Shipping companies and carriers deliver products to merchants and customers alike. When comparing the top shipping companies—FedEx vs UPS vs USPS (United States Postal Service)—you should consider cost, speed, and service.
The biggest differences between UPS vs FedEx vs USPS are the carriers’ available shipping features and pricing for special services. Each one is reliable, offers affordable options if your package doesn’t need to arrive quickly, and allows you to pay more for faster delivery. Most small packages ship for less than $15 with each carrier.
FedEx vs UPS vs USPS at a Glance
2023-2024 Holiday Shipping Surcharges* | $6.95/package for U.S. Express Services, U.S. Ground, & International Ground | $6.90/package | None |
Pricing | High: competitive on larger parcels | High; competitive on larger parcels | Lower; best overall value |
Service Options | Ground through same-day | Ground through time-critical overnight | Ground through express |
Pickup Options | For a fee | For a fee | Free |
Drop-off Options | FedEx locations and retail centers | UPS locations and retail centers | Delivery address, post office box, US Army Post Office (APO), USPS locations, and retail centers |
Max Package Size & Weight | 108” in length and up to 165” in combined length and girth; 150 lbs | 108” in length and up to 165” in combined length and girth; 150 lbs | 130” in combined length and girth; 70 lbs |
Free Declared Value Liability | $100 | $100 | $100 |
Free Tracking | ✓ | ✓ | ✓ |
Commercial Discounts | ✓ | ✓ | ✓ |
Label Printing Options | FedEx.com and other integrations | UPS.com and other integrations | USPS.com and other integrations |
Customer Support Via Phone, Email and In-person | ✓ | ✓ | ✓ |
More Info | |||
*Holiday shipping surcharges are extra fees applied by carriers during the peak holiday season. These apply from October 2, 2023-January 14, 2024 for FedEx, and from October 1, 2023-January 13, 2024 for UPS. |
In the News: 2023–2024 Holiday Surcharges and Price Increases
- FedEx: Beginning Jan. 1, 2024, FedEx is increasing its shipping rates across multiple services by an average of 5.9% (slightly less than last year’s rate hike). From Oct. 2, 2023–Jan. 14, 2024, FedEx will be charging a holiday surcharge of $6.95/package for U.S. Express Services, U.S. Ground & International Ground shipping, and higher surcharges for oversized packages.
- UPS: UPS is also hiking its rates by an average of 5.9%, starting Dec. 26, 2023, which is a smaller increase compared to last year’s 6.9%. The holiday peak surcharge period runs from Oct.1–Jan. 13, 2024, and includes a rise in the “Additional Handling” fee from $3.50 to $6.90. For business shipping more than 20,000 packages during any week in the peak season, a volume-based demand surcharge will apply, starting at $1.35 for Ground Residential service.
- USPS: USPS will raise the price of a First-Class Mail Forever stamp by 2 cents, effective Jan. 21, 2024, and overall mailing services will see an approximate 2% price increase. Unlike FedEx and UPS, USPS will not levy any 2023 holiday surcharges.
When to Use FedEx vs UPS vs USPS
Overall, FedEx is best for:
- Businesses that need expedited shipping options, such as express and overnight delivery
- Businesses that ship perishable goods
- Businesses that ship large parcels, like furniture or appliances
- Merchants that sell and ship alcoholic beverages
FedEx is a good choice for businesses needing fast shipping options, including expedited, express, and overnight delivery. It’s particularly well-suited for larger businesses that can negotiate volume discounts or need international shipping, as it offers competitive pricing for small and lightweight packages. Additionally, FedEx operates seven days a week, making it an ideal option if you require a package to be delivered on a Sunday.
It is also the top shipping option for specialty items, like perishable food products or temperature-controlled goods. It provides specialty boxes like its proprietary cold packaging that can keep shipments between 35 and -46 degrees Fahrenheit for 48 or 96 hours without using dry ice or gel packs. FedEx can ship alcohol, provided you use FedEx Shipping Manager for your labels.
Generally, UPS is best for:
- Businesses that need expedited shipping options, such as express and overnight delivery
- Businesses that need competitive pricing on larger and heavier packages
- Merchants that sell and ship high-value items
- Selling to a global customer base and fast shipping for international orders
UPS offers express shipping options that go toe-to-toe with Fedex. It provides one of the fastest shipping options through its UPS Next Day services, which put your package on the next available flight (and often arrive the same day). Customers find that packages arrive much sooner than promised if you’re sending a package internationally.
This provider also has affordable and, generally speaking, quick and reliable ground shipping. Plus, it can ship alcohol, provided it’s not going to a consumer.
UPS also is the ideal choice if you are shipping heavier packages, such as pre-assembled furniture. UPS has a maximum weight limit of 150 pounds for its packages, compared to the 70-pound package limit of USPS. Additionally, you can insure packages up to $50,000, making it the better choice for sending luxury products such as collectibles.
