FedEx Ground Economy vs USPS Ground Shipping

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If you're looking to ship packages, you have two popular options: FedEx Ground Economy and USPS Ground Shipping.

FedEx Ground Economy is a cost-effective option, with a starting rate of $7.85 for a 1-pound package.

USPS Ground Shipping, on the other hand, has a flat rate of $7.50 for a 1-pound package.

Both services offer reliable and efficient shipping options, but the key difference lies in their pricing and delivery times.

If this caught your attention, see: Fedex Shipping Weight Limit

FedEx Ground Economy vs USPS

So you're trying to decide between FedEx Ground Economy and USPS for your shipping needs. Here's the lowdown:

USPS Ground Advantage is usually the cheapest option, making it a great choice for budget-conscious individuals and businesses.

Delivery times can vary depending on the destination and distance, but USPS Ground Advantage typically delivers packages within 2-5 business days, while FedEx Ground Economy takes 2-7 business days.

Both services have their strengths when it comes to reliability and consistency, especially for deliveries to rural and remote areas.

Credit: youtube.com, The Cheapest Way To Ship A Package – USPS Vs FedEx Vs UPS

However, if speed is a priority, USPS Priority Mail is the fastest option, delivering in 1-3 days.

Here's a quick comparison of the two services:

Ultimately, it's worth considering the specifics of your shipping needs before making a decision.

USPS Advantage

USPS Ground Advantage is usually the cheapest option, making it a great choice for budget-conscious shippers.

One of the biggest advantages of USPS Ground Advantage is its reliability, especially for deliveries to rural and remote areas, thanks to its widespread network.

USPS Ground Advantage typically delivers packages within 2-5 business days, which is comparable to FedEx Ground Economy's 2-7 business days.

You can expect consistent delivery times with USPS, as it has a reliable delivery schedule.

Both USPS Ground Advantage and FedEx Ground Economy have variation based on distance, so it's not always a guarantee which one will be faster for close proximity deliveries.

Here's a quick comparison of the three services:

Cost

USPS Ground Advantage is often less expensive than FedEx Ground Economy, mainly due to regulatory flexibility and volume discounts.

Credit: youtube.com, FedEx Ground Economy: What You Need to Know

Companies can take advantage of discounted commercial rates through shipping software like Ordoro, which can help reduce costs.

USPS Ground Advantage can deliver packages faster than standard ground services, making it a more efficient option for many businesses.

FedEx Ground Economy has more flexible pricing models, which can be beneficial for companies with varying package weights and sizes.

Here's a comparison of the costs:

Keep in mind that companies using large volumes can obtain discounts from both FedEx and USPS through shipping software like Ordoro.

Returns

Returns can be a hassle, but with FedEx Ground and USPS, you can ship items back easily and efficiently.

FedEx Ground offers a variety of return services, including FedEx Return Services, which allows customers to schedule a return pickup online or by phone.

Returns can be made within 30 days of delivery for most items.

USPS offers a range of return services, including USPS Retail Ground, which is a cost-effective option for returns.

You can also use USPS' online tools to track your return and get updates on its status.

FedEx Ground's return policy varies by seller, so be sure to check with the seller for specific return details.

Features and Benefits

Credit: youtube.com, What is FedEx Ground Economy? FedEx SmartPost Rebranded Explained

FedEx Ground offers a cost-effective shipping solution with a network of over 1,600 locations across the US.

FedEx Ground's fuel surcharge is based on the current national average fuel price, which is updated weekly.

One of the benefits of using FedEx Ground is its reliable and on-time delivery service, with a 99.5% on-time delivery rate for packages shipped within the contiguous US.

Additional reading: Us Mail Ground Shipping Time

Features

FedEx Ground Economy service is available for locations within the U.S., covering 48 states, including Alaska, Hawaii, U.S. Virgin Islands, U.S. territories, P.O. boxes, and military APO, FPO, and DPO destinations.

You can use FedEx Ground Economy to deliver packages from Monday to Saturday, usually within 2-7 business days. This means you can get your packages delivered quickly, without having to wait for a Sunday delivery.

Saturday delivery is possible by USPS without any additional FedEx surcharge, which is a great perk if you need to get your packages delivered on the weekends.

FedEx cargo airplane depicted with vibrant sunset sky at Memphis Airport, showcasing logistics theme.
Credit: pexels.com, FedEx cargo airplane depicted with vibrant sunset sky at Memphis Airport, showcasing logistics theme.

Each package for FedEx Ground Economy should have a maximum weight of 70 lbs. This is an important limit to keep in mind when shipping your packages.

Each package may not exceed 130 inches in length plus girth. This is another important size limit to consider when preparing your packages for shipping.

FedEx Ground Economy supports Third Party billing for Ground Economy shipments, which can be helpful for businesses or individuals who need to track their expenses.

Intriguing read: Fedex Home Delivery Time

Need for Speed

UPS's SurePost service is a great example of a fast and efficient shipping option. It's equivalent to FedEx's SmartPost, but has consistently delivered packages faster.

FedEx has been working to improve its own delivery times, and it's now using its own linehaul network to drive shipments. This could make FedEx Ground Economy competitive with UPS SurePost for speed.

Amazon is another major customer of the USPS's Parcel Select service, which is used by both UPS's SurePost and FedEx's SmartPost. This service has allowed them to save on costs and improve delivery times.

FedEx couldn't previously co-mingle its Ground Economy parcels with its Ground volumes, which limited its cost savings. But now that's no longer an issue.

