What is the Cheapest Shipping Option: FedEx, UPS or USPS?

Do you have a small business with an eCommerce store? Or if you regularly send packages, do you wonder about the cheapest way to ship a package?

UPS, FedEx, and USPS (United States Postal Service) are the most popular shipping methods. I’ve used all three at various times.

Which company I choose depends on a variety of factors.

In this article, we’ll discuss the pros and cons of each shipping giant, including information on pricing and services, and why one might be better for you than another.

The information here will give you some food for thought regarding which shipping option is best for you and your needs.

Table of contents

What is The Cheapest Way To Ship a Package?

USPS is the cheapest way to ship a package in most cases. It is the most affordable option for anything 2 pounds and under, especially if you want to ship clothing.

For packages over 2 pounds, UPS and FedEx can have competitive pricing with USPS. Below, we show an example package and how USPS is the clear winner.

Cheapest Shipping Services

You’ll find that prices will vary depending on your shipping company.

Here’s a rundown of some basic shipping costs with each of the four biggest shipping companies.

For each scenario, I calculated the shipping of a 2-pound box from Minneapolis to Phoenix. I used those two cities to get a cross-country price scenario.

I’ll share important information you may find necessary as well.

FedEx

According to FedEx, several factors determine the shipping cost. Most shipping companies focus on the ” big three “: dimensional weight, package weight, and delivery time.

FedEx’s website has a shipping estimator that can help you determine potential shipping costs. However, it’s important to note that this is an “estimator” only. Actual shipping costs may vary. FedEx also provides free shipping boxes.

FedEx has three options for overnight delivery:

First overnight
Priority overnight
Standard overnight

The first overnight arrives in the early morning hours. Priority overnight packages typically arrive by noon. Standard overnight packages arrive by the end of the day, which could be as late as 8 p.m.

Here is the estimated shipping cost for each one, as well as for the two-day and three-day options.

First Overnight	Priority ON	Standard ON	Two-day AM	Two-day	Three Day
$155.29	$119.18	$116.93	$64.59	$57.21	$47.10

These prices apply whether I ship using a small box, medium box, large box, extra large box, or envelope.

However, look at what happens when I use a tube to send my two-pound package from Minneapolis to Phoenix. Shipping prices go up dramatically.

First Overnight	Priority ON	Standard ON	Two-day AM	Two-day	Three Day
$228.91	$192.80	$189.10	$140.94	$116.98	$87.42

Ouch!

Note to self: Avoid using tube packaging when shipping, if possible; at least with FedEx.

As you can see, prices are much, much higher. Now, let’s move on to another popular shipping company.

UPS

The UPS (United Parcel Service) website also has a shipping estimator for potential customers.

Here are the results of its estimate for my same 2-pound package going from Minneapolis to Phoenix.

Next Day AM	Next Day	Next Day Saver	Second Day	Three Day	Ground
$226.55	$261.58	$200.79	$98.99	$70.82	$26.33

When we first published this article, UPS had three-day and ground-ship rates. When we re-checked prices for 2020, both of those options were gone. Well, the good news is that they’re back!

FedEx didn’t have ground shipping rates for packages of this size and destination. However, you could check at FedEx store locations to see if they can accommodate ground shipping.

Ground shipping is typically much cheaper than the one, two and three-day shipping rates, regardless of which company you use.

So, as you can see, when I use the shipping estimator for the sites, FedEx is the leader in cheap shipping so far. But what happens when we mix the United States Postal Service into the mix?

United States Postal Service

Ahh, the good old post office. It is famous for its first-class shipping options and its slogan, “Neither snow nor rain…”

As expected, USPS shipping rates were far less expensive than UPS or FedEx. Here’s the scoop on the USPS shipping rates.

Note: The box size affected the price, unlike FedEx and UPS. Bigger boxes had higher shipping rates than what’s listed below.

USPS Priority Mail Flat Rate Prices

These prices are determined based on the size of the flat-rate USPS box you use for your 2-pound package.

Small Flat Rate Box

Priority Mail 1-Day	Priority 1-Day AM	Priority 2-Day large box	Priority 2-day medium box	Priority 2-day small box	Ground shipping
$61.45	n/a	$26.30	$19.15	$10.65	$13.20

I found it interesting that the shipping calculator said that ground shipping was cheaper than two-day priority.

Another way to use the USPS to save time and money is with Stamps.com! You can print postage from home, access exclusive USPS discounts, and avoid long lines, making it one of the cheapest, most convenient shipping methods.

Media Mail

The media mail option is the cheapest option when shipping via the post office. Media mail consists of anything containing media, such as:

Books
Printed paper, such as a manuscript
CDs
DVDs

The USPS shipping calculator stated that my 2-pound box would only cost $3.45 to ship ground if it were a media mail item.

