USPS vs UPS vs FedEx: How you can get the best shipping rates

Table of Contents:

• USPS vs UPS vs FedEx: An overview
• Carrier Shipping Costs: USPS, UPS, and FedEx Breakdown
• Best Carriers for Different Shipping Needs
• How to Access the Best Shipping Discounts from Major Carriers
• Fastest Shipping Options Compared: USPS vs. UPS vs. FedEx
• Weekend Delivery Options by Carrier
• Carrier Value-Added Services Comparison
• How to Schedule Package Pickups with USPS, UPS and FedEx
• Understanding Shipping and Handling Fees Across Carriers
• Shipping Insurance Options with USPS, UPS and FedEx
• How to Choose the Best Shipping Carrier — Every Time

USPS vs UPS vs FedEx: An overview

When it comes to shipping in the U.S., three carriers dominate the market: USPS, UPS, and FedEx. While they often offer similar rates and services, each shines in different areas — and the best choice depends on your specific shipping needs. Whether you’re an ecommerce seller fulfilling daily orders or a small business shipping occasionally, understanding these differences can help you save money and keep customers happy. In this guide, we’ll break down the strengths, weaknesses, and ideal use cases for each carrier, then compare them side-by-side so you can make informed decisions every time you ship.

Kevin Hernandez, a shipping and supply chain solutions consultant, puts it simply:

“Choosing between UPS, FedEx, and USPS depends on various factors, such as shipment destination, the weight, the size, the speed, and, ultimately, the budget of the client.”

In 2025, USPS continues to lead in market share with roughly one-third of all U.S. parcel deliveries, followed by UPS and FedEx. USPS remains a government-operated service with broad, low-cost coverage, while UPS and FedEx are private, for-profit companies focusing on speed, custom delivery, and specialized business solutions. For ecommerce sellers, small businesses, and high-volume shippers alike, each has a role to play — the key is knowing when to use which.

USPS (United States Postal Service)

USPS is a government-run service with the broadest delivery network in the U.S., reaching every address — including PO boxes, territories, and military bases — without surcharges. It’s best suited for lightweight packages, small businesses, and ecommerce sellers looking for affordable shipping rates and free package pickup. USPS is especially competitive for those using cubic pricing via shipping software, offering strong savings for small but heavy parcels.

Pros

• Lowest rates for small/light packages
• Free Saturday delivery
• Free at-home or business pickups
• Delivers to remote and PO Box addresses
• Cubic pricing options available via shipping software

Cons

• Max weight limit of 70 lbs
• Less consistent tracking and delivery reliability (especially internationally)
• Limited customer support
• Fewer value-added business features than UPS/FedEx

UPS (United Parcel Service)

UPS is a global logistics leader offering strong domestic and international shipping services. It’s best suited for high-value, heavy, or urgent shipments that require speed and robust tracking. With a broad range of express and ground shipping options, UPS is a trusted choice for ecommerce businesses, healthcare providers, and organizations using international shipping services. Features like UPS My Choice® and Access Point® drop-off make it flexible for both shippers and recipients.

Pros

• Excellent tracking and delivery guarantees
• Can ship up to 150 lbs
• Extensive express and ground options
• High-value package insurance options (up to $50,000)
• Great for residential and commercial shipping via Access Points

Cons

• Many surcharges (residential, fuel, handling)
• Pickup fees unless part of a business account
• Higher pricing for light packages compared to USPS

FedEx (Federal Express)

FedEx is known for its express shipping capabilities, time-definite deliveries, and specialty services such as temperature-controlled shipping. It’s a go-to carrier for businesses with tight delivery windows, including healthcare providers and ecommerce sellers shipping perishable goods. FedEx’s robust international delivery network makes it a strong choice for cross-border shipments, and services like FedEx SameDay® and advanced real-time tracking help with urgent, time-sensitive deliveries.

