Choosing the right shipping carrier can impact your bottom line, especially with rising rates and tighter delivery windows in 2025. Whether you’re shipping small packages or international orders, FedEx, UPS, and USPS each offer distinct advantages in cost, speed, and reliability.
In this updated 2025 guide, I compare FedEx vs UPS vs USPS (United States Postal Service) in terms of pricing, service options, features, integrations, and customer satisfaction. I also discuss the newest updates, especially when it comes to pricing for each carrier provider.
Key takeaways:
The biggest differences between USPS vs UPS vs FedEx are available shipping features and pricing for special services. Overall, I recommend the following:
- FedEx: Best for expedited shipping, perishable goods, and alcohol
- UPS: Best for large and heavier packages, high-value items, and fast international shipping
- USPS: Best for affordable domestic deliveries and lightweight items
Fit Small Business is able to offer our services for free because some vendors may pay us for web traffic or other sales opportunities. Our mission is to help technology buyers make better purchasing decisions, so we provide you with information for all vendors — even those that don’t pay us.
1
Square
Employees per Company Size
Micro (0-49), Small (50-249), Medium (250-999), Large (1,000-4,999), Enterprise (5,000+)
Any Company Size
Any Company Size
Features
Barcode Scanning, Cash Management, Customer Management, and more
2
Toast
Employees per Company Size
Micro (0-49), Small (50-249), Medium (250-999), Large (1,000-4,999), Enterprise (5,000+)
Any Company Size
Any Company Size
Features
Barcode Scanning, Cash Management, Customer Management, and more
3
Clover
Employees per Company Size
Micro (0-49), Small (50-249), Medium (250-999), Large (1,000-4,999), Enterprise (5,000+)
Any Company Size
Any Company Size
Features
Barcode Scanning, Cash Management, Employee Management, and more
FedEx vs UPS vs USPS at a Glance
In the news: 2025 pricing and policy changes
- FedEx: Effective January 6, 2025, FedEx implemented an average 5.9% increase on package and freight rates, and on January 20, FedEx One Rate pricing also increased. A new minimum billable weight of 40 lbs applies to packages subject to the Additional Handling Surcharge.
- UPS: On December 23, 2024, UPS implemented a 5.9% average rate hike, covering domestic, air, and international shipments. Residential and peak surcharges were also updated. It also implemented new service standards starting April 1, 2025, under the “Delivering for America” plan. These changes aim to improve efficiency, with 14% of First-Class Mail deliveries becoming faster, 11% slower, and 75% remaining unchanged.
- USPS: Effective January 19, 2025, USPS raised Ground Advantage rates by 3.9%, Priority Mail by 3.2%, and Parcel Select by 9.2%.
When to use each carrier
Each shipping provider serves a different need. Whether you prioritize speed, cost, or shipping complexity, here’s when to choose FedEx, UPS, or USPS:
Pros
- Fastest overnight service (First Overnight by 10 a.m.)
- Offers specialty packaging for perishables
- Wide retail drop-off network via partner stores
Cons
- Interface issues in shipping calculator
- Higher base pricing, especially for residential delivery
- Fewer options for smaller senders without business accounts
FedEx is best for speed and specialty shipments and ideal for:
- Businesses needing fast delivery options should choose FedEx for its overnight, express, and seven-day delivery capabilities.
- Merchants shipping perishable items can benefit from FedEx’s proprietary cold packaging, which maintains safe temperatures for up to 96 hours.
- Companies shipping alcohol should choose FedEx, provided that labels are created using FedEx Shipping Manager.
- Sellers that ship internationally may find FedEx’s rates for small, lightweight parcels competitive.
Pros
- Competitive international delivery speeds
- Supports insurance up to $50,000 per package
- Strong rate access through ecommerce platforms
Cons
- Pickup requires a fee (unless using Smart Pickup)
- Higher user complaints about misdelivery
- Fewer retail locations than USPS
UPS is best for heavy, valuable, or international items and ideal for:
- Businesses shipping bulky or heavy packages, such as furniture, will benefit from UPS’s 150-pound weight allowance.
- Companies needing reliable overnight or international deliveries can rely on UPS Next Day Air, which often rivals FedEx in speed.
- Retailers shipping high-value or fragile goods can insure up to $50,000 and request custom packaging using UPS’s advanced techniques.
- Commercial shippers of alcohol (not to consumers) can also use UPS for licensed deliveries.
