Shipping cost is a huge factor you cannot ignore when selling online. It can be manageable, or it can tamper with your business profit margin. This then makes the ability to choose a carrier that does not only offer reliable services but is also affordable very important.
The four main carriers, FedEx, UPS, DHL, and USPS, all offer competitive rates. But if you look keenly, you can spot some differences in their services which actually affect how they charge for their operations. By comparing and taking advantage of these differences, you can save money. To save even more money effectively, think Betachon.
With Betachon, you can take control of your shipping costs and start shipping like a pro. Request a demo today to learn more about this and more.
Which carrier is affordable to use?
To comprehensively answer this question, we need to look at different shipping operational services offered by FedEx vs. UPS vs. DHL vs. USPS. This way, we can determine which carrier is affordable for A services and which one is expensive for A services.
That said, here are different factors we used to compare FedEx vs. UPS vs. DHL vs. USPS shipping costs.
Flat rate
All four carriers except DHL offer flat rates for packages within a certain dimension. Here’s how they compare:
FedEx
FedEx offers a flat rate for packages weighing up to 50lbs and envelopes under 10 lbs. They’ll provide free packaging materials, and you get to choose when your package is delivered between one, two, or three days. You also need to select a pickup or a drop off in one of their 57,000 convenient locations.
UPS
UPS offers five flat packaging rates, which come with four shipping delivery timeframes. This is delivery in five days, three business days, second day, or next day. The flat rate covers packages for up to 50 lbs.
DHL
DHL doesn’t have a flat-rate delivery option.
USPS
USPS offers a flat rate for packages weighing up to 70lbs. They’ll deliver your package in one to three days. What’s more, every flat rate package is insured up to $50, and if the package is worth $50 or less, it will be covered if lost.
Here are the starting flat rates for various sizes of boxes.
| Size of the box | FedEx | UPS | DHL | USPS |
|---|---|---|---|---|
| Small box | $12.05 | $12.40 | N/A | $9.45 |
| Medium box | $15.70 | $14.95 | N/A | $16.10 |
| Large box | $24.20 | $19.60 | N/A | $21.50 |
| Extra large | $39.10 | $24.30 | N/A | N/A |
Overnight
If you offer fast delivery to customers, overnight shipping services may be something to consider. Good thing all four carriers offer an overnight delivery service within the U.S. However, their pricing and difference in delivery hours are something you want to consider. This is how they compare:
FedEx
FedEx offers three next-business-day delivery options. These are first overnight, priority, and standard overnight. First overnight will ensure your package is delivered by 8:00 am and latest, at 2 pm, While the standard option will get the package delivered by 4:30 pm to U.S. businesses and latest, 8 pm to residences.
UPS
UPS also offers three different options. They have the UPS Next Day Air® Early, which ensures delivery by 8:30 am or 9:00 am to most U.S. cities. They also have the UPS Next Day Air® and UPS Next Day Air Saver®, which ensure your packages are delivered by 4:00 pm.
DHL
DHL offers next-day delivery, which, in some cases, the package arrives before the end of the shipping day.
USPS
USPS offers the next day to two days delivery by 6 pm for priority mail. This offer comes along with a money-back guarantee option.
Here are the shipping costs for sending a 2 lb package size 10″ x 5″ x 5″ from Brooklyn, New York, to Miami, Florida.
| Overnight shipping service | Shipping cost |
|---|---|
| FedEx First overnight | $140.79 |
| UPS Next Day Air | $102.86 |
| DHL next day delivery | $48.19 |
| USPS Priority Mail Express | $50.35 |
Less-urgent packages going to other countries
If you want to send your packages but don’t mind sending them over a few days, you want to look into less-urgent shipping options.
In shipping, the speed of delivery is usually proportional to costs. Therefore, longer shipping delivery times are less expensive than urgent delivery times- (overnight shipping).
This is how these four carriers compare for less-urgent packages being shipped internationally.
FedEx
FedEx has an International Economy option that offers door-to-door economy service. The packages need to be no more than 150 pounds, and the delivery time is typically five business days. The service also comes with a money-back guarantee option.
UPS
UPS has a Worldwide Expedited, which is a fast, guaranteed service for less-urgent international items.
DHL
DHL Express Worldwide is still an option for delivery to other countries, as well.
USPS
USPS has a First Class Package International Service. If your packages are heavier than four pounds or you want the package to arrive faster, consider using USPS Priority Mail International, with a typical delivery time of six to eight days.
