Why are you shipping anything with UPS or FedEx when the Post Office is cheaper?

The three major players in the shipping business are UPS, FedEx, and the Post Office, and they are masters at what they do: shipping your packages. Whether you need them for your personal shipping needs or for your business shipping needs, those three companies know a thing or two about the business.

So how do you choose which one is right for you?

Your friend’s, brother’s, uncle’s neighbor had a bad experience with one of these company’s in the past, so now he tells everyone how horrible the entire organization is because of that. Let’s face facts: All businesses, big and small, have good stories and bad stories. Human beings are not infallible, and since that is what works for each company, you are guaranteed to eventually come across a bad worker in the package delivery business.

Your business needs to know the facts, and this is what they are: UPS and FedEx have higher costs for package delivery than your local Post Office does. These facts are backed up by all of the data freely and publicly available on USPS.com, FedEx.com, and UPS.com, and below you will find some of this information shown to give you a clearer picture of how each company stacks up cost-wise for your business.

Just the facts, please

Below you will find a fact-sheet of a few common items priced out through UPS.com, USPS.com, and FedEx.com, and put into an easy-to-read comparison chart.

The prices quoted here were taken from standard, normal residential rates that every person is entitled to. Every single one of these three company’s will have business, commercial, and other special pricing’s that they offer to customers. No one person will get the same business/commercial rates as another, and trying to decipher the literally hundreds of discounts each company provides is an impossible task.

What this chart shows is the actual, real rates that people in your neighborhood are paying when they ship packages to their friends and family and from their businesses. While these prices do not take into account the aforementioned discounts that each company offers, these illustrate where each of the three companies stand and give you a very good idea of what prices you can expect with a business account.

As you can see, there are some pretty vast differences in shipping costs among the big three company’s.

Naturally, people will argue that these don’t take into account all of the discounts offered, or that there are a myriad of ways a customer could lower their shipping bill with UPS or FedEx. The fact of the matter is these prices quoted for the Postal Service can also be lowered with a business or commercial account.

These facts show that, on average, UPS and FedEx have much higher shipping costs for your personal and business needs. The question this begs, then, is how can the Post Office be so much cheaper? What is the reason that the Postal Service can charge the prices they charge and still continue to be financially viable? What about Amazon entering the delivery business?

The next article in this eCommerce series will show an in-depth breakdown of how the US Postal Service is able to provide efficient, affordable package and mail service to every household in America the way no private company ever could, all while using $0 of taxpayer money.

If you wish to contact the author, you may do so at Michael@CrackedEarthMedia.com