Pros
- Cheapest rates for packages under 20 lbs
- Accessible via retail partners & post offices
- Flat-rate boxes simplify shipping cost planning
Cons
- Limited phone customer support hours
- Slower standard delivery vs FedEx/UPS
- No alcohol shipping and limited liability options
USPS is Best for affordable domestic shipping and ideal for:
- Small businesses shipping lightweight parcels under 20 pounds can use USPS for the lowest rates, especially with Priority Mail or Ground Advantage.
- Sellers looking for discounted pricing based on box size — not weight — should consider Priority Mail Cubic.
- Ecommerce stores that rely on fulfillment tools like Stamps.com or ShippingEasy can access USPS discounts typically reserved for high-volume shippers.
- Businesses should note that USPS prohibits alcohol shipments and generally has slower delivery times than UPS or FedEx.
FedEx vs UPS vs USPS prices (as of June 2025)
My expert take: In my experience covering shipping solutions for small businesses, USPS consistently offers the most competitive base rates for lightweight, domestic parcels, especially under 1 pound. FedEx and UPS become the smarter choice for larger or high-volume shipments. For businesses shipping frequently or handling bulky items, FedEx and UPS typically deliver better long-term value.
Price and shipping speed are two of the most important factors when choosing between FedEx, UPS, and USPS. Below is a table comparing typical 2025 starting rates for common shipping scenarios:
A few things to note:
- Rates may vary if postage is purchased in person or during peak holiday seasons.
- Fulfillment companies and shipping software providers often offer discounted rates.
For exact shipping costs, use the carriers’ calculators or try our dimensional weight calculator to learn how size impacts price:
USPS vs UPS vs Fedex prices: 2024 vs 2025 rate increases
Here’s how shipping rates changed across USPS, UPS, and FedEx from 2024 to 2025:
FedEx vs UPS vs USPS: Delivery speed
My expert take: FedEx and UPS offer fast, reliable overnight and express options, with FedEx often delivering earlier in the day. The USPS can’t compete on speed, but it remains a dependable and low-cost choice for standard domestic shipping. Your decision ultimately depends on how urgently your customers expect delivery — and whether the added speed justifies the cost.
FedEx delivery speed
Certain FedEx Ground routes are not only faster than USPS but also more cost-effective, especially for heavier shipments. If speed is critical, FedEx First Overnight can deliver packages as early as 10 a.m. the next day. For added convenience, FedEx offers widespread drop-off access through retail partners.
UPS delivery speed
UPS is a strong option for overnight and international shipments, particularly when sending heavier items. UPS Next Day Air is a reliable — but costly — overnight service. While pickup incurs a small fee, it’s a practical choice for businesses with labels ready. UPS also provides stronger commercial discounts than USPS.
USPS delivery speed
USPS is the most affordable choice for shipments under 20 pounds and performs well for both small and heavy items, thanks to its flat-rate shipping. While post office hours are more limited than FedEx and UPS, retail partners like grocery stores offer expanded access. Its reliability and low pricing make it a strong fit for small businesses.
FedEx vs UPS vs USPS: shipping features
My expert take: FedEx and UPS offer more robust services like higher insurance coverage, advanced tracking, and scheduled pickups. USPS stands out for accessibility and ease of use, particularly for small businesses shipping lightweight items.
FedEx shipping features
FedEx is ideal for businesses that want flexibility, especially when shipping high-value or fragile goods. It offers seven-day delivery, scheduled recurring pickups (starting at $14/week), and access to specialized services, including electronic COD (ECOD) and cold chain packaging.
The FedEx Delivery Manager allows users to track up to 30 shipments and manage deliveries in real time. Businesses also benefit from insurance coverage of up to $1,000 through the FedEx Office Packing Pledge if FedEx handles the packing. Plus, small business account holders receive discounts of up to 30% on Express services and 15% on Ground, along with access to My FedEx Rewards and free packaging supplies.
UPS shipping features
UPS stands out for its scalability and international capabilities. Same-day pickups cost $13 and can be scheduled in advance for $8. Drop-offs are free at UPS Stores, Access Points, and drop boxes. UPS My Choice for Business lets you track up to 25 shipments, manage returns, and even build branded tracking pages. It offers COD service and liability coverage of up to $100 by default, with the ability to declare values up to $50,000 per package or $100,000 per pallet.
With a UPS business account, you can unlock discounts of up to 50% on services and access free Smart Pickup. UPS also provides detailed commercial support and dedicated business resources.
USPS shipping features
USPS is the most accessible and cost-effective option for small businesses shipping lightweight domestic packages. It offers free pickups for Priority Mail, Express, returns, and international mail, with an optional $25 Pickup on Demand for time-specific requests. USPS allows you to track up to 35 shipments and provides up to $100 in insurance for Priority Mail Express and up to $50 for Priority Mail. Additional insurance is available up to $5,000.