If you need to ship fragile items, UPS provides delicate packing services using packing techniques such as block-and-brace, double box, and suspension.
USPS is best for:
- Shipping domestic orders within the US
- Businesses that need budget-conscious pricing
- Merchants that sell small items
USPS is one of the most competitively priced shipping carriers, particularly for packages under 20 pounds. It offers free pickup, Priority and Express Mail packaging, and a range of delivery options, making USPS one of the best shipping options for most small businesses.
One of the advantages of using USPS as a shipping courier is that it has discounted services, such as Priority Mail Cubic, where you can base shipping rates on a package’s outer dimensions rather than its total weight.
In general, USPS Priority Mail shipping is cheaper and faster than the other options in our cost comparison. Note that you can’t ship alcohol domestically or internationally using USPS.
Most ecommerce stores go with USPS because of the deep discounts it provides. USPS partners with many online software companies and offers shipping discounts even for small businesses, usually reserved for mid- to enterprise-level companies that send more than 50,000 parcels annually.
Did you know?
The Postmaster General announced a 10-year plan to address problems like service times, staffing challenges, and outdated networks and infrastructure. Effective May 1, 2022, the Postal Service implemented new service standards for First-Class Package Service (FCPS) that are designed to increase delivery reliability, consistency, and efficiency.
FedEx vs UPS vs USPS: Pricing & Speed Comparison
Each carrier has different options for shipping speed, customer support, and service options. Price and shipping speed are the most significant differentiating factors, as each carrier is relatively equal in other areas.
USPS averages the best overall rates for shipping everything from flat mailers to packages up to 70 pounds. However, shipping rates depend on many factors, including size, distance traveled, and service speed. The type of delivery location—home or business—also factors in since both UPS and FedEx charge more for home deliveries. All three options can be viable choices for ecommerce shipping, depending on your circumstances.
Shipping prices can vary if you purchase postage in person, and rates will be higher during the peak holiday season. Discounted rates are available from many fulfillment companies and shipping solutions, such as Stamps.com. To learn more, read our review of how Stamps.com works for small businesses.
To give you a better idea of pricing among UPS vs FedEx vs USPS, look at the table below for a cost and speed comparison on flat rate, overnight, ground, priority, small, and heavy packages.
FedEx vs UPS vs USPS Pricing Comparison (Updated October 2023)
Flat Rate | Starts at $11.10 | Starts at $10.20 | Starts at $9.35 |
Overnight | Starts at $61.25 | Starts at $67.44 | Starts at $28.75* |
Ground | Starts at $10.10 | Starts at $10.10 | Starts at $6.47 |
Small Packages | Starts at $12.40 for a small box (up to 420 cubic inches) | Starts at $13.35 for a small box (up to 250 cubic inches) | Starts at $6.15 for 12-ounce parcel |
Large Packages | Starts at $24.95 (up to 1,100 cubic inches) | Starts at $21.05 (up to 1,050 cubic inches) | Starts at $11.90 for a five-pound parcel |
*Priority Mail Express, which guarantees 1-2 days |
Use the shipping calculators or rate lists available on each of the courier’s websites to find exact rates for your specific package and route. Alternatively, you can use our dimensional weight calculator and learn how dimensional weight works, when it applies, and how to use it to reduce shipping costs.
FedEx Pricing & Speed
Certain FedEx Ground routes are cheaper than USPS and will get the package to your destination up to two days faster. This is especially true for larger, heavier shipments.
Should you need a package to arrive as soon as possible, you can get it to your destination as early as 10 a.m. the following day with FedEx First Overnight. You’ll find many drop box locations and retail partners if you don’t have a corporate location near you.
See FedEx’s current pricing sheet at the time of publication.
UPS Pricing & Speed
UPS pricing is competitive for heavier packages and any time you need to ship internationally. Should you need a package overnight, UPS Next Day Air is a suitable option, albeit a pricey one.
You’ll pay a small fee if you choose for UPS to pick up your package, but the convenience can be worth it if you’ve already got your shipping label and box packed. UPS also offers attractive commercial discounts compared to USPS.
See the UPS rate sheet at the time of publication.
USPS Pricing & Speed
Did you know?
The USPS maintained an average delivery time of 2.5 days with 11.7 billion mail pieces and packages during the 2022 holiday season.
USPS is one of the best options for sending packages under 20 pounds. It’s also a great option for shipping anything heavy and small, thanks to flat-rate shipping rates.
USPS is part of the executive branch of the US federal government, so the hours are more limited than those of FedEx and UPS. However, you can find a workaround by using one of USPS’s many retail partners—often grocery stores. USPS’s low prices and reliable delivery make it the best shipping option for many small businesses.
