FedEx vs UPS Shipping: Which Is Best For Your Business? (2024) - Shopify (2024)

As a small business owner selling merchandise online, you have oodles of options for domestic and international deliveries of your products.

The US Postal Service (USPS) remains a popular choice, thanks to its USPS Priority Mail service. Its competitors include DHL, Amazon Air, and Global Air Express freight and package delivery services. However, market standouts United Parcel Service (UPS) and FedEx consistently vie for the title of the fastest delivery service in the shipping industry.

In this article, we’ll provide a comprehensive rundown of the shipping and fulfillment services of FedEx versus UPS and explore how you can use each to streamline the supply chain for your ecommerce business. We’'ll dive into the key differences between these two shipping giants, comparing factors such as delivery speed, pricing, tracking capabilities, and international shipping options, so you can make informed decisions and keep your customers happy.

What is FedEx?

FedEx shipping services encompass both ground service and air service. FedEx specializes in express services, including overnight, next business day, and even same-day delivery in specific markets. Most of its business involves domestic shipping services, but customers can ship worldwide using its FedEx International service.

FedEx charges variable shipping prices based on the parcel type, delivery speed, and destination. It also offers flat-rate shipping on packages of less than 50 pounds. The FedEx Freight unit handles bulky deliveries weighing more than 150 pounds.

What is UPS?

UPS is based in the Atlanta suburb of Sandy Springs, Georgia. Its largest operational hub is in Louisville, Kentucky.

While UPS offers many of the same services as FedEx, including overnight and international shipping, it shines as a domestic ground package delivery service. Customers choose UPS for its ability to handle heavy, bulky packages in its freight distribution network. Its shipping services also cover smaller packages and envelopes.

Key differences between FedEx and UPS

The most significant difference between FedEx and UPS are their delivery speeds for international versus domestic packages. UPS can ship bulky items at affordable rates, but shipping speeds are slower for international shipments. On the other hand, FedEx offers same-day delivery at an extra cost, including overnight delivery for international shipments.

FedEx vs UPS: Shipping internationally

FedEx and UPS deliver globally, including last-mile delivery, the final stage of a parcel’s shipment to a residence or business.

UPS serves more than 14,000 domestic and international origins and destinations through its network of more than 300 air and ocean facilities. Its website states it can deliver an international package within 24 hours by placing it on the next available flight.

FedEx also advertises it can deliver packages to domestic and international addresses within 24 hours. It’s a popular choice among shippers who require rapid delivery at an affordable cost. FedEx’s international shipping rates are more favorable than UPS’'s.

FedEx also offers more support if you’re confused by the complexities of international shipping. The carrier provides specialized services to connect you with customs brokers and expedite the clearance process for specific products through FedEx International Controlled Export (FICE).

Regarding international shipping, FedEx has faster delivery times, competitive rates, and additional support services to navigate the intricacies of customs and border control. However, if your business primarily ships domestically and requires the ability to handle bulky items at affordable rates, UPS may be the better choice.

Ultimately, the decision between FedEx and UPS for international shipping will depend on your specific business needs, including delivery speed, cost, and the level of support you require.

FedEx vs UPS: Customer service

UPS and FedEx offer excellent customer service that can help if you have questions about shipping rates, delivery timescales, or missing shipments.

FedEx has a self-service help hub that answers frequently asked questions. It also offers a FedEx mobile app, text messaging support, and a customer service phone line that’s staffed Monday through Friday between 7 a.m. and 9 p.m. CT and Saturdays between 7 a.m. and 3 p.m. CT.

UPS also has an online support hub and a chatbot-style virtual assistant to assist with queries. Customer service phone lines for merchants shipping domestic parcels are open Monday through Friday between 7:30 a.m. and 11 p.m. ET. However, those shipping internationally can contact UPS’s customer service team 24/7 by phone—a significant advantage over FedEx’s time-limited support.

