Any business owner knows that shipping costs can be a significant expense, especially if you don’t ship enough volume to qualify for lower rates.
In this guide, we'll compare the parcel shipping rates and services offered by FedEx and UPS to help you decide which parcel shipping company best suits your needs.
UPS (United Parcel Service) is a multinational company providing shipping, logistics services, and global supply chain management solutions. FedEx (Federal Express) is a worldwide delivery and shipping company focused on transportation, e-commerce, and business services.
UPS and FedEx are similar in that they are both privately-owned courier companies. However, the two companies differ in some areas listed below:
Both UPS and FedEx deliver to over 220 countries and territories. However, UPS is more focused on domestic ground package shipping. This is why UPS has more ground vehicles than FedEx. On the other hand, FedEx specializes in worldwide express deliveries via air freight, which is why it has more aircraft than UPS.
Based on these facts, we can see why FedEx generally offers cheaper rates on worldwide shipping, and UPS generally offers better rates on domestic shipping.
Let's look at FedEx vs. UPS rates for common domestic shipping services.
*rates accurate as of March 2023
UPS Ground Shipping Rates vs. FedEx Ground Shipping Rates:
FedEx Ground and FedEx Home Delivery Rates (1-5 days delivery time)
Prices range from $10.10 to $152.56, depending on the weight of your package and the destination zone.
UPS Ground Shipping Rates
Prices range from $10.10 to $856.00, depending on the weight of your package, the destination zone, and the rate package you use (daily rates or retail rates).
|
FedEx First Overnight |
FedEx Priority Overnight |
FedEx Standard Overnight |
FedEx 2Day AM |
FedEx 2Day |
FedEx Express Saver |
|
|
FedEx® Envelope up to 8 oz. |
From $61.25 - $90.41 |
From $30.25 - $59.41 |
From $29.54 - $55.79 |
From $24.05 - $41.49 |
From $22.59 - $37.55 |
From $21.03 - $34.37 |
|
Shipments in all other packaging |
From $68.04 - $1,594.50 |
From $37.04 - $1,548.00 |
From $33.87 - $1,474.50 |
From $25.37 - $1,309.50 |
From $22.59 - $1,104.00 |
From $21.03 - $940.50 |
|
UPS Next Day Air Early |
UPS Next Day Air |
UPS Next Day Air Saver |
UPS 2nd Day Air AM. |
UPS 2nd Day Air |
|
|
Standard Package |
From $67.44 - $1,742.67 |
From $37.44 - $1,750.83 |
From $34.22 - $1,489.25 |
From $24.95 - $1,311.73 |
From $22.82 - $1,139.60 |
|
Package over 150 pounds (price-per-pound) |
From $2.68 - $11.42 |
From $2.68 - $11.67 |
From $2.63 - $9.93 |
From $2.68 - $11.42 |
From $1.72 - $7.60 |
|
UPS Facts and Company Structure |
FedEx Facts and Company Structure |
|
Founded: August 28, 1907 in Seattle, Washington Headquarters: Atlanta, GA Website: UPS.com Employees: More than 500,000 Service area: More than 220 countries and territories Customers: Approx. 1.7 million shipping and 11.8 million delivery (2021) Operating facilities: More than 1,800 leased and owned facilities Delivery fleet: Over 120,000 package cars, vans, tractors, and motorcycles, including more than 13,000 alternative fuel and advanced technology vehicles UPS jet aircraft: Owned & finance leases – 289 Operating leases & charters – 296 |
Founded: May 5, 1971 in Little Rock, Arkansas Headquarters: Memphis, TN Website: FedEx.com Employees: More than 500,000 Service area: More than 220 countries and territories Aircraft: 697 Motorized vehicles: over 210,000 FedEx Office locations: 2,200 |
As you may know, there is no cut-and-dry answer to this question, because the cheapest way to ship a package depends on many factors, including distance, the weight of the package, shipping service, etc.
If you’re looking for the cheapest way to ship boxes to another state, the best approach is to find the most affordable service for shipping packages of specific weights, as shown below:
USPS Retail Ground and USPS First Class Package are the cheapest ways to ship a 1-pound package.
USPS Retail Ground and USPS Priority Mail are the cheapest options for shipping packages with weights of between 1-5 pounds.
UPS Ground and FedEx Ground are the cheapest options for sending 20 lb packages.
The cheapest way to ship a heavy package weighing 50 lbs is UPS Ground or FedEx Ground.
Whether you choose UPS or FedEx for your shipments, ShipSigma can help make sure you’re getting the best shipping rates possible. With over 300 years of combined experience with major shipping carriers, the staff at ShipSigma will handle all your contract analyses, rate negotiations, and refunds to ensure you’re always getting the best deal. We save our customers an average of 25.2% on shipping costs. Contact us today to get started.