Small businesses can benefit from commercial pricing via online tools or shipping software, without high volume thresholds. Services like Click-N-Ship and Label Broker make label creation easy, and retail partners extend access far beyond post office hours.
FedEx vs UPS vs USPS: Use cases
Not every shipping scenario is the same. Below is a breakdown of the best carrier to use for common situations, based on cost, reliability, and service features.
Example 1: Shipping fragile ceramics across the country
You need to deliver a 10 in x 10 in x 12 in box weighing 10 lbs, containing hand-thrown ceramic mugs, from Austin, Texas, to Portland, Oregon. The customer expects delivery within two business days.
- FedEx: Delivers on time, but you’ll need to package the fragile items yourself or pay extra for special handling.
- UPS: Offers 2-day delivery and professional in-store packing services to protect fragile items.
- USPS: More affordable, but slower, and doesn’t offer packing assistance. You’re responsible for proper packaging.
In this situation, UPS is the best option — reliable delivery plus added support for fragile shipments.
Example 2: Recurring shipment of subscription boxes
You ship 1 lb skincare boxes (6 in x 4 in x 2 in) each month to 500 customers across the US. Delivery within 5 business days is acceptable.
- FedEx: Can handle the volume with Ground/Home Delivery, but rates and integration setup can be higher.
- UPS: Offers reliable ground service and pickup scheduling, but may require a business account for automation features.
- USPS: Most efficient for small, lightweight packages with easy integration into ecommerce shipping software. Includes free pickups and built-in commercial pricing.
In this situation, USPS is the ideal carrier — affordable, scalable, and optimized for recurring lightweight shipments.
Example 3: Overnight delivery of a high-value item
You need to send a $2,000 laptop (16 in x 12 in x 4 in, 5 lbs) from Chicago to San Diego for a trade show. It must arrive the next business day.
- FedEx: Offers guaranteed early delivery with optional insurance, but declared value limits are lower without add-ons.
- UPS: Matches FedEx’s delivery window and allows higher declared value coverage. Also offers professional packing services.
- USPS: Has a next-day option, but coverage is limited, and arrival times aren’t always guaranteed.
In this situation, UPS is the clear winner — best for protecting high-value items with dependable overnight service.
FedEx vs UPS vs USPS: Software compatibility and integrations
My expert take: All three major carriers integrate with leading ecommerce platforms and shipping software. But not all integrations offer the same ease, functionality, or pricing perks. If you want instant access to discounted rates with minimal setup, USPS is the most plug-and-play option. UPS is a better fit for businesses that ship internationally or at high volumes. FedEx works well for companies that need advanced features, though it may require more manual setup or support to get started.
FedEx vs UPS vs USPS: ease of use
My expert take: All three carriers are relatively easy to use for basic shipments, especially if you’re using third-party tools or platforms to generate labels. That said, USPS comes out ahead in terms of accessibility, thanks to its widespread footprint, simple calculator, and no-login drop-offs. FedEx and UPS both work well for businesses, but FedEx’s shipping calculator can be clunky, and UPS has fewer physical locations despite strong retail partner coverage.
Each shipping carrier has many locations where you can drop off packages, provided you have already paid for postage and packed your box. All have retail partner locations inside grocery and office supply stores — many offer extended hours, while some operate 24/7.
FedEx ease of use
When calculating shipping rates, we had difficulty finding FedEx Ground options using the company’s calculator online. You may need to try multiple browsers to get the rates to show up. However, the rest of the rates were straightforward to calculate.
The FedEx Home Delivery option may show up if you’re shipping to a residential location rather than FedEx Ground. This service is faster and offers weekend deliveries to more residential areas.
While there are many FedEx locations, some smaller communities may only have one. FedEx hours are usually 9 a.m. to 7 p.m., Monday through Friday, and 10 a.m. to 5 p.m., Saturday and Sunday. Extended hours may be found at FedEx counters within retail partner stores, such as some Walgreens, Dollar General, Office Depot, and OfficeMax locations.
UPS ease of use
The shipping calculator on the UPS website is easy to use and provides a simple table with all the rates based on your input. There aren’t many UPS locations, although there are many drop boxes and retail partners like Staples and PostalAnnex. Hours are daily from 8 a.m. to 6 p.m. or later, depending on location.
USPS ease of use
Calculating shipping is easy using USPS because you just need to enter the weight and the ZIP codes you’re shipping from and to in the shipping calculator. While nearly every city and town has a USPS location, it may close for lunch in smaller cities and have limited weekend hours.