This option is the way to go if you must ship media items regularly. For instance, if you resold items like books, the media mail option would be a great money-saver.

Price Conclusion

Our research shows that the U.S. post office is the clear winner in terms of across-the-board pricing.

If your only consideration is money, you’re probably better off shipping through the post office. However, there may be other ways to save money on shipping and other factors to consider.

Customer Service Tips

Price is not the only determining factor. Here are some other things you should consider as you find the cheapest option to ship a package:

Ask Questions

I’ve found it beneficial to ask the shipping company rep for the cheapest shipping option.

These folks typically don’t work on commission, so they’re happy to help you ship items for cheaper.

They may have money-saving ideas not advertised on a shipping company’s website.

Therefore, check all options before mailing your package. The post office, for instance, has a computer system that will show you all shipping options before you choose.

The customer service rep can show you the options on the screen and help determine the cheapest route.

But the price may not be your only shipping consideration. What about other factors? Shipping? Insurance?

Are all shipping companies the same when it comes to these factors?

Tracking

Whenever you deliver with UPS or FedEx, you’ll automatically receive a tracking number. You can use this number to check the location of your package on the shipping company’s website.

This is a nice feature that might encourage you to use these carriers, even if they’re costlier.

However, USPS has stepped up its game recently and now offers tracking on many packages.

As with FedEx and UPS, you can check your tracking number on the USPS website. They’ll tell you where your package is and potentially what its arrival date is.

However, the post office doesn’t offer tracking for every package. You have to ask your post office service representative for more details on package tracking.

I have to say, though, that in my experience, the UPSP tracking system isn’t terribly detailed. I’ve found that tracking through UPS or FedEx is much more thorough.

For example, when I sell a high-dollar item on eBay, I prefer to use UPS or FedEx because of the tracking capabilities.

Tracking through the post office often leaves me wondering after the package gets checked in.

Then I’m left to wait for the parcel to arrive, not knowing when that might be.

This uncertainty could be inconvenient if I wanted to or needed to be home when the package arrived.

So, if you are shipping a package you want detailed tracking on, UPS and FedEx are best in my experience.

Insurance

All three shipping companies offer insurance for the packages you’re sending. Whether or not you choose to get insurance is up to you.

Insurance rates are generally based on the value of the item you’re sending.

Most of the insurance rates with all three companies are relatively reasonable.

When deciding whether or not you want to spring for shipping insurance, ask yourself a few questions.

Do I want to pay to replace the item if it doesn’t arrive or arrives damaged?
Does the item have sentimental value that is worth the price of the insurance?
Would I be ticked at myself if the package got lost or damaged and I hadn’t purchased insurance?

The answer to whether or not you should get insurance is a personal one. If you trust your carrier, you might be okay without insuring your package.

However, things do happen, as much as the shipping world tries to prevent mishaps.

If you’re shipping an important item, you may want to consider paying for insurance.

Care and Customer Service

In this day and age, it can seem that bad customer service is everywhere.

Maybe I’m living in my glory days, but I remember when I was young that good customer service was a must.

At every job, my employers told me the customer was the number one concern.

I was expected to work hard and work well. I was also expected to treat customers like royalty.

That expectation seems gone today, but you can still find good customer service.

I note businesses that have excellent customer service and tend to frequent them over companies that don’t.

You probably won’t find one shipping company with better customer care.

However, you will probably find individual branches that have better employees than others.

In your city, the FedEx employees might be horrible, while the UPS employees are great. I might have top-notch FedEx employees and rotten USPS service workers in my town.

My advice is to keep your eyes open and take note of the companies with the best workers in your area.

Personally, my local post office continually provides terrific service. I have never once walked up to the desk and received lousy service.

For that reason (among others), I use them frequently when shipping packages. Unfortunately, the employees you see aren’t the only ones who handle your packages.

Back Room Package Etiquette

Once your package leaves the front desk, it is either sent to a back room or sent to a shipping hub.

Who knows what happens with your packages once they’re behind closed doors?

It’s anyone’s guess whether your package will be handled carefully by a good employee or horribly by a bad one.

You don’t have any control over that, but you have ways to keep tabs on backroom package etiquette.

The first way to understand how your local shipping company handles packages in the back room is to note how they arrive.

Check with recipients and ask them how the package looked when it arrived. Was it in decent shape or full of dents?

If you get too many complaints about damaged packages, it might be time to switch shipping companies.

Other Ways to Save Money on Shipping

Besides choosing the cheapest way to ship your package, there are other ways you can save money on shipping. Here are some ideas.

