FedEx Vs. USPS - Which Shipping Company Should You Use For Your Online Store?

The rise in online transactions increased in the logistics industry. Several service providers provide shipping services. Among them, two service providers, FedEx and USPS, are excellent in their service area. Even though both provide outstanding services, there are some differences between FedEx and USPS.

FedEx is a multinational courier company, while USPS is a U.S. Government agency that runs independently but is governed by the U.S. government. As an eCommerce vendor, an awareness of the difference between FedEx vs. USPS is a must. Any ecommerce vendor will have a common query about the choice of the shipping company. Some factors have to be considered before choosing a shipping company.

Speed

FedEx has a specialization in providing overnight delivery services, and its tracking system is excellent. Hence, it can be opted to ship large domestic and international shipments. USPS (United States Postal Services when expanded) is famous for its postal services. 

USPS also sends mails and packages domestically and internationally. The material is shipped from one location to another based on the requirement. There are three-speed limits: expected, fast delivery, and express delivery. Each service provider creates its strategy around these speed limits to increase its revenues.

When speed is concerned, an eCommerce vendor is always confused in deciding "is FedEx faster than USPS" or "is USPS faster than FedEx." To judge the speed of both the service providers, a focus on their service options is necessary.

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Related: How Late Does USPS Deliver? A Complete Guide

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FedEx Service Options 

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Ground/Home Delivery: In this option, the delivery of the parcel takes place within one to seven business days.

FedEx Same-Day: In this option, FedEx tries to provide door-to-door delivery on the same day within a few hours. This service is available 24 *7 and is applicable only in the U.S.

FedEx 2-Day: In this option, the parcel delivery is done within 2 days. This service depends on the distance between the pickup and destination and is primarily applicable only in areas belonging to the U.S.

FedEx Express Saver: In this option, the delivery of the parcel takes place within 3 business days.

FedEx First Overnight: In this option, FedEx ships the parcels overnight and deliver them the next business day.

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Related: How To Slash Your Shipping Costs With FedEx One Rate

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USPS Service Options

Priority Mail Express: This is the most demanded option as the mail is shipped overnight. It is the fastest delivery option as the USPS hours incurred in material delivery are less. This service is available 7 days a week.

Priority Mail: These are delivered within 3 business days, and parcels within the weight limit of 70 lbs. can be shipped through this option.

First Class Mail: Envelopes or small packages within the 13 lbs weight limit can be mailed through this option within 3 business days.

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Related: USPS Flat Rate Boxes & Pricing: eCommerce Businesses

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Retail Ground: In this option, parcels that are not time-bounded and contain delicate items are shipped.

Media Mail: This option is mainly meant for shipping media and educational audio and video files. The parcels should be within the weight limit of 70 lb. These kinds of packages are delivered within two to eight business days.

When the service options of both the service providers are compared, it is clear that delivery through USPS Priority Mail is faster than FedEx Home or Ground delivery as USPS delivers within 1.79 days on an average compared to 2.21 days for FedEx.

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Related: What Are The USPS Shipping Zones?

Parcel Weight

FedEx strictly considers parcels within the weight limit of 150 lb. In comparison, USPS provides excellent services in delivering small packages within the weight limit of 0-2 lb. USPS proves to be the ideal choice for small businesses or start-ups as it is very economical to ship small parcels through USPS. However, opting for FedEx in the case of significant properties is a good choice.

Cost

The cost of the shipping charges depends on the distance and the parcel's weight. The price of shipping USPS ground mail starts from $ 7.01, while Fed Ex costs start from $ 8.76. 

In the case of the 2-day express option, shipping starts from $ 3.01 in USPS and $ 17.82 in FedEx. The charges for overnight shipment in USPS start from $22.75 and $29.05 in the case of FedEx.

When a parcel below 2 lb has to be delivered, USPS is the best choice as it is cost-effective, while in the case of packages above 2 lb, and where fast delivery is required, FedEx is the best option.  

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Related: What is FedEx Ground Economy (FedEx Smartpost) For Businesses?

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Insurance

Accidents may occur during the shipping of the material. This compensates for the loss due to unknown or unavoidable accidents; materials are insured before being shipped. USPS offers insurance on only selective options like priority mail and express mail options.

Free insurance is provided by FedEx for material up to $100, whereas USPS offers an accessible insurance facility for material value up to $ 50. FedEx offers better insurance facilities when compared to USPS. USPS does not provide any insurance facility in case of Retail ground, first-class mail, and media mail options.

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Pickup And Drop-Off Locations

USPS has several pickup and drop-off points compared to FedEx when the number of pickup and drop-off locations is analyzed. FedEx offers a pickup facility only when demanded by the customer.

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Related: How to Get Free Shipping Supplies from USPS, UPS, FedEx, and DHL

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Tracking

The tracking facility provided by FedEx is excellent when compared to USPS. The customer is given access to track the status of delivery. However, even customer support is available to help the customers solve their queries regarding the delivery status.

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Related: Compare USPS Priority Mail to Priority Mail Express

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Discounts

Although this factor is not disclosed openly, the service providers provide discount facilities to their customers who have a long business relationship with them and frequently utilize their services and ship large parcels.

Enjoying the discount facility depends on the negotiation skills of the customer. However, the service providers generally provide discounts or on specific occasions to improve their business networks. Typically, FedEx offers discounts to its reliable customers.

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Recommended: Difference between FedEx, UPS, and USPS