Is It Cheaper To Ship With UPS Or USPS?
March 23, 2023 •Chase Flashman
UPS and USPS are two of the most popular couriers used to ship small parcels. Let's compare the average shipping costs of the two.
How Are Shipping Rates Determined For UPS And USPS?
Shipping rates for UPS and USPS are determined based on various factors such as the package's weight, dimensions, destination, shipping speed, and any additional services required.
Learning the nuances of UPS and USPS pricing can help you pick the suitable carrier for your needs. Let's begin with a deep dive into the criteria USPS uses to determine its rate structure.
USPS Shipping Rates
How USPS Determines Shipping Rates
Pricing of USPS services depends on the following factors: the weight of the package, the delivery time, the kind of package, and how far the item is going (the destination zone).
Size and Weight
Rates for USPS shipping services increase as the weight of the package increases, or the shipping destination moves further, as illustrated in the example below:
USPS Priority Mail Pricing By Weight
|
Weight Not Over (lbs.) |
Zone |
|||
|
1 |
2 |
3 |
4 |
|
|
1 |
$9.35 |
$9.55 |
$9.85 |
$10.20 |
|
2 |
$9.80 |
$10.05 |
$10.55 |
$11.45 |
|
3 |
$10.45 |
$10.75 |
$11.35 |
$12.55 |
Note: Actual Weight Vs. Dimensional (DIM) Weight
The dimensional (volumetric) weight system is a pricing technique that allows shipping companies to charge fees based on package size rather than actual weight. With limited space on cargo trucks, DIM weight pricing helps carriers to mitigate losses from shipping large lightweight packages.
Shipping Speed / Delivery Time
Generally, the quicker the delivery, the more costly the shipping. For example, Priority Mail Express is USPS's fastest domestic service and therefore costs more than other services like Priority Mail or First Class Mail.
USPS Shipping Rates By Weight Chart 2023
Starting Rates (Minimum Charges) for USPS Retail Shipping Services
|
WEIGHT |
USPS Service |
||||
|
Priority Mail Express |
Priority Mail |
First-Class Mail & Package Service |
Media Mail & Library Mail - Large Envelopes & Parcels |
USPS Retail Ground |
|
|
0.5 lb or less |
$28.75 |
- |
- |
- |
- |
|
1 lb or less |
$9.35 |
$4.75 - Retail Parcels $0.63 - Letters (Stamped) $0.60 - Letters (Metered) $1.26 - Large Envelopes (Flats) $0.48 - Postcards $0.189 - EDDM—Retail (Flats up to 3.3 oz.) $0.750 - Semipostal Stamps $4.15 - Keys and Identification Devices |
$3.65 (Media Mail) $3.47 (Library Mail) |
$8.95 $8.30 - Limited Overland Routes (LOR) |
|
(For full price-by-weight and commercial pricing tables, visit USPS Services Price List.)
UPS Shipping Rates
How UPS Determines Shipping Rates
UPS provides a variety of domestic and international shipping services, which are housed under these categories: Nationwide Shipping, Freight Shipping, International Shipping, and Flat-Rate Shipping. This article will focus on Nationwide (Domestic) and Flat Rate Shipping.
UPS, like USPS, factors package weight, zones, and delivery times when setting shipping rates.
Ultimately, what you pay for your UPS shipment depends on the rate package you choose. Below are the rate packages that UPS offers:
Daily Rates - These rates will apply if you have a scheduled UPS pickup or have a UPS account that gives you access to daily rates.
Retail Rates - You should opt for retail rates if you do not have an account, do not have a scheduled pickup, or you're shipping from a UPS retail store.
Flat Rate Shipping Within the U.S - With UPS Simple Rate, you choose from the five flat packaging rates and the four shipping speeds.
Does UPS Charge By Weight Or Size?
UPS calculates shipping rates based on the total actual weight or the total dimensional weight of all packages in a shipment, whichever is greater.
UPS Shipping Rates By Weight Chart 2023
Below is a table showing starting rates for different UPS services. These are the lowest prices you can expect to pay for packages that fall under the smallest weight class.
Minimum Shipping Rates For UPS Domestic Shipping Services
|
UPS Service |
|||||||
|
UPS Next Day Air Early |
UPS Next Day Air |
UPS Next Day Air Saver |
UPS 2nd Day Air A.M. |
UPS 2nd Day Air |
UPS 3-Day Select |
UPS Ground |
|
|
Letter* Minimum Charge |
$60.56 (Daily Rate) $58.61 (Retail Rate) |
$30.56 (Daily Rate) $28.61 (Retail Rate) |
$29.85 (Daily Rate) $28.04 (Retail Rate) |
$23.64 (Daily Rate) $22.61 (Retail Rate) |
$22.68 (Daily Rate) $21.38 (Retail Rate) |
- |
- |
|
Package Minimum Charge |
$67.44 (Daily Rate) $65.00 (Retail Rate) |
$37.44 (Daily Rate) $35.00 (Retail Rate) |
$34.22 (Daily Rate) $31.71 (Retail Rate) |
$24.95 (Daily Rate) $23.64 (Retail Rate) |
$22.82 (Daily Rate) $21.64 (Retail Rate) |
$14.59 (Daily Rate) $13.66 (Retail Rate) |
$10.10 (Daily Rate) $11.76 (Retail Rate) |
(* The Letter rate applies only to documents, correspondence, and electronic media shipments that do not exceed eight ounces sent in a UPS Express Envelope.)
