Shipping Rates & Contract Negotiation
At ShipSigma we manage, analyze, and optimize over $1Billion in parcel spend to provide you with a deep understanding of the excess of fees your contract has built in and where savings exist. Using our industry-leading cost modeling software, we’ll provide you with a Shipping Savings Guarantee before you negotiate. Once negotiation begins, we'll provide you with a market-best carrier network strategy, contract management & compliance services, surcharge mitigation, and ongoing analysis and optimization opportunities.
We could not say enough good things about our relationship with ShipSigma. Beyond the initial savings, they continue to find us new angles for savings, set up dashboards specific to our needs, and meet with us quarterly to go through reporting/review savings/new opportunities. ShipSigma has been more than just a service for us, they have been a continuous partner as we navigate the difficulties of controlling our freight costs and holding the vendors accountable.
Tyler B. Vice President of Finance, Leading Global Manufacturer
4 hours. It took less than 4 hours of my time for my company to see half a million in annual savings. No headaches, no feet-dragging negotiations, no confusing documents. It was so easy.
Todd M. Vice President, Food Manufacturer and Distributor
The insights and analytics, ShipSigma provided before and after negotiating our carrier agreements, make it clear we have a long-term partner who is aligned with our company values. The cost modeling and rate simulation let us know the exact savings we would see, down to the last cent. After running our historical data, ShipSigma was able to find us almost 28% in annual shipping savings with our same carrier.
Jonica H. Controller, Market Leading Wine Distributor
Our team managed billions of dollars of various category spend. To have ShipSigma guarantee a savings and then fully execute so that we’re realizing increased EBITA within 60 days allows us to focus on other strategic opportunities.
Randy H. Chief Procurement Officer, Leading Provider of Pork Products
We thought we had the best rates. We were told we had the best rates. ShipSigma got us better rates. They found us nearly 25% in savings and helped us renegotiate our contract with our carrier. It was just so easy.
Brad M. Chief Operations Officer, Clothing Retailer
The parcel invoice audit was a lifesaver for us. The team at ShipSigma monitored the weekly audit and noticed that instead of shipping air, over 60% of our packages could have traveled ground with no delay in arrival. They saved us more money than we had ever saved in our manual audit process.
Julie F. Chief Financial Officer, Industry Leading Retailer
What Is the Cheapest Way to Mail a Small Package?
As a frequent small package shipper, saving money on shipping costs can help you direct resources to other parts of your business. This blog will list some of the cheapest small package services each carrier offers, their rates, and tips to ensure you always get the best prices.
What Is the Cheapest Way to Ship a Small Package?
The truth is that there is no one-size-fits-all answer to this question since the cost to ship a small package depends on numerous factors, such as:
-The contents of the package - Perishable goods or hazardous materials, for instance, require specialized care or transportation conditions. Such special packages may be charged higher rates than standard packages even if they weigh the same and are shipped with the same service.
-The size of the package - There are some cases where a package is small in terms of weight, but it is large or irregularly shaped. Such cases call for special pricing like dimensional weight pricing or ‘large package’ surcharges.
-The level of service required (such as tracking or insurance) - Some items like prescription medication or expensive jewelry may require specialized services like additional tracking and insurance, which affects the shipping cost and shipping service you will use.
-The carrier being used - Different carriers have different rates. For example, one carrier’s ground shipping may be more costly than another carrier’s expedited shipping.
Each carrier has different service levels, whose cost depends on delivery speed, among other factors. Let’s look at the cheapest small package shipping methods for UPS, FedEx, and USPS.
Cheapest Way to Ship a Small Package via UPS
The cheapest way to ship a small package with UPS is using their ground shipping service, UPS Ground.
UPS Ground is a shipping service provided by UPS that delivers packages via ground networks (road and rail). It is ideal for packages that are not time-sensitive and has cheap shipping rates for small packages.
Coverage: UPS Ground delivers to businesses and homes in all 50 states and Puerto Rico
Delivery Time: UPS Ground offers day-definite delivery within one to five business days, including Saturday delivery standard to most residential addresses. Saturday deliveries to commercial addresses are charged a $4 per-package fee unless the customer enrolls in commercial delivery services with a scheduled Saturday pickup.