Pros

• Industry-leading overnight and time-specific services
• Strong for temperature-sensitive/perishable shipments
• Advanced tracking and delivery customization
• Reliable for B2B deliveries

Cons

• Typically highest base pricing
• Surcharges for residential and specialized deliveries
• Fewer drop-off locations compared to USPS

Carrier comparison table

Carrier shipping costs: USPS, UPS, and FedEx breakdown

When comparing shipping carriers, rates are often the first place to start — but they’re only part of the bigger picture. Base rates are important, but surcharges, service levels, and package specifics can quickly change which carrier is truly the best deal. Each carrier has its own pricing structure, and the most cost-effective choice will depend on your shipment’s weight, dimensions, destination, and urgency.

Kevin Hernandez, a shipping and supply chain consultant, explains:

“USPS may be cheaper for a 10-pound box, while UPS and FedEx might be cheaper for a 30-pound box. Shippers should compare the rates and services offered by each carrier to determine the most cost-effective option. USPS might be better for a 2-pound package, but UPS might be the best choice for a 20-pound package. It depends on what you’re shipping and where it’s going.”

In 2025, USPS continues to offer the lowest rates for small and lightweight parcels, especially when using USPS Ground Advantage® or Priority Mail® Flat Rate. UPS and FedEx tend to match each other closely on heavier or time-definite shipments but add fuel, residential, and peak surcharges that can increase the total cost.

Flat-rate services — USPS Priority Mail® Flat Rate, UPS Simple Rate, and FedEx One Rate — make it easier to predict costs and are especially useful for dense packages shipped long distances. USPS generally includes all-in pricing with no fuel or residential surcharges, free tracking on most services, and free Saturday delivery. UPS and FedEx both include free tracking and $100 declared value coverage, but their base rates are paired with common surcharges for fuel, residential deliveries, and peak periods.

Ultimately, the cheapest carrier for one shipment may not be the cheapest for another. Always compare rates based on package weight, dimensions, destination, and service level — and leverage shipping software like PitneyShip® to check real‑time pricing, access commercial discounts, and avoid paying more than necessary.

Best carriers for different shipping needs

Price and speed matter, but they aren’t the only deciding factors when choosing the best shipping carrier. The right choice depends on the nature of your shipments and your specific delivery requirements. You might prioritize the simplicity of flat rate packaging, the speed of overnight delivery for perishables, secure handling for high-value items, or compliance for hazardous materials shipping.

“When choosing a shipping carrier, you should consider factors like rates, delivery speed, reliability, and customer service,” Hernandez says. “These are very specific and important needs.”

Flat rate shipping

Flat rate or fixed-rate shipping offers predictable pricing regardless of distance, making it ideal for dense items traveling long distances. USPS Priority Mail® Flat Rate is well-known for low-cost, all-in pricing that includes free packaging, tracking, pickup, and Saturday delivery. UPS Simple Rate and FedEx One Rate also provide fixed-rate options with a range of box sizes and delivery speeds, and both include free packaging. FedEx stands out by offering Pak and tube options for uniquely shaped shipments. While USPS is often the simplest and most affordable choice, UPS and FedEx provide more flexibility in delivery speeds and package types.

Small, lightweight packages

For shipments under about 5 lbs, USPS is usually the most cost-effective choice. Services like First‑Class Package® and Priority Mail Flat Rate Envelopes combine low rates with fast, six‑day delivery to homes and businesses, often without surcharges. Delivery by a local mail carrier helps keep costs low while providing tracking for peace of mind. UPS and FedEx remain competitive for smaller parcels when using their fixed‑rate or express options, and both excel for urgent document and lightweight shipments that need guaranteed delivery. For example, UPS Next Day Air® and FedEx First Overnight® offer early‑morning delivery windows, making them ideal for time‑sensitive items such as legal documents or contracts. USPS dominates in affordability and nationwide reach, while UPS and FedEx shine when speed and guaranteed delivery are the priority.

Large packages

All three major carriers—USPS, UPS, and FedEx—accept large packages and oversized packages, but fees vary. Generally, shipments are considered oversized if they exceed 70 lbs. or 108 inches in combined length and girth.