Here’s the shipping cost for shipping a 10-ounce package measuring 6 x 8 x 4 in traveling from Boston, MA, to London, UK.
| FedEx | $119.11 |
|---|---|
| UPS | $114.21 |
| DHL | $31.49 |
| USPS | $23.28 |
Less-urgent, lightweight packages going to Canada
For less time-sensitive orders that are lightweight and are being shipped to Canada, you may want to go check the following difference in costs.
With FedEx, you can use their International Ground shipping option, which supports packages up to 150 pounds.
UPS has a standard economical ground shipping option that only ships to the U.S., Mexico, and Canada. It does ship to Alaska or Hawaii.
DHL Express Worldwide is also a great option, and what’s more, its transit time is by the end of the next possible business day.
USPS First Class Package International Service is a great option, especially for lightweight, smaller items such as envelopes, postcards, and flats. You can send packages that are up to four pounds to more than 180 countries using this option. Note the item shouldn’t exceed $400 in value.
Here’s a shipping cost comparison for a package weighing 2 pounds and measuring 6 x 8 x 8 in traveling from Sacramento, CA to Toronto, Ontario
| FedEx | $25.90 |
|---|---|
| UPS | $29.41 |
| USPS | $19.71 |
| DHL | $31.38 |
Delivery option for international packages that will arrive in 3-5 days
International shipping is every business dream. And being able to offer delivery to customers within a few days, say three to five days, can help you retain a huge base of loyal customers.
The good thing is, these four carriers offer three to five day delivery timeframes.
FedEx International Priority typically ships in 3 business days.
UPS Worldwide Expedited ships in 2-5 business days.
DHL Express Worldwide continues to be in the mix. For packages to be delivered within Europe, they’ll deliver before the end of the working day, while packages outside Europe can be anywhere from before the end of the day to a few working days.
USPS Priority Mail Express International ships in 3-5 business days.
Here’s a shipping cost comparison for an 8-ounce, 2 x 10 x 1 in. package traveling from Miami, FL, to Taipei, Taiwan.
| FedEx | $103.00 |
|---|---|
| UPS | $99.51 |
| USPS | $53.07 |
| DHL | $30.68 |
Ground
Ground shipping refers to shipping via land transport, either by trucks or trains. It’s one of the most cost-effective ways of shipping goods to domestic customers. It’s also a great last-mile delivery option for international shipping.
Another advantage of ground shipping is there are no size and weight limitations. Whether you’re shipping concert tickets or a grand piano, ground shipping will ensure your customers get what you promised.
Ground shipping also offers fewer delays, and both you and the customer can track your orders which helps minimize friction between you two.
All four carriers offer ground shipping. With FedEx, DHL, and UPS, you get real-time tracking updates at every transit as well as an alert in case of shipping disruptions.
USPS, on the other hand, offers a retail ground shipping service for packages weighing up to 70lbs with a length and girth of 130 inches. This service is only available at the USPS Post Offices. They also offer tracking at no additional fee.
Here’s a comparison of starting fees to help you in calculating shipping costs.
| Carrier | Cost per pound | Surcharge |
|---|---|---|
| FedEx | $8.23 | $4 surcharge for home delivery |
| UPS | $7.57 | $ $4.30 residential surcharge |
| DHL | $6.75 | N/A |
| USPS | $7.35 | N/A |
Home delivery
If you offer door-to-door delivery, you may want to know how these four options compare service and price-wise.
Well, FedEx Home service is a great option for heavy packages. Their delivery times are within five days.
UPS® Ground and USPS Priority Mail are also ideal for heavy packages. They also offer the same delivery timeframe as FedEx. The only difference is that with USPS, the package should weigh 70lb or below.
DHL is also an equal competitor when it comes to home deliveries. It has a door-to-door expedited shipment service, and their delivery is the next possible business day.
Shipping a 65 lbs package from Brooklyn to Miami using home delivery options will cost you the following:
| Service | Costs |
|---|---|
| FedEx Home | $124.86 |
| UPS® Ground | $128.81 |
| DHL | $167.16 |
| USPS Priority Mail | $119.90 |
Small packages
If you ship small packages, it may be challenging to find more options for your small parcel shipping orders. However, comparing these four carriers, you’re bound to find one that will meet your needs. Here’s how they compare.
FedEx
FedEx offers several package shipping costs for small packages such as envelopes, a mug, a file, and a shirt. This offer is provided through their one-rate predictable flat-rate shipping service.
UPS
UPS, on the other hand, offers two options for small packages; extra small and small package shipping services starting at $9.45 and $12.40, respectively.
DHL
DHL is another great option for small packages. For one cubic foot or under 1 lb packages, the charges are not subject to weight rules; rather, they are invoiced based on the actual weight. Their delivery time is between one and three days.