Save Money by Reusing Shipping Boxes

Another way to make shipping cheaper is to avoid buying shipping boxes if possible. One way I save money on shipping is to keep boxes I receive from Amazon and other deliveries.

I put them in our storage area, so I also have several quality boxes on hand for shipping things. Saving boxes of all sizes ensures I have something on hand for nearly all of my shipping needs.

As a result, I rarely have to pay for shipping boxes, which can be expensive. They’re often costlier when you buy them at the shipping store. Walmart and similar stores have them priced cheaper, but free, reusable boxes are the best money-savers.

Note that when reusing shipping boxes, removing all the old labels is important. Similarly, you can cover them up with tan shipping tape. The goal is to remove all evidence of a prior shipping address and instructions. Doing so will help avoid confusion as you reuse the box to ship elsewhere.

Choose the Right Packaging

I mentioned choosing the correct box to ship your packages earlier, but do you need a box? In some cases, padded or bubble envelopes might suffice.

These envelopes are generally less expensive than boxes. You can save even more money if you buy your packaging elsewhere, such as at the shipping store or post office.

Think about your package and what type of shipping package it requires to be safe. Please don’t overdo it by using more expensive boxes when they’re not necessary.

Choose a Slower Shipping Time

Another way to save money on shipping is to choose a slower shipping time. In other words, please don’t send a package overnight when it can easily wait a week before it arrives.

Think about the item and who you’re shipping to. If it’s a client for your business, set arrival expectations ahead of time: Under-promise and over-deliver.

In other words, don’t promise the package in three business days and sign yourself up for higher shipping costs. Instead, promise the package in two weeks and choose ground shipping.

Your client will be surprised when the package arrives in a week instead of two. Feel free to put faster shipping options on your website, but have the client pay for them.

Doing so will help ensure clients aren’t choosing fast shipping options unless they need to. You’ll save money on shipping and still be able to meet or exceed customer expectations.

Remove Unnecessary Packaging

Another way to save money on shipping is to remove unnecessary packaging. For instance, let’s say you’re shipping a toy to a child for his or her birthday.

If a protective plastic box surrounds the toy, removing the plastic may save money on shipping. This can make the overall diameters of the toy smaller, enabling you to ship in a smaller box.

Then, you may have a lower shipping rate because you can use a smaller box. So remove unnecessary packaging when it helps you ship in a smaller container.

Flat Rate Shipping Can Be Cost-Effective

We talked before about the post office’s flat-rate shipping options. Flat-rate shipping doesn’t always result in the lowest price, but it does on many occasions.

Check with shipping carriers about flat rate shipping to see if it’s the best rate for your package.

Discounts & Coupon Codes

You may also take advantage of discounts on certain shipping products. For instance, your local shipping store might have a coupon for a discount on packaging materials.

You might get a discount on boxes, packaging tape, or bubble wrap. Similarly, some shipping companies offer member discounts. UPS, for example, sometimes provides discounts for AARP and AAA members.

Also, ask at your local shipping store about membership discounts or coupon codes, and save additional money on shipping.

Note: You’ll likely have better luck getting discounts at FedEx and UPS than at the post office.

However, most shipping carriers, including the post office, offer discounts on shipping volume.

This means you can get discounted shipping prices if you mail a lot of stuff regularly. For example, you get a discount if you do a bulk mailing for media mail (300 pieces or more). And, if you do a bulk first-class mail (500 pieces or more), you get a discount.

Check with your post office or other shipper for details on these types of discounts.

What Are Cheapest Shipping Options – Summary

In conclusion, shipping your packages can cost you various rates, depending on your personal preferences. Many factors come into play. Whether it’s the cubic size of the packages you’re mailing, their weight, the destination (especially international shipping), or another factor, details matter.

One company isn’t necessarily better than another regarding safety in handling or timeliness. It’s up to you to determine which company you have the best luck with.

I recommend trying all three companies mentioned above to see which ones you have better luck with. I often use the United States Postal Service for my shipping needs. However, I don’t have to ship packages often and have a terrific local post office.

Conversely, if you run a small business where timeliness and tracking matter, you might be happier with UPS or FedEx; there are also many other carriers to consider, like DHL.

Give all three a trial run and see which best accommodates your shipping needs. The answer might surprise you. A reputable shipping source is vital if you ship a lot of packages.

You don’t want to damage your business’s reputation by using the cheapest shipping source if they’re not shipping safely. Similarly, you won’t want to spend more money than necessary on shipping and waste valuable company resources.

Do your due diligence and find the best shipping options, prices, and services. Then, stick with what works while always looking for ways to save on or improve your shipping needs.

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