Analyze the pricing and services of the top 3 shipping companies to understand which best suits your business.
In America, shipping is synonymous with UPS or FedEx. Though the U.S. Postal Service (USPS) is larger by almost every measure, its package shipping program is no bigger than either of the major businesses.
In addition, though USPS has historically served as the last-mile solution for UPS and FedEx, the two private companies are now offering last-mile and same day deliveries themselves.
However, not every business will benefit equally by using the services of private carriers. A simple metric, for instance, is the cost based on the weight of shipments; if you want to ship something small and don't need same-day delivery services, you'll find USPS to be cheaper.
So, which one should be the carrier of choice for your business?
To help you figure that out, we've created this report that looks at the essential differences in the features and cost of services offered by the three carriers.
What's the difference between FedEx, UPS, and USPS?
If you measure by revenue in 2018, UPS is the largest company, garnering $71.9 billion, and is closely followed by USPS, with $70.6 billion. FedEx trails at $65.5 billion.
There are additional differences between these three carriers. For instance, FedEx has a large international shipping business, USPS is known for its large domestic network, and UPS is considered the go-to carrier for medical supplies.
Another difference is the customer support hours offered by each:
USPS phone support is available between 8 a.m. and 8:30 p.m. (EST) Monday through Friday and between 8 a.m. to 6 p.m. (EST) on Saturday.
UPS offers phone support from 7 a.m. to 9:30 p.m. (EST) Monday through Friday and from 7:30 a.m. to 5:30 p.m. (EST) on Saturday.
FedEx offers phone support from 7 a.m. to 9 p.m (CST) Monday through Friday and from 9 a.m. to 3 p.m. (CST) on Saturday.
The essential difference between the three boils down to two factors: speed and cost of delivery. In terms of speed of delivery, the two private carriers win with services such as UPS Express Critical and FedEx Same-Day Delivery. However, for packages of smaller dimensions and weight, USPS is often the best choice with options such as flat rate shipping and free pickup services.
FedEx vs. UPS vs. USPS: Pricing and features comparison
Comparing the three carriers on their cheapest plan, we calculated what each would charge to ship a 2-pound box (6 in. x 6 in. x 4 in.) and a 5-pound box (6 in. by 8 in. by 10 in.) from Los Angeles to New York City. Here's what we found:
2-pound box:
FedEx Ground: $15.73; four business days in transit
UPS Ground: $13.61; four business days in transit
USPS Retail Ground: $12.98; five business days in transit
5-pound box:
FedEx Ground: $21.21; four business days in transit
UPS Ground: $19.13; four business days in transit
USPS Retail Ground: $23.02; five business days in transit
Next steps—what's best in 2019?
The three giants of the logistics industry have their own growth strategy stories to tell in 2019: UPS is expanding its fleet and distribution space while also investing in emerging trends such as drone delivery. FedEx is leveraging digital technologies for business innovation, and USPS is trying to dwarf everyone in 2019 with its projected volume of 800 million package deliveries between Thanksgiving and New Year's Day.
With that said, here's the bottom line if you're a company looking to do business with one of these three:
If you ship small packages within the United States, then USPS is the cheapest option.
If international shipping is a priority and time is a primary concern, then FedEx is a good choice.
If you ship big packages, including medical supplies, then UPS is the best choice.
If you're a company looking for a logistics tool that'll boost productivity, check out Capterra's full logistics directory, which is full of software packages that are designed for businesses of different sizes and requirements.
You can also check out Capterra logistics blog that takes a deeper dive into fuel surcharges, and how they're affecting businesses large and small.