Size and Weight Limit: UPS Ground packages can weigh up to 150 lbs. and measure up to 108” in length.
UPS Ground Small Package Rates
Weight Range |
Rate Range (nearest destination to furthest destination) |
1–10 lbs |
$10.10–$112.33 |
11–20 lbs |
$14.10–$166.06 |
21–30 lbs |
$16.69–$219.32 |
31–40 lbs |
$20.19–$265.35 |
41–50 lbs |
$23.03–$316.11 |
51–60 lbs |
$24.79–$366.36 |
61–70 lbs |
$26.03–$422.73 |
Another cost-effective way to send small packages with UPS is through their flat-rate shipping, known as UPS Simple Rate. Below are the UPS Simple Rate rates for sending shipments between the 48 contiguous states:
UPS Service |
||||
UPS Simple Rate Size |
UPS Ground |
UPS 3-Day Select |
UPS 2nd Day Air |
UPS Next Day Air Saver |
Extra Small |
$10.20–$10.90 |
$17.70–$17.80 |
$20.05–$24.85 |
$29.40–$37.35 |
Small |
$13.35–$13.45 |
$21.60 |
$23.85–$28.60 |
$37.45–$45.00 |
Medium |
$16.05–$18.15 |
$29.75–$30.60 |
$30.55–$39.15 |
$42.00–$53.65 |
Large |
$21.05–$24.55 |
$41.05–$41.45 |
$54.45–$58.30 |
$63.00–$67.70 |
Extra Large |
$26.05–$29.20 |
$51.35–$51.50 |
$70.60–$71.70 |
$81.40–$82.80 |
Cheapest Way to Ship a Small Package via FedEx
FedEx’s cheapest services for shipping small packages are FedEx Ground and FedEx Home Delivery.
What is the difference between FedEx Ground and FedEx Home Delivery?
FedEx Ground delivers packages to businesses or commercial addresses Monday through Friday, while FedEx Home Delivery, which is part of the FedEx Ground network, delivers packages to residences every day of the week.
Coverage: FedEx Ground and FedEx Home Delivery deliver packages to all 50 states.
Delivery Time: Shipments in or between the 48 contiguous states are delivered within 1 to 5 business days. Delivery to Alaska and Hawaii is done within 3 to 7 business days.
Size and Weight Limit: With FedEx Ground and FedEx Home Delivery, you can ship packages up to 150 lbs (68kg) in weight, up to 108" (274cm) in length, and 165" (419cm) in length plus girth (L+2W+2H).
FedEx Ground and FedEx Home Delivery Small Package Rates
Weight Range |
Rate Range (nearest destination to furthest destination) |
1–10 lbs |
$10.10–$22.40 |
11–20 lbs |
$14.17–$36.17 |
21–30 lbs |
$16.80–$51.83 |
31–40 lbs |
$20.29–$63.95 |
41–50 lbs |
$23.15–$74.72 |
51–60 lbs |
$24.85–$81.11 |
61–70 lbs |
$26.09–$85.57 |
As with UPS, FedEx also offers flat-rate shipping, which can be a cost-effective way of sending small packages. FedEx flat-rate shipping service is known as FedEx One Rate, and rates are as follows:
Delivery Commitment |
3rd day by 4:30 p.m. |
2nd day by 4:30 p.m. |
2nd day by 10:30 a.m. |
Next day by 3 p.m. |
Next day by 10:30 a.m. |
Next day by 8 or 8:30 a.m. |
Service |
FedEx Express Saver |
FedEx 2Day |
FedEx 2Day A.M. |
FedEx Standard Overnight |
FedEx Priority Overnight |
FedEx First Overnight |
Packaging type |
||||||
FedEx Envelope |
$11.10–$13.95 |
$22.00–$26.75 |
$30.10–$44.95 |
$32.95–$47.55 |
$41.20–$68.30 |
$95.20–$122.30 |
FedEx Pak |
$11.45–$16.40 |
$27.40–$32.65 |
$35.00–$53.10 |
$42.05–$78.15 |
$50.30–$110.35 |
$104.30–$164.35 |
FedEx Small Box |
$12.40–$16.95 |
