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FedEx/UPS vs USPS: Which will work Better for your Ecommerce Needs?

by Alicia Dale on 2014-12-01 16:45:00

As many of you are probably already aware, FedEx and UPS announced the use of dimensional weight to price all of their packages. If you are not familiar, we strongly encourage you to check out this slide share that will explain more. The effect of dimensional weight will depend on several factors, but it has opened the door for the United States Postal Service (USPS) to come in and make a strong play for more business. In an effort to take some of the business away from affected FedEx and UPS customers, USPS announced in September that they were going to lower their rates on Priority Mail packages.

Why USPS?

The USPS has had a reputation over the years as being in the second tier below UPS and FedEx. That is not the case anymore. They have the biggest postal infrastructure in the world and are delivering to every mailbox almost every day including Saturday. When FedEx and UPS were struggling through the 2013 holiday season to get packages delivered on time, USPS was moving like a well-oiled machine.  They have improved their technology so that tracking and visibility is top notch. USPS also has wide range of products from all different price points based on transit and visibility needs.

Why FedEx/UPS?

FedEx and UPS come with the brand names and the experience. They are reliable and have a history of providing excellent service with real-time tracking and proof of delivery. UPS and FedEx have insurance coverage for lost and damaged packages. This typically goes up to $100 per package, but more insurance can be purchased if needed. For heavier packages, UPS and FedEx have excellent pricing.

How to Choose?

In the past, USPS has been so quickly disregarded as a 'choice' delivery method and that is no longer the case. Before you choose the best shipping option for you, be sure to do all of your research and know the effects of their pricing on your bottom line. When shipping packages direct to consumer, your outbound parcel shipping price is usually the biggest cost. Keep in mind that USPS prices are set and typically non-negotiable, but with UPS and FedEx, everything in the contract can be negotiated. They are usually willing to provide feedback if you can provide them some data. Talk with both your UPS/FedEx and USPS representatives to help you.

For more information on whether shipping UPS/FedEx or USPS is right for you, please contact us today!

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