Both major carriers offer multilingual support if you require assistance and speak another language, ensuring that language barriers don’'t hinder your ability to resolve shipping issues or obtain necessary information.

While both FedEx and UPS provide robust customer support, UPS pulls ahead with its round-the-clock availability for international shippers, a feature that can be invaluable when navigating the complexities of global shipping.

FedEx vs UPS: Delivery speed

Delivery speed is of paramount importance to your customers. Slow delivery causes almost a quarter of shoppers to abandon their shopping carts, so it makes sense to consider a carrier’s delivery speed when evaluating FedEx or UPS.

Here are the key offerings for each shipping carrier:

• FedEx services. FedEx ships envelopes and packages in boxes of almost any size. It offers domestic same-day, overnight, and two-day shipping options. For international packages, First or Priority gets your item within one and three business days. Or, if you’re in a rush, you can get your shipment on the next available flight for an extra cost.
• UPS services. UPS ships envelopes and nearly any package, including flat-rate shipping discounts on certain-sized parcels. UPS frequently attracts package shippers that accept slightly longer delivery times in exchange for favorable prices. You can ship packages with USPS Ground Advantage that will arrive in two to five business days for just $5 .

Many companies’ shipping tiers also include return shipping, so if a package cannot be safely delivered, it returns to the sender after a final delivery attempt.

UPS vs. FedEx: similarities and differences

If you’re shipping heavy items or need the fastest delivery, you’ll probably consider both FedEx and UPS. Here’s a comparison of the two, from services offered to shipping rates, to identify which best suits your needs.

Shipping options

UPS and FedEx each offer ground, air, and freight services. Here’s how they stack up:

Ground delivery

Both companies transport goods via ground to domestic business addresses in the US and internationally. UPS leads FedEx in ground transportation services, with more trucks and faster average delivery times. The company reports that 90% of UPS Ground shipments arrive within three days. FedEx states its ground delivery times range from one to five business days, with longer times to Alaska and Hawaii.

Express delivery

In most cases, FedEx and UPS use the term “express delivery” to describe parcels that travel by air (one exception may be in-town same-day deliveries). FedEx boasts a more extensive air fleet than UPS, which it manages through its FedEx Express division. The FedEx Standard Overnight service delivers packages on the afternoon of the next business day. A higher tier, FedEx Priority Overnight, gets packages to most US destinations by 10:30 a.m. the next day.

In contrast, the top tier FedEx First Overnight delivers most letters and packages between 8 a.m. and 9:30 a.m. UPS doesn’t guarantee delivery times, but its Next Day service promises delivery on the next business day. It also offers two-day and three-day options for parcels that aren’t quite as urgent. Both companies offer Saturday delivery for an extra fee.

Freight delivery

UPS and FedEx offer freight delivery services for packages weighing more than 150 pounds. UPS boasts a particularly robust freight network that includes rail, ocean, air, and ground shipping by truck. FedEx also offers freight services while providing discounted shipping rates to customers who break heavy deliveries into several smaller shipments using an add-on feature called multiweight pricing.

Packaging

Both FedEx and UPS offer custom packaging, mainly used for flat-rate shipping. The easiest place to find their packaging is at the companies’ retail stores—FedEx Office and The UPS Store, respectively. You may also package items and use print-at-home shipping labels or labels you pick up at brick-and-mortar stores. In many cases, both UPS and FedEx provide free packing materials when you ship with them.

FedEx is well known for specialty boxes (think laptop computers) and custom packaging solutions designed for odd-shaped items such as golf clubs, bikes, guitars, and framed art. It also offers proprietary cold packaging to keep items cool for up to 96 hours, which is why store owners often prefer FedEx over UPS for time-sensitive shipments like food and beverage.

UPS provides boxes of different shapes, leaving any special package padding to the shipper.