USPS
USPS offers First Class Mail envelopes, flat rate envelopes, and USPS Priority Mail which are quite ideal for small packages. Their cubic pricing is also a great option for shipping small, heavy packages that are 20 lbs and below. Their delivery is within one to five business days.
Here’s how the charges for a package of 12 ounces compare for the different carriers.
| Carrier | Cost |
|---|---|
| FedEx | $13.85 |
| UPS | $10.72 |
| DHL | $13.36 |
| USPS | $3.82 |
Heavy packages
If your package is 70lbs or above, it’s considered a heavy package. And since shipping costs are mainly determined by the weight and size of the package -unless you ship through a flat (which also has a weight limit), carriers tend to offer competitive shipping services for heavy packages.
UPS ground and FedEx home delivery are ideal for heavy package shipments. DHL is also a great alternative. With DHL, you can ship items of up to 3,000kg.
Here’s the cost for shipping a package that measures 10” x 5” x 5” and weighs 70-pound from Brooklyn, New York, to Miami, Florida.
| Carrier | Cost |
|---|---|
| FedEx Home Delivery | $127.43 |
| UPS® Ground | $131.46 |
| DHL | $180.89 |
| USPS Retail Ground | $111.40 |
Commercial Discounts
All four carriers offer commercial discounts to small businesses to help offset the high shipping costs. This is how these discounts compare:
FedEx
All small businesses that open a free account with FedEx get access to a savings and reward program. Through this program, you get to enjoy the following:
- Up to 30% off for U.S. domestic, international, FedEx Express, and return shipping
- 15% off FedEx Home Delivery services and FedEx Ground shipping, including returns
- 70% off FedEx Freight on select business accounts
- Free packaging supplies, including boxes, envelopes, packs, and tubes
- Account management tools such as online billing, reporting, and address book
UPS
Small businesses that ship through UPS get access to discounted shipping rates, offers, and deals if they open or link an existing UPS My Choice or UPS My Choice for Business account.
Here’s what all account holders receive:
- 20% to 50% off on UPS Air Services, UPS Ground, and UPS International Express Services shipping rates
- Free Pickup service
- Discounts on packing services, online print products, mailbox services, and shredding services, all of which push shipping costs down
USPS
USPS offers volume discounts as long as you hit the set minimum threshold of packages per mailing. What’s more, business customers get access to the following:
- Free tracking
- Free pickup
- Free shipping supplies for all Priority Mail Express International, Priority Mail Express, and Priority Mail shipments
- No surcharges for residential delivery
DHL
DHL has a rewards program that’s based on how much you ship with them. The higher your shipping volume, the more the chances of receiving better deals. They also offer the following offers:
- Up to 30% off when you shop with a credit card
- Up to 30% off on international shipping when you use a business account
- Up to 45% off on international business shipping when you use your DHL Express business account
Additional Handling Shipping Costs
To ensure your packages get special handling and reach their destination intact, you may be charged an additional fee by the carrier you’re using. This fee may be charged if:
- Your package is a very wide or long parcel.
- Your package is heavy.
- Your items have no traditional packaging.
- You need residential delivery.
- You want a non-stackable parcel or freight.
- You need to correct the address of the package
All four carriers charge specific additional handling fees. Here’s how the shipping prices compare per package.
| FedEx | $25.50 |
|---|---|
| UPS | $10.85 |
| DHL | $94 for pieces exceeding 70 kg |
| USPS | $12.15 |
Pick Up and drop-off costs
Pickup costs are costs that carriers charge for picking up their packages in designated service areas before shipping.
Here is how these four carriers compare:
FedEx
Their pickup fees start at $4. You can also opt to pay via a recurring weekly pickup arrangement that FedEx charges $14 per week.
You can alternatively drop off your packages at any FedEx or partnering retail location such as OfficeMax, Office Depot, and popular grocery stores for free.
FedEx also offers collect-on-delivery (COD) services for Ground shipments and electronic collection-on-delivery (ECOD) at a fee. These options are only available to shippers in the U.S.
UPS
UPS doesn’t charge for pickup. It provides on-demand pickup of all shipments. You only need to schedule future dates, include clear instructions to the driver, and add email confirmation messages or short message service (SMS).
Alternatively, you can also drop off packages at UPS Store, UPS Access Point, UPS Drop Box, or any independent authorized shipping outlets.
DHL
The DHL pickup fee is based on your shipment. You can either call the DHL team on the phone to book a pickup, or you can schedule the pick up time and date via their website.
You can also drop off your packages for free at any of their designated areas.
USPS
USPS offers free pickup for all your packages regardless of how many they are. You just need to schedule the pickup using your regular mail delivery location through the USPS website.
