How to Select The Best Shipping Carrier For Your Business: USPS vs. UPS vs. FedEx
As your business grows, you need a professional shipping carrier you can rely on to get your products directly to your customers. Customers have come to expect fast shipping when they purchase products online. 46% of customers will abandon their online shopping carts if shipping times are too long or unavailable.
For small businesses, the US has three top shipping providers: USPS, UPS, and FedEx. All three carriers have a long history of providing reputable shipping services, but each has advantages and disadvantages.
In this article, we’ll explore how to choose a shipping carrier for your business and compare the pros and cons of the top three options.
Why You Need a Reliable Shipping Carrier
Competition among eCommerce brands is higher than ever. The internet has enabled customers to buy items around the globe in just a few clicks. It’s not enough to have a great product—you’ll also need to provide a stellar customer experience, which includes seamless shipping and delivery.
A good shipping carrier consistently delivers products to customers on time and in good condition. This reflects positively on your brand, encouraging customers to return for future purchases or recommend your brand to their friends.
Working with a reliable shipping carrier also makes it easier to run your business. You’ll get peace of mind knowing that your products will reach their final destination, which frees you up to focus on other aspects of your business. A quality shipping carrier can also save you money, as they will help prevent lost packages and help you find the best bulk rates for your products.
What to Consider When Choosing a Shipping Carrier
When selecting a shipping carrier for your brand, there are various factors to consider. Every business has unique shipping needs, so you’ll need to weigh the pros and cons to see what makes the most sense for your brand. Here’s what to keep in mind when making this decision.
Delivery Radius
The first thing to assess when selecting a shipping carrier is where they will deliver. You’ll need to consider where your customers are and find a provider that can reach them.
If your company wants to reach an international audience, you will need a shipping carrier that can accommodate delivery to a wide range of countries. Alternatively, if your customers are primarily concentrated in one country or region, you might want to choose a provider that focuses on this area, as they may be able to offer faster or more affordable delivery options.
You’ll also want to consider whether your shipping provider can deliver to remote areas. Offering rural delivery options will make your brand more accessible to many people.
Pricing Structure
Another key factor to consider is each shipping carrier’s pricing structure and how that will fit into your budget. Opting for a low-cost carrier will save you money, but they also may not offer the shipping guarantees or fast delivery times you need to meet your customers’ expectations.
A premium carrier may go above and beyond for your shipments, but they may also be outside of your current budget. You’ll need to find the right balance of service and affordability for sustainable shipments.
In addition, you’ll need to consider how each carrier prices its shipments to determine what makes sense for your business. Most carriers use a formula that considers the shipment’s size, weight, and distance to determine the final price. Some carriers also charge extra fees for insurance or delivery guarantees.
Tracking Options
Ideally, your shipping carrier should provide visibility into your delivery routes so you and your customers can see where orders are and when they’ll arrive. When selecting your provider, consider the type of tracking options and shipping notifications they offer.
Tracking orders from start to finish can help you quickly catch and correct shipping errors. It also helps your customers feel more comfortable, as they’ll know exactly when to expect their orders.
Speed and Consistency
When selecting a shipping carrier, read reviews from past customers to get an idea of their reputation. A reputable shipping carrier should consistently be able to get shipments to their final destination safely and in the agreed-upon time frame. They should also proactively communicate with customers in the event of inclement weather, staffing issues, or other problems that could cause delays.
Sustainability
Depending on your organization’s values, you may prioritize sustainability when selecting a shipping provider. Some carriers offer eco-friendly packaging or use electric vehicles to reduce their environmental impact.
USPS: Pros and Cons
The United States Postal Service is a government-funded agency that offers a variety of business and personal mail options. USPS is known for offering very affordable shipping options to virtually every address in the US. However, when compared to other carriers, shipping times are not quite as fast.
Pros of USPS:
- Affordable, lightweight shipping: USPS offers some of the cheapest rates on the market for small, lightweight items.
- Wide shipping range: USPS can ship to virtually every address in the US, even those in remote areas. They also offer shipping to more than 180 countries worldwide.
Cons of USPS:
- Limited tracking options: Compared to other shipping carriers, the USPS’s tracking options are fairly limited. However, they still provide estimated delivery dates and times and updates as shipments meet key checkpoints along the way.
- Not ideal for large packages: USPS isn’t as cost-effective as other carriers for shipping overly large or heavy items.
Limited delivery guarantees: Not all USPS shipments will arrive by a specific day or time.
Delivery Options
USPS’s standard delivery options include:
- Priority Mail Express: 1-2 day guaranteed delivery
- Priority Mail: 1-3 day delivery
- USPS Ground Advantage: 2-5 day delivery
- First-Class Mail: Delivery for letters or large envelopes
UPS: Pros and Cons
The United Parcel Service, or UPS, is one of the largest and most trusted shipping carriers in the world. It has been in service for over 100 years and is known for fast, reliable shipping both in the US and internationally. However, UPS isn’t always the most cost-effective for small businesses.
