In today’s very competitive business world, companies are always looking for ways to get ahead of their rivals. Also, business people are looking for ways to ship important things without spending a lot of money. Courier, Express, and Parcel (CEP) is a market where different companies offer shipping services at different prices.
People spend a lot of time looking for the cheapest way to ship something. During their searches, they look at the prices charged by the top three shipping companies. USPS, FedEx, and UPS are the most successful companies in the U.S. Which one, though, has the best prices?
Your shipping costs will depend on things like the size and weight of the package, how far it needs to go, and what kind of delivery service you need. Even though the prices depend on these things, you will still want to find the cheapest way to ship your package.
How to Figure Out the Dimensional Weight of a Package
The space your package takes up in the shipping truck is called its “dimensional weight” or “volumetric weight.” UPS and FedEx both have their own ways to figure out what the dimensional weight is. Here’s how the two companies figure it out.
UPS
Find out how far apart the longest points are. Take the length, width, and height measurements of your package in inches. Round up or down to the nearest whole number. For example, boxes that measure between 1.00 inches and 1.49 inches are 1 inch, while boxes that measure between 1.50 inches and 1.99 inches are 2 inches.
To find the volume of a package, multiply its length by its width by its height. To get the dimensional weight, divide the size by the divisor. 166 is the right number for retail rates and 139 is the right number for daily rates. Dimensional Weight = (L W H) Dividend
FedEx
Use inches to measure the package’s weight, height, and length. Each measurement should be rounded to the nearest inch. You will find out how much space your package takes up.
- Divide the size of the cube by 139.
- Volumetric Weight = (L × W × H) ÷ 139
If you use the USPS’s three flat-rate options, it is the cheapest way to ship packages. This fee is for all sizes of boxes, from small to big to medium. If you can fit items that weigh more than 2 pounds into the small flat rate box, you will get a great rate.
But if the package is too big to fit in the box, you should use FedEx or UPS to send a package that weighs more than 2 pounds.
Packages that weigh more than 2 pounds can be sent by ground.
FedEx and UPS are usually the best choices for sending packages that weigh less than 2 pounds. These two companies are perfect for sending packages by ground delivery instead of air delivery. FedEx also gives new customers a 15% discount when they sign up for an account. For these shipping needs, FedEx is the better choice between the two companies.
UPS and FedEx both charge extra for items that weigh more than their standard dimensional weight. Before you ship, you need to think about your dimensional weight so you know how much they will charge you. The more your package weighs in terms of its size, the more it will cost to ship.
Ground Delivery: Packages Weighing Under 2lbs
For packages that weigh less than 2 pounds, USPS is the cheapest shipping service. Even though the prices charged by the three biggest shipping companies are almost the same for packages that weigh close to 2 pounds, the USPS has the best prices for packages that weigh less than this limit. Prices go down as your weight goes down.
First-class mail is the best way to send packages that weigh less than 13 oz. When it comes to shipping companies, USPS rates for small packages are the cheapest.
Fixed prices
Priority mail from the USPS gets your packages to you in about 1 to 3 business days. If your package weighs less than 70lbs, you can use the flat rate shipping option from USPS. Prices at different post offices start at US $6.70 and go up from there based on the type of package you are sending. This flat rate is the same in every state.
FedEx also has flat-rate services, and the package is delivered in about 1–5 business days. In contrast to USPS, FedEx’s flat rate only applies to packages that weigh less than 50 pounds. For packages that weigh more than this, the price depends on how much the box weighs.
UPS does not have a flat rate like the other two services. UPS Ground is like USPS’s priority mail in that your package will get there in about 1 to 5 business days. If you want flat rates, you might think about using the other two. To figure out which option is the least expensive, you’ll need to look at the size and weight of your package.
Priority mail from the USPS is the best choice for flat rates. It not only gets your package to you quickly, but it also has the best prices. USPS also has a higher limit on the size of packages that can be sent for a flat rate.
The company with the cheapest next-day shipping services
If you need services the next day, USPS Express is the cheapest way to do it. But there have been times when USPS didn’t deliver on the next day as promised. Clients have been upset that the packages took two days instead of one to get to their destinations.
USPS doesn’t have a morning service, so it will be hard for you to get packages to their destinations right away. Night deliveries can cost up to five times as much as regular ground deliveries.