The USPS Nonstandard Fee, introduced in 2022, applies to parcels over 22 inches long, 18 inches wide, or larger than two cubic feet. UPS and FedEx apply $20–$30 handling fees for large packages, or oversize surcharges that often exceed $100. When an oversize surcharge applies, handling charges are waived.

Since these costs climb during the peak shipping season, using multi-carrier shipping software helps you compare rates in advance and find the most cost-effective carrier.

Heavy packages

When it comes to shipping heavy packages, each carrier has pros and cons. For parcels up to 70 lbs., USPS offers the lowest rates but slower delivery. For heavy packages weighing 70–150 lbs., only UPS and FedEx are options. Both apply surcharges like the UPS large package surcharge, Additional Handling, or Overweight Package fees, which make overnight delivery expensive.

To reduce shipping costs, businesses can take advantage of flat-rate packaging when size allows, since it avoids weight-based fees. Using multi-carrier tools to compare rates ensures you find the most cost-effective option for heavier parcels without sacrificing delivery speed.

Overnight Shipping

Overnight delivery is a critical service for time-sensitive deliveries, and all three major carriers compete closely in this market. Their rates, delivery guarantees, and coverage vary, making it important to compare options based on your destination and urgency.

USPS Priority Mail Express® offers one of the most affordable overnight shipping options, with USPS rates generally lower than UPS or FedEx for lighter packages. It guarantees next-day delivery to most U.S. addresses, though certain remote ZIP codes may take up to two days. Saturday delivery is included at no extra charge, making it ideal for weekend deadlines.

UPS provides reliable overnight service with two main options. UPS Next Day Air Saver® — the primary residential overnight service — guarantees delivery by the end of the next business day. UPS Next Day Air® is faster for businesses, arriving as early as 10:30 a.m. Both UPS overnight services include strong delivery guarantees and refunds for controllable delays.

FedEx offers the broadest range of overnight delivery choices. FedEx Priority Overnight® delivers by noon to most destinations, while FedEx Standard Overnight® reaches residential addresses by 8:00 p.m. For the fastest delivery, FedEx First Overnight® arrives by 8:00–8:30 a.m. in many major cities. Like UPS, FedEx rates come with service guarantees for eligible late deliveries.

All three carriers cover the continental U.S., and both USPS and UPS also serve Puerto Rico with overnight delivery. For rural or remote areas in the lower 48, USPS Priority Mail Express® can be the most competitive choice, balancing affordability and reach.

High-value shipping

When shipping high-value items, declared value coverage and insurance options are critical considerations. Coverage limits and terms vary significantly between carriers.

UPS offers declared value coverage up to $50,000 per package for most shipments, with an enhanced option available for certain domestic shipments that increases coverage to $70,000. Terms and conditions apply, and shippers should confirm eligibility before booking.

FedEx provides its Declared Value Advantage program for qualified, frequent shippers of high-value goods such as jewelry, gemstones, and precious metals. This program allows declared values up to $100,000 per shipment but is not available for one-time or occasional shipments. Pre-qualification and adherence to program requirements are mandatory.

USPS includes up to $100 of coverage with Priority Mail Express® shipments, and optional insurance can extend coverage to a maximum of $5,000. While this may be sufficient for many packages, it falls short of the higher limits offered by UPS and FedEx.

When shipping high-value items such as electronics, luxury goods, or fine jewelry, it’s important to distinguish between declared value and insurance, consider whether third-party insurance is appropriate, and compare options using shipping software to ensure you have the right level of protection for your shipment.

Shipping hazardous materials

Shipping hazardous materials requires strict compliance with federal and carrier-specific regulations. USPS allows many common hazardous items — such as fragrances, hand sanitizer, or lithium batteries — if they are properly packaged, labeled, and meet Postal Service guidelines. USPS will even provide free package pickup for these shipments.

UPS and FedEx both require you to maintain an active account to ship hazardous materials. FedEx goes a step further by requiring advance approval and limiting acceptance of hazardous shipments to designated FedEx locations. Both carriers apply a dangerous goods surcharge for air shipments, which can increase significantly based on the hazard class.

