FedEx vs. USPS vs. UPS — Compare Shipping Rates
by EasyPost
When it comes to shipping carriers, players in the ecommerce space today have no shortage of options. This surplus of options is a good thing, as diversifying your carrier network is key to a successful business.
Still, finding the best carriers is no easy task. From performance to features, there are several variables to consider, but one of shippers’ main concerns is “Which is cheaper—USPS, UPS, or FedEx?”
To find out, you’ll need to compare shipping rates of FedEx vs. USPS vs. UPS. This can seem daunting and time-consuming, and you might worry that you’ll become overwhelmed with the number of options available. However, rate comparison doesn’t have to be a chore! We’ll give you some practical steps to make it easier for you to compare shipping rates and carrier features.
1: Understand the key characteristics of each carrier
Let’s take a look at the unique offerings of FedEx vs. USPS vs. UPS.
USPS
USPS is the cheapest overall of shipping carriers, especially when it comes to ground shipping. Their trucks are running daily, so your customers will have quick and on-time local deliveries. One reason USPS shines? They have an enormous reach. Because they’re in charge of delivering all the mail in the U.S., they’ve perfected the art of delivering to urban and rural areas alike.
USPS specializes in lightweight packages—those under 20 pounds. If you’re shipping lightweight products, you’ll probably find that USPS offers the best bargains. For large or heavy shipments, you might be better off with UPS or FedEx.
USPS offers multiple different methods for shipping, including USPS Priority Mail. With USPS Priority Mail, you can save money by using flat-rate shipping. When you choose flat-rate shipping with USPS, the shipping rate stays the same regardless of package weight or shipping distance. You simply pay based on the size of box you need. To make things even better, USPS provides these boxes for free!
With EasyPost, you can access USPS Commercial Pricing for even lower shipping rates.
UPS
UPS is known for its reliability, with great delivery times and helpful customer service. While it can be more costly than alternatives like USPS, UPS is an excellent carrier if you want your packages delivered on time and intact.
UPS offers a variety of shipping methods, including international shipping, UPS Ground, 3-Day Select, and Next Day Air. This makes it easier to tailor your delivery time to your shipping needs.
When you sign up for a UPS account on EasyPost, you gain access to special UPS shipping, including discounts on UPS Ground shipping, 2nd Day Air and Next Day Air, and international services.
FedEx
FedEx is known for its fast delivery options, with great offerings for express and overnight shipping. They’re also a great option for shipping temperature-controlled items. Another attractive feature of FedEx is that they offer international shipping. Similarly to UPS, they provide a variety of shipping methods and delivery timelines, as well as a Small Business Rewards Program in which business owners can save up to 16% on select shipments.
Like UPS, FedEx tends to be more expensive than USPS. However, depending on your shipment type and customer expectations, this increased cost could be worth it.
Tip: Don’t forget about local and regional carriers
While this article is mainly focused on national carriers, we can’t move on without noting that regional and local carriers can also be great options.
Local and regional carriers are smaller shipping companies that operate within specific cities, states, or regions, rather than covering the entire country like UPS, FedEx, and USPS.
They can be a great alternative when you need faster delivery times, lower shipping costs, or more flexible service options within a particular area. Because they specialize in certain regions, they often provide better last-mile delivery performance and offer more personalized customer service. Another great perk? Fewer surcharges compared to national carriers.
You might benefit from using a local or regional carrier when shipping within a concentrated area, during peak seasons when major carriers are overwhelmed, or when looking for cost-effective solutions for lightweight and same-day deliveries.
2. Evaluate your needs
The carrier that you choose should ultimately reflect the specific needs of your business. For example, do you consistently ship heavy products over a short distance? Or maybe you consistently send lighter packages across longer distances to reach your customers.
Different shipping carriers are tailored to excel in different aspects of shipping; some are geared toward heavier, larger boxes while others are superior in shipping packages longer distances.
Once you have a firm grasp on the types of shipments stemming from your business, you’ll be able to choose a carrier mix accordingly.
Let’s review the best options for shipping various package types.
Small, lightweight packages
USPS offers the lowest rates for small, lightweight packages because they have an extensive delivery network.
Small, dense packages
The best way to ship small, dense packages is flat-rate shipping. Since package weight doesn’t come into play, flat-rate shipping is a great bargain when shipping heavy items (as long as they can fit into boxes of the correct dimensions). FedEx, USPS, and UPS all provide flat-rate shipping; you can learn more in this article.
Large, heavy packages
UPS and FedEx generally provide the most value when shipping large, heavy packages. In addition to having lower rates for large, heavy shipments, both carriers also have a higher weight limit than USPS—150 pounds vs. 70 pounds.
Be aware that you may still have to pay additional handling fees for heavy or oversized packages.
Packages with special transportation requirements
In addition to package weight and size, you’ll also want to consider the types of products you sell. Are your products valuable, fragile, or temperature-sensitive?
Items with special storage or handling requirements may need to be shipped quickly to avoid damage or spoilage.
For example, while packages containing clothing can easily be sent using standard shipping (which can take up to five business days), things like food or medications should probably be sent with a 2-day or overnight shipping service.
Since these faster shipping methods can get expensive quickly, it’s worth comparing rates across carriers to find which is most affordable for your business. USPS, UPS, and FedEx all offer quick delivery options, so it’s just a matter of finding what works best for your specific shipments.