You can also schedule pickup conveniently in advance at an extra cost. This is usually ideal if you need your package to be picked up on a specific day within a particular time frame. The fee is usually charged per trip, regardless of the number of items scheduled for pickup.
Alternatively, you can also drop off your packages at any USPS pickup location.
Insurance
All four carriers offer insurance coverage you can use to claim for damages incurred. The cost of this insurance is usually influenced by the declared value of the items in the package.
Most carriers also offer standard coverage for all packages. And even though this coverage may be limited, if you don’t already have third-party insurance, carrier insurance cover may come in handy, especially when you want to offset high shipping costs that may be brought by due to repairing or replacing items already shipped to customers.
Here’s how FedEx, UPS, DHL, and USPS insurance coverage compare:
FedEx
FedEx offers up to $100 of coverage for every package you ship. If you need additional coverage, you have to declare the value of your package.
UPS
UPS also offers up to $100 of coverage for every package you ship. It also allows you to declare a value of up to $50,000.
DHL
DHL offers standard insurance coverage that covers a percentage of your shipment in case of damage or loss of your package. They don’t clearly say what the percentage is, but it is offered at no additional cost to you.
USPS
USPS offers coverage of up to $5,000 for items damaged or lost during shipping. What’s more, registered mail can get coverage for up to $50,000.
Having looked at the different shipping costs charged by the four different carriers, you may want to have a well-wrapped-up understanding of when to use which carrier and why.
For these reasons, here’s a summary of when to best use either carrier.
When to Use FedEx?
FedEx can be used for various shipping operations, but it’s best suited for the following:
- Shippers that need fast shipping options. Their express and overnight delivery is especially ideal for perishables items
- Shippers that ship large items such as furniture
- Businesses that ship alcoholic drinks
- Shippers that need Sunday package arrivals
FedEx is a great choice if you ship high-volume packages since the carrier offers competitive pricing for small and lightweight packages. The costs won’t dig deep into your pockets.
Something else, FedEx is the best shipping option for specialty items such as perishable food products or temperature-controlled goods. With FedEx, you’ll get specialty boxes that keep your items between 35 and -46 degrees for 2 or 4 days. like
When to use UPS?
Overall, UPS is ideal for the following:
- Merchants ship large and heavy items and need competitive pricing
- Businesses that ship high-value items
- Shippers that ship international orders and need fast shipping
UPS heavier package shipping services are perfect, especially for items such as pre-assembled furniture. The maximum weight limit for packages is 150 pounds which is higher than the 70-pound package limit USPS.
UPS Next Day service is also one of the fastest options you can get. Customers admit that orders actually arrive much sooner than promised.
UPS ground shipping is also one of the most affordable, quick, and reliable shipping options. Moreover, the carrier can ship alcohol, so long as it’s not going to a consumer.
Additionally, the carrier allows shippers to insure packages up to $50,000, making UPS the better choice for shipping luxury products.
When to use DHL?
DHL is best suited for the following:
- Shippers that want fast shipping options
- Businesses looking for a cost-effective carrier that can ship fragile items
- Businesses that ship heavy items domestically or internationally
Even though DHL doesn’t offer flat-rate delivery options, its pricing overall is quite cost-effective. And even though you may need to pay more, pick up additional handling fees and other in-between fees, these are fees you cut off if your shipping operations are not quite sensitive to all these needs.
When to use USPS?
USPS is great for the following services:
- Domestic orders within the U.S.
- Shippers that need cost-effective shipping rates
- Businesses that ship small items
USPS is not a great choice if you ship alcohol domestically or overseas. But it’s a great option for packages under 20 pounds due to its competitive pricing.
USPS shipping rates are also ideal due to its discounted services, such as Priority Mail Cubic, where you can get shipping rates for a box’s outer dimensions, not its total weight.
Calculate shipping costs and get the best rates
While one main reason you’re doing business is to generate a source of income, some operating costs can take a toll on your budget. One such operating cost is the shipping costs. This cost can be so high that it squeezes your profits. It can be a huge hindrance to expanding your business. And that’s why comparing the shipping costs for different major carriers is quite important. It can help you spot opportunities you can take advantage of.
If you’re using a delivery option that’s digging holes in your pockets, it’s time to shift. And if you’re already using a shipping option that seems fair enough, it’s advisable you get an audit to help you evaluate what you’re paying for. An audit can save your business a lot of money you can use to fund your other business operations.
An audit can also help you save time you would normally use to monitor your invoices. With an audit, you get someone to optimize your shipping rates and agreements for better discount offers. At Betachon, we offer audit services to shippers like you. We also have other services you’ll love. Contact us today to request a demo. The best part- you don’t pay till we help you start saving on shipping costs!