Retail USPS hours vary, so if you’re shipping or picking up something from the post office, you’ll likely need to take off work early. Typical hours are 8:30 a.m. to 5 p.m., although you may find extended hours at retail locations, such as those found at Walmart, Staples, or Hy-Vee. Additionally, many FedEx counters offer USPS products and services, including drop-off.
FedEx vs UPS vs USPS: User reviews
My expert take: In the battle of UPS vs FedEx vs USPS for fast shipping times, it was a tie for most customers, with USPS slightly edging out the other two carriers in terms of the sheer number of reviews and ratings. That said, all three have very low user ratings online, with common complaints around lost packages, customer service, and delivery reliability.
FedEx user reviews
User review rating: 1.1 out of 5 based on 7,500+ reviews on ConsumerAffairs
I agree with the positive feedback on FedEx’s speed and 7-day delivery, especially for time-sensitive orders. That said, the volume of complaints about missed packages makes it less ideal if your customers require consistent, dependable tracking.
UPS user reviews
User review rating: 1.2 out of 5 based on 7,400+ reviews on ConsumerAffairs
UPS stands out for international speed and delivery professionalism. But negative feedback around handling and property damage is worth noting if your packages are fragile or high-value.
USPS user reviews
User review rating: 1.2 out of 5 based on 8,800+ reviews on ConsumerAffairs
USPS’ affordability makes it a go-to for lightweight, domestic shipments. However, businesses that need customer service backup or delivery guarantees may want to look elsewhere.
How to reduce your shipping costs
Shipping expenses can quickly eat into your margins—especially during high-volume seasons. Fortunately, there are practical, low-effort strategies that any small business can use to reduce shipping costs without compromising on service.
Here are four proven ways to cut costs when shipping with FedEx, UPS, or USPS:
1. Use small, lightweight packaging
Dimensional weight pricing (DIM) charges are based on package size, not just weight. That means even light items can cost more if packaged inefficiently.
To reduce these charges:
- Choose the smallest box or poly mailer that fits your item safely. Poly mailers weigh less, take up less space, and often qualify for lower rates than boxes, especially under 1 lb.
- Avoid excess void fill and bulky boxes.
- Use flat-rate packaging when possible (especially with USPS or if you’re shipping long distances).
2. Offer flexible delivery options
Give customers control and reduce your own shipping burden by offering more choices at checkout:
- Standard shipping for customers who don’t need rush delivery.
- Expedited shipping at a higher cost for urgent orders.
- In-store or local pickup to eliminate shipping altogether if you have a retail presence.
By steering more buyers toward cost-effective options, you lower your per-order spend.
3. Outsource to a fulfillment provider
Third-party logistics (3PL) companies handle picking, packing, and shipping for you, and they negotiate better rates with major carriers due to higher volume.
This setup helps you save on labor, storage, and shipping materials, get access to commercial discounts typically unavailable to small shippers, and scale faster without investing in your own infrastructure.
Read: Best Fulfillment Companies for Small Businesses
4. Use shipping software
Using shipping software to generate and print your labels as well as organize your shipments is a game-changer in cost reductions. These programs allow for easy comparison of carrier rates, ensuring you choose the best deal every time.
Plus, the automation of label creation and tracking saves time and avoids pricey errors. Most importantly, shipping software gives significantly discounted rates. Our top-recommended shipping software solution is ShippingEasy—it’s easy to use and offers a free starter plan.
Frequently asked questions (FAQs)
These are some of the most common questions we encounter about FedEx vs UPS vs USPS.
USPS usually turns out to be the cheapest option of the three major carriers, followed by UPS, while FedEx usually ranks last. Remember that while you can save on shipping costs with USPS, you might need to deal with delayed deliveries and lower service standards. You can offset these by getting shipping insurance for your packages.
All three shipping companies are reliable. UPS and FedEx provide better tracking services if you wish for real-time updates. UPS also offers guaranteed express shipping, ensuring that your package will arrive on time.
UPS offers the most affordable rates for express delivery with its two flagship services — UPS Next Day Air® and UPS 2nd Day Air®. The latter is the cheapest UPS express service for packages that don’t need overnight delivery.
FedEx is the ideal choice for overnight delivery. FedEx even gives you different time frame options when you want your package to be delivered the next business day.
Bottom line
When comparing FedEx vs UPS vs USPS, consider the price and shipping speed that your small business needs. While USPS has some of the best pricing, FedEx and UPS offer faster shipping times for a higher cost.
USPS is typically the best comprehensive shipping solution for most low-volume businesses. There are no monthly requirements, the service is reliable, and the regular retail rates are very competitive. However, even lower rates and discounts are available through services like Stamps.com, making it easy to print shipping labels from home.