3. Know your customer base
When comparing shipping rates, it’s important to consider the needs and wants of your target customers. This will help you to select the carrier that suits you and your customers best.
For example, if you know that your customers prefer a quick delivery option, you’ll want to compare shipping rates between carriers that provide a 2-day delivery service.
One thing to keep in mind is that many customers prioritize cost over speed. For non-urgent shipments, most people are willing to wait several days for their package if it means that shipping is cheap—or better yet, free. To appeal to these budget-conscious customers, look into each carrier’s standard shipping service.
If you don’t offer a low- or no-cost shipping option, you risk having higher shopping cart abandonment rates and lower customer satisfaction.
Of course, there will be times when speed needs to take precedence over cost. So what’s the fastest carrier? Conveniently, all of the carriers provide 2-day and overnight shipping options, though costs and delivery times vary. Consider looking into the following services:
- USPS Priority Mail Express: Next-day to 2-day delivery service by 6 p.m.
- UPS 2nd Day Air: 2-day delivery, with Saturday delivery available.
- FedEx 2Day: 2-day delivery by 8:00 p.m. to residences.
4. Evaluate rates
Before committing to a carrier, you’ll want to evaluate the current rate that each one offers. In comparing FedEx, USPS, and UPS, look for answers to the following questions:
- How much does each carrier charge and how do they compare to others?
- Who has the cheapest shipping?
- Are there price options for smaller or larger businesses?
- Do they offer savings for long-term contracts?
Decide which options are most cost-effective and make the most sense for you. Consider, also, the time of year. Shipping rates tend to increase during the holiday season, so the rate you see may not be the rate you’ll pay next quarter.
By far the easiest way to compare shipping rates is to use a shipping API to do it automatically. These platforms automatically connect with carriers and pull rates in real-time so you can find the best balance of speed and cost for your shipments—pretty cool, right?
If you prefer to do things the manual way, we’ve linked to the major carriers’ price calculators and pricing sheets for reference. (Just keep in mind that you always have the option to negotiate lower rates; see step 6.)
Price calculators:
Pricing sheets (2025):
Shipping rates are constantly changing, so to avoid incorrect estimates, it’s important to check back frequently to make sure you’re up-to-date on what the current rates are.
5. Evaluate performance and delivery speed
Saving money won’t do you any good if you have to sacrifice speed or reliability. Fortunately, the carriers discussed in this article have had years to perfect their delivery strategies, and they can generally be trusted to perform well. Still, it doesn’t hurt to dig into their performance. If you see problematic patterns, you can either switch to another carrier or address the issue with your account representative.
Based on your experience or the research you’ve done, consider how each carrier has performed in the past.
- Did they live up to their expectations and promises?
- Is there any reason for you to believe that their performance will change in the future?
- How do they perform during the holiday season?
When evaluating performance, remember that swift delivery is not the only metric to measure. Make sure the carrier doesn’t inhibit operations that may be critical to your business. For instance, some of your customers want fast delivery, while others want the option to deliver the package to a locker.
Keep in mind what is important to you and your customers, and evaluate performance and features accordingly. Performing a critical evaluation of a carrier will help you determine if their rates are worth it for your business.
6. Always negotiate
After reviewing the rates and performance of each carrier, the final step in the process is negotiation.
The rate you’re offered in the beginning does not have to be the rate you pay. If there is any perceived disconnect between the carrier’s rate and their performance, bring this to their attention. If you can find better performance for the same price elsewhere, let the carrier know. This could lead to a temporary or permanent change in your rate.
If you ship high volumes, you also have a better chance of influencing your rate, as your business could mean a lot for the carrier. The goal here is not to take advantage of your carrier, but simply to make sure all is fair and reasonable.
Unsure where to begin? Following the three tips below will help your rate negotiations go smoothly and successfully:
- Bring your shipping data. Before negotiating, analyze your shipping volume, average package weight, delivery zones, and service types. Carriers are more likely to offer better rates if you can demonstrate consistent volume or a specific need that aligns with their network. Highlighting trends—like frequent shipments to a particular region—can help you negotiate targeted discounts.
- Leverage competition. Don’t rely on just one carrier. Get quotes from multiple providers, including national, regional, and local carriers. Even if you prefer a specific carrier, showing that you have other options can give you leverage in negotiations.
- Negotiate beyond base rates. Discounts on base shipping rates are important, but you should also look at surcharges and accessorial fees (e.g., residential delivery, fuel surcharges). Many of these extra costs can add up, but carriers may be willing to reduce or waive them, especially if you commit to a certain volume.
7. Compare shipping rates automatically with a shipping API
Comparing shipping rates is necessary to keep delivery costs low, but doing the math on your own isn’t the most efficient method. Fortunately, you can automate rate comparison with shipping technology.
For example, take the EasyPost API. The Shipping API and rate comparison tools allow you to quickly compare shipping rates and choose the best carriers and delivery methods, optimizing for speed and price.
Once you get set up, you’ll be able to automatically find the best possible rates from over 100 carriers—including specially discounted rates that EasyPost has negotiated on behalf of our customers.
Make an account with EasyPost to start optimizing your shipping today.
Set your business up for success with reliable, affordable carriers
Having a diverse and healthy group of business partners and vendors is critical for the success of any business. Remember that you always have options and you can (and should) choose more than one shipping carrier for your needs.
While it may seem like a long and tedious process, choosing the right mix of carriers is essential in curating a positive customer experience. Good luck—you’ve got this!