Because hazardous materials shipping involves detailed documentation and strict handling procedures, always consult the carrier’s hazardous materials guide or a compliance expert before shipping. Using shipping software can help you manage hazmat documentation, stay compliant, and avoid unexpected delays or penalties.

How to access the best shipping discounts from major carriers

Every major shipping carrier offers discount programs, and no business that ships parcels regularly should be paying full retail rates. These shipping discounts are a simple way to achieve lower shipping costs and are available to businesses of all sizes — not just high-volume shippers. Many companies fail to take full advantage of these programs, even though discounts can be the deciding factor in whether UPS, FedEx, or USPS is the most affordable choice.

“It ultimately depends on the volume of shipments,” Hernandez notes. “Big shippers have a lot of power, and many don’t realize it. Moving millions of dollars’ worth of shipments to a competitor can really impact UPS or FedEx.”

Discounts can be unlocked through direct carrier programs, shipping software, or 3PL partnerships. Below is how each carrier approaches discounts:

USPS discounts

USPS rates are not discounted at retail Post Office counters. Savings are accessed online via Click‑N‑Ship, Click‑N‑Ship Business Pro, or shipping software such as PitneyShip® Pro. These tools unlock USPS Commercial Pricing, including Priority Mail Cubic rates, discounted packaging, and waived surcharges. Small and home-based businesses can also participate in the USPS Loyalty Program, earning credits toward future purchases when buying Priority Mail and Priority Mail Express® labels. Discounts are immediate and require no volume minimums.

UPS discounts

Holding a UPS account can save shippers up to 50%* on UPS shipments. Discounts scale with volume and can include reductions on fuel surcharges, residential fees, and other common extras. Through PitneyShip® Pro, shippers can access even deeper discounts, waived peak surcharges, and discounted pickup fees — all reflected in real-time label pricing. No minimum volume is required, but larger shippers can negotiate even better UPS rates.

FedEx discounts

FedEx discounts are available through a free business account or via shipping software partners like PitneyShip®. Savings can reach 30% on FedEx Express® services, 15% on FedEx Ground® shipping and FedEx Home Delivery®, 70% on FedEx Freight LTL, and 10% on FedEx Office® printing. Discounts often extend to returns, international shipments, and select surcharges. Larger-volume shippers may negotiate custom FedEx rates based on their shipping profile and frequency.

Fastest shipping options compared: USPS vs. UPS vs. FedEx

All three major carriers — USPS, UPS, and FedEx — offer fast delivery nationwide, but speed, delivery windows, and guarantees differ.

USPS Priority Mail Express® offers guaranteed overnight delivery to most U.S. addresses at competitive rates, with Saturday delivery included. Delivery times are less precise than UPS or FedEx, and some remote ZIP codes may take up to two days.

UPS provides guaranteed overnight services: UPS Next Day Air® (by 10:30 a.m. to many business addresses), UPS Next Day Air Saver® (end‑of‑day residential), and UPS Next Day Air Early® (as early as 8:00 a.m. in select areas). Other express and economy options include UPS 2nd Day Air®, UPS 3 Day Select®, and UPS Ground®. Saturday delivery/pickup is available in many locations, and UPS Express Critical® offers same‑day delivery.

FedEx offers the widest variety of express services: FedEx First Overnight® (by 8:00–8:30 a.m.), FedEx Priority Overnight® (by noon), and FedEx Standard Overnight® (by 8:00 p.m.). Alternatives like FedEx 2Day® and FedEx Express Saver® balance speed with cost, while FedEx SameDay® handles urgent shipments. FedEx Hold at Location® allows secure pickup at designated sites.

As Hernandez notes, “The fastest carrier depends on your destination, cutoff time, and service level.” For Alaska, Hawaii, and rural areas, one carrier may outperform others. Compare services in real time with multi‑carrier shipping software like PitneyShip® or PitneyShip® Pro to find the best option.

“Delivery times can vary depending on the carrier, origin, and destination,” Hernandez says. “I’ve had clients ship product from New York to New Jersey, and they’ve had it there the next day, while others have taken multiple days. So, delivery times can vary based on a lot of factors such as weather conditions and package value.”