$27.40–$33.10 |
$36.50–$61.35 |
$45.20–$87.10 |
$51.25–$123.50 |
$105.25–$177.50 |
FedEx Medium Box |
$16.50–$21.25 |
$28.90–$48.70 |
$37.25–$77.50 |
$49.00–$90.55 |
$59.10–$139.70 |
$113.10–$193.70 |
FedEx Large Box |
$24.95–$29.60 |
$33.75–$61.05 |
$38.80–$97.10 |
$59.10–$125.55 |
$65.85–$160.85 |
$119.85–$214.85 |
FedEx Extra Large Box |
$39.10–$54.45 |
$47.80–$94.60 |
$48.60–$140.45 |
$67.10–$174.45 |
$78.30–$223.35 |
$132.30–$277.35 |
FedEx Tube |
$39.10–$54.45 |
$47.80–$94.60 |
$48.60–$140.45 |
$67.10–$174.45 |
$78.30–$223.35 |
$132.30–$277.35 |
Cheapest Way to Ship a Small Package via USPS
As with UPS and FedEx, ground shipping is the cheapest shipping option for USPS. However, USPS ground shipping is known to be slower than UPS and FedEx ground.
Coverage: USPS Retail Ground delivers packages to all U.S. addresses, including PO boxes and military addresses. It also offers Saturday and residential delivery at no extra cost.
Delivery Time: Within 2 to 5 business days.
Size and Weight Limit: Packages should weigh no more than 70 lbs. and measure no more than 130 inches in combined length and distance around the thickest part.
USPS Retail Ground Small Package Rates
Weight Range |
Rate Range (nearest destination to furthest destination) |
1–10 lbs |
$8.95–$40.90 |
11–20 lbs |
$15.20–$68.60 |
21–30 lbs |
$23.00–$95.60 |
31–40 lbs |
$34.05–113.65 |
41–50 lbs |
$37.95–$127.85 |
51–60 lbs |
$40.85–$141.20 |
61–70 lbs |
$47.35–$161.75 |
You can also use USPS flat rate services for an affordable way to send your small packages. Pricing is as shown below:
USPS Service |
||
Packaging |
Priority Mail Express |
Priority Mail |
Flat Rate Envelope |
$28.75 |
$9.65 |
Legal Flat Rate Envelope |
$28.95 |
$9.95 |
Padded Flat Rate Envelope1 |
$29.45 |
$10.40 |
Small Flat Rate Box |
- |
$10.20 |
Medium Flat Rate Boxes |
- |
$17.10 |
Large Flat Rate Boxes |
- |
$22.80 |
APO/FPO/DPO Flat Rate Box |
- |
$21.20 |
Is It Cheaper to Use a Flat Rate Box or Your Own Box?
It all depends. Follow these tips to make sure you’re using the right kind of box (and the most cost-effective one) at the right time:
- If you’re shipping small, heavy items, go for a flat rate box since you will avoid being charged based on the weight of your shipment — you will pay the same price no matter how heavy the item is.
- On the other hand, if you ship small, lightweight goods, it may be cheaper to use your own box. This is because the flat rate may be higher for very lightweight items than what you would pay with weight-based pricing.
- Sometimes carriers reject shippers' boxes when they don’t meet their packaging standards. If you can’t find carrier-approved boxes, use flat-rate boxes like USPS flat-rate boxes to prevent making losses in case your boxes are rejected.
Is It Cheaper to Send a Small Package UPS or USPS?
In general, USPS is often cheaper for small, lightweight packages going shorter distances, while UPS may be more cost-effective for heavier or larger packages traveling longer distances or requiring faster delivery times.
Below are UPS and USPS rates for their different services.