Businesses that need fast deliveries to keep their operations running smoothly lose a lot of money because of these problems. But despite all of these problems, USPS is still the best choice for services that need to be done the next day. It also gives money back for packages that aren’t delivered on time.
FedEx and UPS have more reliable next-day services. They do, however, charge more than USPS. They will charge you twice as much as USPS does for fast shipping. But if you can’t pay their prices, USPS is a good alternative.
There are more benefits to using USPS.
Firms in the media business get extra benefits from USPS. USPS’s media mail service is the cheapest way for companies that sell printed paper, books, DVDs, or CDs to their clients to ship large packages. You have to pay $3 for every 2-pound box you use to send your stuff.
Businesses or people who ship large packages can use this offer from USPS to save money and time.
How the distance affects price
The price you pay for shipping will depend on how far your package has to travel before it gets to its final destination. Shipping companies have split the U.S. into eight shipping zones. If your package has to go through a lot of shipping zones before it gets to its destination, you will have to pay a bit more.
But there isn’t a big difference between the zones. If you use USPS Priority Mail to ship to zone 8, you are likely to pay 10% more than someone who ships to zone 2.
Does packaging affect how much it costs to ship?
Yes, the price you pay for shipping services is affected by how you pack your items. Some shipping companies charge you based on how much space your package takes up instead of how much it weighs. Because of this, some people use the higher number between the box’s actual weight and its volumetric weight. They use this number to figure out how much you should pay for shipping.
For example, FedEx charges more for shipping packages that weigh 2 pounds that are sent in tubes than for packages that are sent in standard packaging. There can be big differences in the prices. Because of the change in packaging, the price of fast overnight delivery can go up from $112 to $160.
If you want to save money on shipping costs, you should package your items well. If there is a standard shipping option, use it if you can. Also, don’t leave any extra space in your packages. You might have to pay more fees because of them. If you package your items well, they will cost less to ship.
Can you talk about the cost of shipping?
To get essential services, you must be able to negotiate. It can not only lower the price, but also make sure you get good terms. FedEx and UPS are both willing to talk, especially if they want to get a new customer. If you know how to negotiate, you might be able to get a good deal on shipping your package.
You will only choose one company to send your package. So, you have more negotiating power than the shipping companies do in these talks. Use it to make sure you get the best deal possible. If you want to build a long-term relationship with the company you choose and have more than one package, you are in a better position to negotiate.
As a business, your ability to negotiate with CEP companies is very important if you want to get the best shipping rates.
Should You Check for Deals?
With discounts, your shipping costs can be cut by a lot. Finding the right company that gives great discounts can help you get the best deal for the least amount of money. FedEx, UPS, and USPS all have different deals for customers who send a lot of packages or use their services often. But the best cut for you will depend on what you want.
For example, eBay and USPS both offer discounts. If you sell on eBay, you can use these deductions to cut down on your shipping costs and make more money. UPS gives businesses that send four or more packages a week a 10% discount on their shipping costs.
If you send more than 25 packages, you can get up to an 18% discount on your shipping costs. FedEx has a service that customers can sign up for to get discounts of up to 16% on some of their programs, like their priority overnight shipping.
How to get shipping costs down
There are a lot of ways to cut down on shipping costs and keep them within your small budget. Check out the flat rates to find low shipping costs. You might also want to cut down on the amount of stuff you want to send and use standard boxes to package your items.
Don’t leave extra space in your packages so you don’t have to pay more because of their high volumetric weight.
Final Verdict
Most of the time, the US Postal Service is the cheapest way to ship. But a lot of people have brought up questions about how reliable they are. Most of them are upset that the company can’t get the packages to them on time.
Different plans from USPS have different prices. It has the cheapest services for people who are sending packages that are much less than 2 pounds. It also has a great flat rate, and its next-day shipping services are the cheapest. The good news is that the packages get where they need to go, even if it takes them maybe two days longer.
FedEx and UPS have the best prices for shipping large packages. Both of these companies offer bulk packages at reasonable prices. Once you go over the standard measurements, their prices may change based on the size and weight of each package.
Shipping costs can use up a lot of your limited money and time. Companies or people who send packages need to find the cheapest way to do it in order to save money. The cheapest shipping company not only gives you the best value for your money by delivering your package cheaply, but it also gives businesses an edge over their competitors.
Businesses can sell their products cheaply because the costs of getting them to customers are low. This helps them sell more and make more money. The companies that offer the best deals for different needs are listed above. You can find the option that best fits your needs.