Speed comparison of FedEx vs UPS overnight delivery

Weekend delivery compared: USPS vs. UPS vs. FedEx

All three major carriers — USPS, UPS, and FedEx — offer Saturday delivery, but their policies and costs vary. Choosing the best option depends on whether you value the earliest possible delivery or avoiding extra fees.

USPS delivers to all U.S. businesses and residences on Saturdays at no extra charge for most services, including USPS Priority Mail Express® and Priority Mail®. Outgoing packages can also be picked up on Saturdays, but home‑based shippers should schedule pickups online in advance to ensure service.

UPS offers Saturday delivery for select services, with availability varying by ZIP code. Saturday pickup is available in many areas but must be scheduled and may incur an extra fee. Key services include:

• UPS Next Day Air® Early – ✅ Delivery in most metro zones | 🟡 Pickup in select areas
• UPS Next Day Air® – ✅ Delivery in most metro zones | 🟡 Pickup in select areas
• UPS Next Day Air® Saver – ❌ Delivery not available | ❌ Pickup not available
• UPS 2nd Day Air® – ✅ Saturday delivery available | 🟡 Pickup in select areas
• UPS 3 Day Select® – ✅ Delivery in select ZIPs | 🟡 Pickup in select ZIPs
• UPS Ground – ✅ Delivery in select ZIPs | 🟡 Pickup in select ZIPs

FedEx provides Saturday delivery for certain services, with pickup availability varying by location:

• FedEx First Overnight® – ✅ Delivery in many areas | ❌ Pickup not available
• FedEx Priority Overnight® – ✅ Delivery in many areas | ✅ Pickup in many areas
• FedEx Standard Overnight® – ❌ Delivery not available | ✅ Pickup in many areas
• FedEx 2Day® – ✅ Delivery on Saturday | ❌ Pickup not available
• FedEx Express Saver® – ✅ Delivery in select areas | ✅ Pickup in select areas

Availability and surcharges can vary significantly by location. Using multi‑carrier shipping software like PitneyShip® or PitneyShip® Pro can help you check ZIP‑specific availability, compare weekend surcharges, and select the most cost‑effective weekend delivery option.

Carrier value‑added services comparison

All three major carriers — USPS, UPS, and FedEx — offer a wide range of value‑added services that help businesses customize deliveries and elevate the customer experience. These services benefit both shippers and recipients, from managing returns to providing flexible delivery scheduling, improving convenience, and reducing missed deliveries.

USPS provides Informed Delivery®, Hold for Pickup, and free Sunday delivery for Priority Mail Express® in many areas. Saturday delivery is included at no charge for most USPS services, and return pickup is free. USPS also supports prepaid labels for easy returns, though some services like print return label creation and collect on delivery (C.O.D.) come with a fee.

UPS offers UPS My Choice®, enabling recipients to reschedule deliveries, reroute packages, or select a UPS Access Point® for pickup. Businesses can leverage proactive delivery alerts, automated returns, and flexible delivery windows. Services like on call pickup, signature required, and collect on delivery are available for a fee, while proof of delivery is free online.

FedEx stands out with Picture Proof of Delivery for residential shipments and Sunday delivery included for most FedEx Ground® residential addresses. FedEx Hold at Location® lets recipients collect packages at secure locations. Options like return pickup, on call pickup, and signature required are available for a fee.

2025 comparison of key value‑added services:

Some value‑added services are free, while others require a fee or premium account. Using multi‑carrier shipping software like PitneyShip® can help compare and apply these features automatically, ensuring the right combination of proof of delivery, return pickup, collect on delivery, and other tools for the most efficient and cost‑effective shipping strategy.

How to schedule a package pickup with USPS, UPS, and FedEx

Scheduling a package pickup is simple with USPS, UPS, and FedEx, and can save time for both small businesses and high‑volume shippers. All three carriers offer one‑time and recurring pickups, but requirements, costs, and availability differ.