Pros of UPS:
- Reliable delivery: UPS is known for its fast delivery speeds and offers a variety of options, ranging from standard ground shipping to urgent overnight shipments. To ensure reliability, UPS also guarantees on-time delivery with many of its services.
- Extensive international shipping options: If you need to ship internationally, UPS offers various options to help you get your package there quickly and safely.
- Comprehensive tracking: UPS has one of the best tracking systems in the shipping industry, allowing you to see your shipment’s location in real-time.
- Bulk shipping options for small businesses: Although UPS can be pricey, the platform offers bundles and discount packages for small businesses, which can help you operate more cost-effectively.
Cons of UPS:
- Higher prices: UPS tends to cost significantly more than USPS for domestic shipments. It can also be slightly more expensive than FedEx for international shipments. However, exact prices will vary.
- Add-on fees: UPS sometimes adds extra charges for large packages and remote delivery options.
Delivery Options
UPS delivery options include:
- UPS Ground: 1-5 day domestic delivery
- UPS 2nd Day Air or UPS 3 Day Select: 2 or 3-day domestic delivery
- UPS Next Day Air: Overnight domestic delivery
- UPS Worldwide Economy: 5-12 day international delivery
- UPS Worldwide Expedited: 2-5 day international delivery
- UPS Worldwide Express: 1-3 day international delivery
FedEx: Pros and Cons
FedEx is another popular global shipping carrier known for speed and reliability. FedEx is particularly well-known for its international shipping options, as they provide shipping to more than 220 countries around the world.
Pros of FedEx:
- International network: FedEx has a massive shipping network that spans nearly the entire globe.
- Options for large or hazardous items: FedEx also provides shipping options for items that are particularly large, abnormally shaped, or contain potentially hazardous materials, helping customers get these items to their destinations safely.
- Fast shipping: FedEx offers a wide range of priority shipping options, helping you get your products to their destination quickly.
Cons of FedEx:
- Can be expensive: FedEx is marginally cheaper than UPS for some shipments, but it can still be very pricey, particularly for express international shipping.
- Limited availability in rural areas: FedEx may not be able to deliver to particularly remote locations, which can be frustrating for customers.
Delivery Options
FedEx delivery options include:
- Standard: Domestic delivery within 1-5 business days
- Expedited: Urgent domestic service with guaranteed delivery time
- Same-Day: Domestic delivery within 24 hours
- International: International shipments within 1-7 days, priority options available
- Freight: Shipping for items over 150 pounds
|
| FedEx | UPS | USPS |
|---|---|---|---|
| Delivery Speed | Excels in overnight and time-definite deliveries. | Reliable express options and ground service. | Standard is slower, but Priority Mail is faster and affordable. |
| Shipping Rates | Premium pricing for speed; better for large shipments. | Generally higher for small packages; good for heavy items. | Most affordable for small, lightweight and flat-rate boxes. |
| Tracking | Detailed real-time tracking updates. | Reliable and comprehensive tracking. | Basic tracking, less detailed than private carriers. |
| International Shipping | Robust global delivery network. | Strong international presence and services. | Available, but not as robust as FedEx or UPS. |
| Additional Services | Specialized shipping (hazmat, perishable goods, etc.). | Supply chain, freight, and logistics solutions. | Saturday delivery, PO Boxes, and flat-rate options. |
| | | | |
The Final Verdict
|
| FedEx | UPS | USPS |
|---|---|---|---|
| Delivery Speed | Excels in overnight and time-definite deliveries. | Reliable express options and ground service. | Standard is slower, but Priority Mail is faster and affordable. |
| Shipping Rates | Premium pricing for speed; better for large shipments. | Generally higher for small packages; good for heavy items. | Most affordable for small, lightweight and flat-rate boxes. |
| Tracking | Detailed real-time tracking updates. | Reliable and comprehensive tracking. | Basic tracking, less detailed than private carriers. |
| International Shipping | Robust global delivery network. | Strong international presence and services. | Available, but not as robust as FedEx or UPS. |
| Additional Services | Specialized shipping (hazmat, perishable goods, etc.). | Supply chain, freight, and logistics solutions. | Saturday delivery, PO Boxes, and flat-rate options. |
| | | | |
Ultimately, the right shipping carrier for you will depend on the type of items you’re shipping, your expected delivery times, and the tracking options you need.
In general, USPS is the most cost-effective method of shipping small packages to addresses within the US. FedEx is most cost-effective for international shipments or heavy packages. UPS provides a middle-of-the-road option and is known for its tracking system and delivery guarantees. When deciding, you’ll need to decide what to prioritize in your shipment strategy.