Shipping insurance

UPS and FedEx don’t offer traditional shipping insurance on their packages, although you can insure both FedEx and UPS shipments using third parties. Under certain circ*mstances, both companies guarantee the delivery date and will reimburse you for any shipping charges if the parcel isn’t delivered within your specified time frame.

UPS does offer bulk cargo insurance policies, which high-volume merchants may find preferable to paying retail prices for each item they ship and insure. Through UPS’'s Pack & Ship Guarantee, you can also cover the item’s value, the cost of shipping, and the retail packaging price.

FedEx, however, has a maximum declared value per shipment of $100,000 compared to UPS’s $50,000, making it a solid choice if you’re shipping high-value goods.

Shipping costs

FedEx and UPS are direct competitors in pricing, alongside services like USPS, DHL, and Canada Post. Both FedEx and UPS offer extensive, downloadable tables of their various shipping rates, but often, the most convenient way to get accurate pricing is through their websites or by visiting one of their retail locations.

Here’s a breakdown of pricing (as of May 2024) for different services:

Ground shipping rates

FedEx Ground Economy (sometimes called FedEx Economy) and UPS Ground offer very similar rates for many sizes of packages and delivery distances. As of May 2024, both companies start these rates at $10.70 for a one-pound item delivered within five business days. Compared to FedEx, UPS emphasizes its ground shipping operations and may offer lower prices and fast delivery as items get heavier.

Express delivery rates

FedEx has a much more extensive fleet of airplanes than UPS, offering more express delivery options at various price points. The lowest tier FedEx Express option, FedEx Express Saver, starts at $21.97 for an eight-ounce envelope. That jumps to $63.63 when shipping that envelope via the company’s elite FedEx First Overnight tier. UPS Express rates start at $15.25 for its domestic 3-Day Select service (which may include ground shipping at UPS’s discretion). The company’s elite tier, UPS Next Day Air Early, starts at $62.97 for a letter.

International shipping rates

When shipping internationally, you may find value in both UPS and FedEx. FedEx International Priority starts at $64.75 for an eight-ounce envelope (lower for shipments to Canada and Mexico). UPS rates may be lower, but you must enter complete shipment information on the UPS website or at a UPS Store to find pricing.

It’'s also worth noting that both carriers offer discounts for high-volume shippers, so if you’'re consistently sending out many packages, it’'s worth negotiating rates with your chosen carrier. Additionally, third-party shipping software or platforms like Shopify Shipping can help you access discounted rates and streamline your shipping process.

When should you use FedEx vs. UPS?

Many ecommerce merchants and small business owners use FedEx and UPS for specific scenarios. Here is what to know when choosing between the two:

FedEx excels at express deliveries and unusual packages

FedEx built its reputation on fast shipping, guaranteeing more delivery options than UPS or the US Postal Service. However, this speed comes at a price. The company specializes in irregular-shaped shipments, from keyboard pianos to golf bags to fine art. If you need your package delivered yesterday, FedEx is your go-to.

UPS offers excellent value for heavy packages and freight

UPS and FedEx ground rates start at less than $20, but as items get heavier, UPS provides faster delivery times and lower prices than FedEx. If you’'re shipping a heavy or bulky item, UPS is likely your best bet for balancing cost and speed.

FedEx retail stores typically offer more services

If you need additional services like document production and printing, you may find more options at a FedEx Office store than at The UPS Store, which mainly focuses on the company’s core shipping business. FedEx aims to be your one-stop shop for all your business needs.

Regardless of which shipper you choose, a Shopify merchant can save money using Shopify Shipping. If your business is based in the US or Canada, you can pay pre-negotiated, discounted rates for USPS, UPS, DHL Express, Canada Post, and other carriers. You can buy Shopify shipping labels individually or in bulk. Merchants can also comparison shop within the platform. It’'s like having your own personal shipping concierge.

You can also ship your Shopify retail items via FedEx, but you must create an external FedEx account and manually connect it to your Shopify store. It’'s an extra step, but it gives you more options for getting your products to your customers.