles with FedEx Ground could expect to pay around $21.66. The same package shipped with USPS would cost approximately $11.75 with Priority Mail.
  • A business shipping a 10 lb package from New York City to Paris with FedEx International Priority might pay around $222.09, while USPS International Priority would cost about $150.95.
  • A business shipping a 50 lb package from New York City to Miami with FedEx Express Saver could expect to pay around $187.54. The same package shipped with USPS Priority Mail would cost approximately $76.85.

Final Verdict: Which is Cheaper, FedEx or USPS?

So, which shipping service is cheaper – FedEx or USPS? The answer depends on your specific needs:

  • Smaller Packages & Quick Delivery: FedEx's rates may be more competitive.
  • larger or International Packages: USPS is often the more affordable option.
  • Businesses Prioritizing Low Shipping Rates & Reliability: USPS is typically the best choice.

Ultimately, the best way to determine which shipping service suits your business is to evaluate your unique requirements and compare the features and costs of each service accordingly.

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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