USPS offers two main pickup services for packages with prepaid postage. The free Package Pickup service lets you hand packages to your mail carrier during their normal route. Pickup on Demand, available in most ZIP Codes, can be scheduled online for a small fee when you need a specific time. Home‑based shippers should schedule in advance to guarantee service.

UPS lets you schedule a one‑time pickup online or by phone. You can also hand a package to a driver already making a delivery to avoid pickup charges. Recurring pickup options — daily, automatic, or day‑specific — require a UPS.com payment account. With shipping software like PitneyShip®, you can often get free or discounted UPS pickup options.

FedEx requires online scheduling for one‑time pickups. Account holders can arrange recurring pickups (daily or at set intervals) online or through customer service. Fees apply unless the pickup is part of a regularly scheduled Express services pickup.

Always check ZIP‑specific availability and fees, and use multi‑carrier shipping software to compare options and secure the most cost‑effective pickup service.

Understanding shipping and handling fees across carriers

Shipping and handling fees are two separate cost components that together make up your total shipping expense. Shipping fees are charged by the carrier to transport your package, while handling fees are set by the shipper to cover order fulfillment costs such as packaging, labor, and overhead.

Carriers also apply special handling fees for packages that are oversized, overweight, irregularly shaped, or require extra care. These fees vary by carrier and can be significant — sometimes making it more cost‑effective to consider freight shipping for very large or heavy items.

Because special handling charges are in addition to base shipping rates, they can quickly increase total costs. Using carrier rate calculators or multi‑carrier shipping software helps compare fees in advance, avoid surprises, and identify the most economical shipping method for your specific package.

Shipping insurance options with USPS, UPS and FedEx

USPS, UPS, and FedEx each include up to $100 of declared value coverage at no extra cost for most shipments. Declared value represents the carrier’s maximum liability for loss, damage, delay, or misdelivery. For higher‑value shipments, you can purchase additional coverage.

With USPS, free coverage applies to Priority Mail® and Priority Mail Express® services. Additional insurance can be purchased for up to $5,000 in coverage.

UPS and FedEx both allow shippers to increase declared value for a fee, typically calculated as a small percentage of the shipment’s value over the included $100. Maximum coverage limits vary by destination and service type — generally up to $50,000 for UPS and $100,000 for FedEx under specific programs.

When shipping high‑value items, compare coverage options, limits, and costs. For additional protection, some shippers choose third‑party insurance providers. Multi‑carrier shipping software can help you compare insurance rates alongside shipping costs to ensure the right coverage for every shipment.

2025 Insurance Comparison by Carrier

How to choose the best shipping carrier — every time

No single carrier is always the best choice for every shipment. The right decision depends on factors like rates, weight, dimensions, delivery speed, distance, and special handling needs. Carrier rates also change frequently, and sometimes the best choice can be counterintuitive — for example, ground shipping may be the cheapest option for overnight delivery to nearby zones.

“UPS, FedEx, and USPS are all reliable, efficient shipping carriers,” Hernandez explains. “There may be instances where one is better than another, but it depends on the client’s specific shipping needs.”

Because of this complexity, smart shippers use multi‑carrier shipping software like PitneyShip® to simplify the process, find the most cost‑effective option, and lock in savings for every package.

PitneyShip® — ideal for home or office shipping from a single location:

• Access discounted shipping labels and stamps
• Compare shipping rates across USPS, UPS, and FedEx with the best match tool
• Buy and print postage directly from your computer
• Schedule pickups and track packages

PitneyShip® Pro — built for organizations with multiple shippers or locations:

• Compare real‑time rates across USPS, UPS, and FedEx with the best match tool
• Save with deeply discounted rates and waived surcharges
• Create Certified Mail® with electronic return receipt
• Print shipping labels and postage from your computer
• Scale easily with multi‑user, multi‑location access
• Boost productivity with secure single sign‑on
• Schedule pickups and track packages

With the right tools, you can compare shipping rates across USPS, UPS, and FedEx instantly, adapt to rate changes, and make confident, cost‑smart shipping decisions every time.