UPS Rates
UPS Service |
|||||||
Weight |
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 |
1–10 lbs |
$65.00–$241.38 |
$35.00–$220.81 |
$31.71–$166.88 |
$23.64–$125.26 |
$21.64–$122.21 |
$13.66–$81.74 |
$10.10–$112.33 |
11–20 lbs |
$87.74–$336.20 |
$57.74–$334.89 |
$51.04–$244.25 |
$34.07–$204.68 |
$30.87–$185.36 |
$24.10–$131.10 |
$14.10–$166.06 |
21–30 lbs |
$104.81–$407.52 |
$74.81–$401.18 |
$68.28–$323.01 |
$52.04–$280.59 |
$46.53–$259.15 |
$33.51–$180.11 |
$16.69–$219.32 |
31–40 lbs |
$122.69–$489.82 |
$92.69–$473.74 |
$85.35–$391.28 |
$68.58–$368.28 |
$58.69–$335.80 |
$44.84–$226.57 |
$20.19–$265.35 |
41–50 lbs |
$145.49–$572.75 |
$115.49–$553.61 |
$104.26–$468.37 |
$85.90–$435.70 |
$76.65–$370.88 |
$54.94–$269.82 |
$23.03–$316.11 |
51–60 lbs |
$173.79–$698.48 |
$143.79–$681.86 |
$123.26–$571.10 |
$104.82–$511.04 |
$86.54–$440.32 |
$65.10–$315.87 |
$24.79–$366.36 |
61–70 lbs |
$200.53–$782.36 |
$170.53–$768.24 |
$144.21–$656.79 |
$116.75–$597.70 |
$101.07–$495.98 |
$73.06–$374.64 |
$26.03–$422.73 |
USPS Rates
USPS Service |
|||
Weight |
Priority Mail Express |
Priority Mail |
USPS Retail Ground |
1–10 lbs |
$29.20–$158.55 |
$9.35–$104.50 |
$8.95–$40.90 |
11–20 lbs |
$49.05–$221.95 |
$15.95–$177.55 |
$15.20–$68.60 |
21–30 lbs |
$71.95–$308.15 |
$24.00–$231.75 |
$23.00–$95.60 |
31–40 lbs |
$98.55–$398.25 |
$34.25–$277.40 |
$34.05–113.65 |
41–50 lbs |
$125.35–$494.15 |
$39.65–$314.90 |
$37.95–$127.85 |
51–60 lbs |
$151.70–$593.30 |
$43.15–$350.55 |
$40.85–$141.20 |
61–70 lbs |
$179.85–$688.20 |
$48.45–$401.35 |
$47.35–$161.75 |
As evident in the rates above, USPS is cheaper than UPS for shipping small packages. However, in some cases, USPS has higher starting rates than UPS, although, on the higher end, UPS is still more expensive.
For example, shipping a package weighing 21–30 lbs via USPS retail ground will cost between $23.00 and $95.60. Shipping the same package via UPS Ground will cost between $16.69 and $219.32. USPS has a higher starting cost, but UPS gets more expensive as the shipping distance increases.
How ShipSigma Can Help
Looking to lower your shipping rates? Let ShipSigma do the heavy lifting!
Our AI-powered contract analysis software, combined with our team’s 250+ years of shipping industry experience, will have you enjoying low shipping rates in record time. Reach out to us today, and let us cut your shipping costs down.
FAQ
A parcel typically refers to a relatively lightweight small package that is usually small enough to be easily handled by one person. A parcel can range in weight from a few ounces to around 70 pounds. Parcel shipping is often used for sending personal mail, business-to-business deliveries, and direct-to-consumer shipments.
On the other hand, freight refers to a larger consignment of goods transported using special means such as freight trucks, ships, or planes. Freight shipments typically consist of multiple packages bundled together on pallets, crates, or other large shipping containers.
USPS Retail Ground and USPS First Class Package are the cheapest ways to ship a 1-pound package.
UPS Ground and FedEx Ground are the cheapest options for sending 20 lb packages.
USPS Retail Ground and USPS Priority Mail are the cheapest options for shipping packages with weights of between 1-5 pounds.
Amazon partnered carriers are authorized by Amazon to transport packages on behalf of the company, while other carriers are not affiliated with Amazon in any way.