See the USPS pricing sheet at the time of publication.
FedEx vs UPS vs USPS: Shipping Features
Once you’ve reviewed the price comparisons between UPS vs FedEx vs USPS, the next element to compare is their shipping features.
Service Options
Pickup & Drop-off Locations
Free Tracking
- FedEx: FedEx customers can track up to 30 order numbers at a time. Small businesses may sign up for the free FedEx Delivery Manager service, which includes more tracking capabilities, pickup management, and delivery notifications.
- UPS: UPS offers free tracking for up to 25 tracking numbers via its website. Small business owners can sign up for the free UPS My Choice for Business program. With this, you can monitor inbound and outbound packages, manage returns, and track claims from the online dashboard. You can also create a branded tracking page for your customers to track their orders.
- USPS: USPS offers free tracking for up to 35 tracking numbers via its website. You can sign up for free business shipping services to track more orders.
Insurance
Label Printing Options
- FedEx: You can print a label on a regular or thermal printer. All FedEx Office locations will also print labels.
- UPS: After creating a shipment, you can either print shipping or return labels yourself or at a UPS Store. UPS also offers easy step-by-step instructions via its website if you want to install your thermal printer for labels.
- USPS: You can print labels at a USPS location or use the Click-N-Ship feature to print shipping labels yourself. To access Click-N-Ship, you’ll need to sign up for a free USPS account. The Label Broker ID program also gives customers the ability to print their own prepaid and return shipping labels via the USPS website or at most post office locations. The feature (which is part of the Click-N-Ship application) provides customers with a unique ID number or a quick response (QR) code scanned at USPS locations when shipping an item.
Commercial Discounts
Customer Support
- FedEx: You can contact FedEx via email, phone, or at one of its locations. Phone support hours are 7 a.m. to 9 p.m. Central time, Monday through Friday; 9 a.m. to 3 p.m. on Saturdays; and unavailable on Sundays. Users also have the option to chat with a FedEx representative or access an FAQs section and tutorials from the website.
- UPS: You can contact UPS via email or phone or by visiting one of their retail locations. Phone support hours are 6 a.m. to 1 a.m. Eastern time, seven days a week. You can also hop on to the UPS website to live chat with a virtual assistant or browse the FAQs section and tutorials. Preferred Customer account holders receive a dedicated support team and priority routing when contacting technical support.
- USPS: USPS customer support is reachable through phone, email, or in person at any location. USPS hours vary but are generally 9 a.m. to 4 p.m. local time—some branches close for lunch. There’s no chat feature on the USPS website, but you can check the FAQs section to find answers to common questions.
Tip: FedEx, USPS, and USPS all offer free shipping supplies if you use their shipping service. There are restrictions on quantity and type, but this is a cost-effective option for businesses just starting out, or if you only need to ship a small volume of parcels.
FedEx vs UPS vs USPS: Ease of Use
Each shipping carrier has many locations where you can drop off packages. However, these usually require you to have already paid for postage and packed your box. All three providers have retail partner locations inside grocery and office supply stores, many of which offer extended hours, with some operating 24/7.
Each carrier’s shipping calculator worked well, but we had minor issues with FedEx—if you’re shipping to a residential address, it uses the FedEx Home option rather than Ground. Using a dimensional calculator before you ship can help approximate cost.
FedEx Ease of Use
When calculating shipping rates, we had difficulty finding FedEx Ground options using the company’s calculator online. You may need to try multiple browsers to get the rates to show up. However, the rest of the rates were straightforward to calculate.
The FedEx Home Delivery option may show up if you’re shipping to a residential location rather than FedEx Ground. This service is faster and offers weekend deliveries to more residential areas.
While there are many FedEx locations, some smaller communities may only have one. FedEx hours are usually 9 a.m. to 7 p.m. Monday through Friday and 10 a.m. to 5 p.m. Saturday and Sunday. Extended hours may be found at FedEx counters within retail partner stores, such as some Walgreens, Dollar General, Office Depot, and OfficeMax locations.
UPS Ease of Use
The shipping calculator on the UPS website is easy to use and provides a simple table with all the rates based on your input. There aren’t many UPS locations, although there are many drop boxes and retail partners like Staples and PostalAnnex. Hours are daily from 8 a.m. to 6 p.m. or later, depending on location.
USPS Ease of Use
Calculating shipping is easy using USPS because you just need to enter the weight and the ZIP code you’re shipping from and to in the shipping calculator. While nearly every city and town has a USPS location, it may close for lunch in smaller cities and have limited weekend hours.
Retail USPS hours vary, so if you’re shipping or picking something up from the post office, you’ll likely have to take off work early. Typical hours are 8:30 a.m. to 5 p.m., although you may find extended hours at retail locations, such as those found in Walmart, Staples, or Hy-Vee. Additionally, many FedEx counters offer USPS products and services, including drop-off.