Packages Over 150 pounds:
Packages weighing more than 150 pounds are charged on a price-per-pound basis.
Price-Per-Pound For UPS Packages Over 150 Lbs
|
PRICE PER POUND |
|||||||
|
UPS Next Day Air Early* |
UPS Next Day Air |
UPS Next Day Air Saver |
UPS 2nd Day Air A.M. |
UPS 2nd Day Air |
UPS 3 Day Select |
UPS Ground |
|
|
Package over 150 pounds |
$2.68 - $11.42 (Daily Rate) $2.77 - $10.31 (Retail Rate) |
$2.68 - $11.67 (Daily Rate) $2.77 - $10.56 (Retail Rate) |
$2.63 - $9.93 (Daily Rate) $2.53 - $8.72 (Retail Rate) |
$2.07 - $8.74 (Daily Rate) $1.85 - $7.52 (Retail Rate) |
$1.72 - $7.60 (Daily Rate) $1.64 - $7.21 (Retail Rate) |
$1.23 - $5.52 (Daily Rate) $1.23 - $4.66 (Retail Rate) |
$0.69 - $3.78 (Daily Rate) $1.17 - 5.71 (Retail Rate) |
(*For UPS Next Day Air Early packages with a weight of more than 150 pounds, multiply the weight by the price per pound and add $30.00.)
UPS Flat-Rate Shipping (UPS Simple Rate)
UPS Simple Rate is a UPS package that offers flat-rate pricing for shipments between the U.S. 50 states.
Prices for UPS Simple Rate Shipments Between the 48 Contiguous States:
|
Size |
UPS Ground |
UPS 3 Day Select |
UPS 2nd Day Air |
UPS Next Day Air Saver |
|
Extra Small |
$10.20 (Daily Rate) $10.90 (Retail Rate) |
$17.70 (Daily Rate) $17.80 (Retail Rate) |
$20.05 (Daily Rate) $24.85 (Retail Rate) |
$29.40 (Daily Rate) $37.35 (Retail Rate) |
|
Small |
$13.35 (Daily Rate) $13.45 (Retail Rate) |
$21.60 (Daily Rate) $21.60 (Retail Rate) |
$23.85 (Daily Rate) $28.60 (Retail Rate) |
$37.45 (Daily Rate) $45.00 (Retail Rate) |
|
Medium |
$16.05 (Daily Rate) $18.15 (Retail Rate) |
$30.60 (Daily Rate) $29.75 (Retail Rate) |
$30.55 (Daily Rate) $39.15 (Retail Rate) |
$42.00 (Daily Rate) $53.65 (Retail Rate) |
|
Large |
$21.05 (Daily Rate) $24.55 (Retail Rate) |
$41.05 (Daily Rate) $41.45 (Retail Rate) |
$54.45 (Daily Rate) $58.30 (Retail Rate) |
$63.00 (Daily Rate) $67.70 (Retail Rate) |
|
Extra Large |
$26.05 (Daily Rate) $29.20 (Retail Rate) |
$51.05 (Daily Rate) $51.35 (Retail Rate) |
$70.60 (Daily Rate) $71.70 (Retail Rate) |
$81.40 (Daily Rate) $82.80 (Retail Rate) |
(Visit the UPS Shipping Rates page for more details on shipping costs to Metro and Remote Alaska and Hawaii.)
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Frequently Asked Questions About UPS and USPS Shipping Rates
Does USPS use dimensional weight pricing?
USPS uses a dimensional (volumetric) weight system that charges fees based on package size rather than actual weight when the two differ. This pricing technique helps carriers offset losses from shipping large, lightweight packages that occupy space disproportionate to their mass. When dimensional weight exceeds actual weight, the higher figure determines the rate.
Which carrier costs less for packages weighing 1 pound or less?
USPS First-Class Package Service starts at $4.75 for retail parcels up to 1 pound, while UPS Ground has a minimum package charge of $10.10 at daily rates and $11.76 at retail rates. USPS Priority Mail at $9.35 for Zone 1 is also below the UPS Ground starting point. For packages in the lightest weight class, USPS consistently offers lower starting rates than UPS.
What is UPS Simple Rate?
UPS Simple Rate is a flat-rate pricing program for shipments between the 50 U.S. states, where cost is determined by package size (Extra Small through Extra Large) and shipping speed rather than package weight. Ground rates start at $10.20 (daily) for an Extra Small package and rise to $26.05 (daily) for an Extra Large package. Shippers with a UPS account access daily rates; those without one pay retail rates.
What is the difference between UPS daily rates and retail rates?
UPS daily rates apply to shippers who have a UPS account or a scheduled pickup arrangement, while retail rates apply to those shipping from a UPS store without an account. Daily rates are lower: UPS Ground charges $10.10 per package at daily rates versus $11.76 at retail rates for the same package minimum. The rate type is determined by the shipper's account relationship with UPS, not by package characteristics.
How does destination zone affect UPS and USPS shipping costs?
Both UPS and USPS use zone-based pricing where rates increase as packages travel to more distant destinations. For USPS Priority Mail, a 1-pound package costs $9.35 for Zone 1 and rises to $10.20 for Zone 4. UPS applies the same zone-based logic across all its domestic service levels, factoring destination zones alongside package weight and delivery speed.