You might enjoy: Fedex Smartpost vs Ground

Reviews

White FedEx Truck on Street in City
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FedEx Ground Economy is a cost-effective shipping option that offers reliable and efficient delivery services. With a 3-5 day delivery window, it's perfect for businesses and individuals who need to send packages within the contiguous US.

FedEx Ground Economy offers a range of services, including residential and commercial delivery, and can handle packages up to 150 pounds. It's also a great option for businesses with a high volume of packages to send.

One of the biggest advantages of FedEx Ground Economy is its competitive pricing, with rates starting at just $10.95 for a 1-pound package. This makes it an attractive option for businesses on a tight budget.

FedEx Ground Economy also offers a trackable service, allowing you to stay up-to-date on the status of your package. This is especially useful for businesses that need to keep their customers informed about their shipments.

Overall, FedEx Ground Economy is a reliable and affordable shipping option that's perfect for businesses and individuals who need to send packages within the contiguous US.

Rebranding and Changes

A Fedex Van Traveling on Road with Intersection
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FedEx has rebranded its service to FedEx Ground Economy from FedEx SmartPost, marking a significant change in its last-mile delivery operations.

This rebranding is a result of FedEx's decision to divert its postal business into its own network, allowing for more control over package density in its business-to-consumer (B2C) ground delivery network.

FedEx previously tendered about 3 million parcels per day to the Postal Service for last-mile deliveries, but now handles these deliveries itself.

The FedEx Ground Economy contract-only service offers deliveries within two to seven business days depending on the length of haul to the destination.

Check this out: Usps Business Reply Mail

What's Next for USPS?

The US Postal Service (USPS) is facing a crucial decision regarding its deal with FedEx. If FedEx is only handing off rural deliveries to the USPS, it could start losing money on the deal, as these deliveries are the least profitable.

The USPS needs to decide whether to renegotiate its deal with FedEx to increase the unit rate to reflect delivery costs for rural addresses. This could help the USPS break even or even make a profit on these deliveries.

White delivery truck driving on a sunny day in Hiroshima, Japan, surrounded by green trees.
Credit: pexels.com, White delivery truck driving on a sunny day in Hiroshima, Japan, surrounded by green trees.

FedEx Express is the USPS's largest supplier, handling nearly all Express Mail, Priority Mail, and First Class that must move via the air. The contract between the two carriers is up for renewal in the next few years.

Losing the USPS express air business would be very disruptive to FedEx's Express line haul operations.

What Does Rebranding Mean for Shippers

The rebranding of FedEx's last-mile delivery operations to FedEx Ground Economy is a significant change for shippers.

FedEx used to deliver millions of parcels to the U.S. Postal Service for last-mile delivery, but it's now handling those deliveries itself.

This change can complicate the transportation management process, particularly when it comes to parcel management.

Parcels are inherently riskier than other shipments due to their size and volume, making them more prone to loss, damage, or inaccurate rating.

To avoid unnecessary costs, organizations need to leverage shipment bill auditing and comprehensive analytics solutions.

FedEx delivery truck parked on an urban street, highlighting city logistics.
Credit: pexels.com, FedEx delivery truck parked on an urban street, highlighting city logistics.

Even with the elimination of the hand-off to USPS, there's still a need for a hand-off in returns with this shipping service level.

Thoroughly auditing invoices for any differences or surcharges that arise from the changing of service providers is still imperative, especially when FedEx works with USPS for returns.

This will help ensure accurate rates and maximize return on investment via better customer service in final mile delivery.

Analytics and shipment auditing are the absolute necessities for success in today's transportation world.

Account

Your FedEx Ground Economy account can be associated with your FedEx account number(s) in StarShip.

To enable Ground Economy on your account, you'll need to contact FedEx directly, which will be based on your average daily shipping volume.

Your Ground Economy account settings can be configured for any account listed on the Accounts tab in FedEx Setup.

You can access Ground Economy options by navigating to the Settings tab for each account.

Purpose and Goals

Aerial shot of multiple abandoned FedEx trucks and vehicles on a rural dirt road in Saint Charles, MN.
Credit: pexels.com, Aerial shot of multiple abandoned FedEx trucks and vehicles on a rural dirt road in Saint Charles, MN.

FedEx is looking to drive efficiencies in its legacy FedEx Ground network, which will help increase profitability.

By increasing parcels per stop, FedEx aims to streamline its operations and reduce costs. This move is a strategic decision to optimize its network and improve overall efficiency.

FedEx SmartPost had a standalone operations model, which has been shut down to integrate into the FedEx Ground network, resulting in significant operational savings.

Frequently Asked Questions

Does FedEx Ground economy get delivered by USPS?

Yes, FedEx Ground economy packages to certain destinations, such as P.O. Box and U.S. territories, are delivered by the United States Postal Service (USPS). This is an exception to the standard FedEx Ground delivery for most economy packages.

Can I drop FedEx Ground economy at the post office?

No, you cannot drop FedEx Ground economy shipments at the post office after July 14, 2024. Use the correct carrier's label and drop-off location to ensure your package is delivered correctly.

Clara Donnelly

Writer

Clara Donnelly is a versatile writer with a passion for crafting engaging content across various industries. With a keen eye for detail and a knack for storytelling, she brings complex topics to life through her writing. Her expertise spans a range of topics, including sustainable packaging solutions, where she explores innovative ideas and eco-friendly practices that minimize waste and promote environmental responsibility.

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