FedEx vs UPS vs USPS: Customer Reviews
In a battle of UPS vs FedEx vs USPS for fast shipping times, it was a tie for most customers, but USPS has the highest user ratings overall. That said, all 3 carriers have very low user ratings online.
When shipping internationally, customers favor UPS because shipments often arrive much sooner than expected. While pricing is higher for most shipment options through UPS and FedEx vs USPS, customers say they prefer UPS and FedEx because of customer service issues with USPS.
Here’s a breakdown of each shipping company’s customer reviews:
- FedEx: 1.3 out of 5 stars, 6K+ reviews on ConsumerAffairs
- UPS: 1.3 out of 5 stars, 6K+ reviews on ConsumerAffairs
- USPS: 2.2 out of 5 stars, 8K+ reviews on ConsumerAffairs
How to Reduce Your Shipping Costs
Shipping costs have a substantial impact on your business’s bottom line, so managing them wisely can make a big difference—especially during peak seasons. Here are four actionable ways to reduce your shipping costs, whether you ship with FedEx, UPS, or USPS.
Use Small and Lightweight Packaging Materials
Because of the way that carriers calculate shipping fees, reducing your shipping costs begins with smart packaging choices.
Dimensional Weight (DIM weight), a pricing method used by carriers, charges based on the amount of space a package occupies in relation to its weight. But, if a parcel’s actual weight is greater than its DIM weight, the carrier uses that instead.
So, by opting for smaller, lightweight packaging materials, you can significantly cut down on shipping costs. Use the smallest package that safely fits your products, and consider lightweight materials for outer packaging and void fill. Poly mailers are a prime example—they take up less space and weigh less compared to boxes, often securing lower rates from major carriers.
Offer Delivery Options
Offering a variety of delivery options—like standard, expedited, and in-store pickup—is a strategic move that caters to your customers’ diverse budget and urgency preferences while helping to minimize your shipping costs.
Standard shipping is a cost-effective choice for those with no time constraints, whereas expedited shipping caters to customers willing to pay a premium for faster delivery.
Or, if you have a physical retail location or nearby distribution center, in-store pickup significantly reduces shipping costs and offers an alternative for customers looking to save on shipping fees.
Use Shipping Software
Using shipping software to generate and print your labels as well as organize your shipments can be a game-changer in reducing your shipping costs. These programs allow for easy comparison of carrier rates, ensuring you can choose the best deal every time.
Plus, the automation of label creation and tracking saves time and avoids pricey errors. And most importantly, shipping software usually gives you access to significantly discounted rates by leveraging the provider’s volume discounts.
Our top-recommended shipping software solution is ShippingEasy—it’s easy to use and offers a free starter plan.
Outsource Shipping to a Third-Party Company
For ecommerce and retail businesses, order fulfillment and shipping is usually one of the biggest expenses. Partnering with a fulfillment company can help you cut down on the costs associated with labor, storage, packaging materials, and shipping.
These providers also ship very high volumes of packages, allowing them to secure low, negotiated rates with a variety of carriers, and they typically pass these savings onto you.
FedEx vs UPS vs USPS: FAQs
USPS usually turns out to be the cheapest option of the three major carriers, followed by UPS, while FedEx usually ranks last.
Remember that while you can save on shipping costs with USPS, you might need to deal with delayed deliveries and lower service standards. You can offset these by getting shipping insurance for your packages.
All three shipping companies are reliable. UPS and FedEx provide better tracking services if you wish for real-time updates. UPS also offers guaranteed express shipping, ensuring that your package will arrive on time.
UPS offers the most affordable rates for express delivery with its two flagship services—UPS Next Day Air® and UPS 2nd Day Air®. The latter is the cheapest UPS express service for packages that don’t need overnight delivery.
FedEx is the ideal choice for overnight delivery. FedEx even gives you different time frame options when you want your package to be delivered the next business day.
Bottom Line
Shipping and fulfillment might not be your first objective when starting your retail business. But as the lines between retail and ecommerce blur, your shipping choices can have a vast impact on your total expenses and overall customer experience. This is where shipping companies come into play.
When comparing FedEx vs UPS vs USPS, consider the price and shipping speed that your small business needs. While USPS has some of the best pricing, FedEx and UPS offer faster shipping times for a higher cost. When reviewing features of UPS vs FedEx, UPS tends to deliver international packages faster than promised.
USPS is typically the best comprehensive shipping solution for most low-volume businesses. There are no monthly requirements, the service is reliable, and the regular retail rates are very competitive. However, even lower rates and discounts are available through services like Stamps.com, making it easy to print shipping labels from home.