If you run an ecommerce business, you would surely want to practice cost-cutting in every way possible. And one of the areas you want to cut costs is shipping. A report by the Council of Supply Chain Management Professionals’ annual State of Logistics revealed that US companies recorded $1.49 trillion in shipping costs in 2018. As expensive shipping can cost a huge amount to a company, trying to choose which carrier offers the best pricing for your package was incredibly time-consuming and irritating. But now, ecommerce has two better options: UPS and USPS. So if you have your own ecommerce business, you should know, is UPS or USPS cheaper? Continue reading to make the right decision.
What is USPS or UPS?
USPS
The United States Postal Service (USPS) originated in 1775. Because the government organization has been there for so long, it is a leading courier business. USPS, sometimes called the postal service or US Mail, provides domestic and first-class mail delivery services.
UPS
UPS stands for United Parcel Service, a publicly listed business established in 1907 that provides freight forwarding, courier express, and logistics services. It is a leading international provider of package delivery services. “There are multiple UPS services offered with varying speeds that you can choose from.”
Difference Between UPS and USPS
1. Cheaper Flat-Rate Option
UPS doesn’t offer a cheaper flat-rate Option. With USPS, you may acquire the boxes for free and pay a set fee to send a package anywhere in the country in 1–3 business days that weighs up to 20 pounds.
2. Speed
Selecting a delivery partner who can deliver goods under the given ETAs is critical since the speed of delivery is a crucial factor for every ecommerce firm. Although both UPS and USPS provide overnight service, USPS Priority Mail Service has a standard delivery average of just 1.7 days, whereas UPS Ground takes 2.75 days. Therefore, USPS is the superior option if your product has to arrive quickly. However, it is also true that USPS is significantly stricter and has more regulations regarding the parcel’s size and capacity. Because of this, UPS occasionally proves to be a more practical and hassle-free choice for efficiently sending large shipments.
3. Which One is More Economical?
Is UPS or USPS cheaper? This is very crucial information an ecommerce business should research about. USPS offers much lower prices for packages weighing under 2 pounds, whereas UPS provides lower rates for packages weighing more and of higher value. The use of surcharges is why UPS is significantly more expensive when transporting smaller products.
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Overnight Shipping
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If you don’t need it by morning, USPS is more affordable than UPS for overnight delivery. UPS may be a little more expensive if you need your package delivered at the start of the next day, but it pays off because they guarantee delivery within that window. Therefore, you should examine the shipping costs and the arrival time frames when deciding which is preferable for overnight shipment, UPS or USPS.
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International Shipping
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USPS offers less expensive international shipping options than UPS for smaller shipments, but delivery times are much longer. If speed is not a concern, USPS can be your better choice. In contrast, UPS often charges less for big international shipments than USPS. Therefore, before deciding which logistics provider is best for your needs, you should request quotes from couriers and other logistics service providers.
Conclusion
Hopefully, now ecommerce businesses can decide if UPS or USPS is cheaper. Sometimes UPS is more expensive than USPS because of taxes and fees, especially when mailing smaller items. USPS often provides substantially better prices when delivering smaller items weighing less than two pounds. Due to its higher value, UPS is often a better option when transporting larger, heavier products.
