CONTENTSshippingeasy.com/wp-content/uploads/2017/01/eCommerce-Sellers... · OVERNIGHT DELIVERY...

CONTENTS

• Introduction

| Summary of upcoming changes

| What the changes mean for you

• What carrier should I use?

| For overnight delivery

| For 2 to 3 day delivery

| For packages that weigh less than 1 pound

| For more than 3 day delivery

• Case studies

| Cosmetics

| Apparel

| Outdoor equipment

| Specialty foods

| Automotive parts

• How ShippingEasy can help

• Appendix

| Rate comparison tables

| Assumptions

1

2

3

4

5

6

7

9

10

11

12

13

14

15

16

17

28

INTRODUCTIONDeciding on the best shipping carrier and service has never been simple, and with all the carriers

introducing rate increases, optimizing your shipping operations for 2017 is more important than ever.

This guide will help you:

| Understand the coming changes

| Determine the best carrier based on your delivery timing, package weight, and destination zone

| Put the changes into context via real-world case studies

1

RATES ARE GOING UP

2016 2017

$10.80~$11.17-11.97+ 4-5% residential surcharge*

+ 3-5% rate increase

*does not apply to USPS

*Residential surcharge does not apply to USPS

SUMMARY OF MAJOR CARRIERRATE CHANGES: 2016

Priority Mail Express®:

Priority Mail®:

First-ClassTM Package:

Parcel Select® Ground:

Global Express Guaranteed® :

JANUARY 22, 2017

Average of 4.9% across Ground and Air services, International Services, and Accessorial Charges*

4.6% increase in residential surcharge

3% increase in Additional Handling surcharge

All non-fuel surcharges increasing

The Additional Handling Surcharge will now apply to any package with the longest side exceeding 48 inches (instead of 60 inches) for all Air and International packages.

Effective January 8, 2017, the Additional Handing Surcharge will apply to UPS SurePost® packages.

Fuel surcharge will be subject to weekly adjustment starting 2/6/2017.

Some dimensional weight calculations are changing; see the surcharges link below for details.

USPS® doesn’t levy surcharges

First-Class™ Package Service weight bands changing and rates increasing an average of 4.1%

DECEMBER 26, 2016

3.4%

3.9%

4.1%

2.7%

4.9%

Average of 4.4% across all services

5.1% increase in residential surcharge

6.15% increase in Fedex Home Delivery® surcharge

Average of 9% increase across all (61) non-fuel surcharges

Fuel surcharge subject to weekly adjustment starting 2/6/2017

Unauthorized package charge increases from $110 to $115 effective 01/2/2017

Some dimensional weight calcula-tions are changing; see the link below for details.

JANUARY 2, 2017

http://bit.ly/2017USPSrates

Rates: http://rates.ups.com/index.html

Surcharges: http://bit.ly/UPSsurcharges ,

http://bit.ly/UPSfuelsurcharges

Rates: http://bit.ly/FedExRates

Surcharges: http://bit.ly/FedExSurcharges ,

http://bit.ly/FedExChanges

Dimensional weight changes:

http://bit.ly/FedExDimWt

RATECHANGES

EFFECTIVEDATE

SURCHARGE& OTHER

CHANGES

REFERENCE

2

WHAT THE CHANGES MEAN FOR YOUKEY CONSIDERATIONS FOR ECOMMERCE

*Contact ShippingEasy to see how we can help you get these rates: [email protected]

No matter which carrier you use, the 2017 price increases are unavoidable for

eCommerce sellers. However, there’s no need to panic. You can easily mitigate the

impact of these changes on your business with this guide.

Are you getting the best rates?

This guide will help you compare USPS Commercial

Plus® Rates—which you probably qualify for* -versus

published standard UPS and FedEx rates—which

can be negotiated.

What kind of delivery guarantees do you need?

While all three carriers offer overnight service,

only FedEx and UPS have guaranteed second-

and third-day services. If you need to guarantee

two- or three-day delivery, using FedEx or UPS

will be less risky than USPS.

Are you (overly) concerned with brand perception?

Some eCommerce sellers use UPS or FedEx

because they believe these carriers offer more

brand cachet. These retailers might also consider

the brand value USPS Priority Mail® (PM) can

often offer by getting shipments into customers’

hands just as quickly for a lower cost than

FedEx or UPS ground services.

Are you using the right size packaging?

If you use USPS, switching from custom packaging

to a flat-rate or regional-rate package can often

save you money on the shipping cost—not to

mention the savings on getting free boxes or

envelopes delivered to your door!

Do you have special considerations?

While they are not covered in this guide, a

number of special circumstances may make one

carrier a clear winner over the others. If, for

example, you require guaranteed early morning

(or same-day) delivery, ship hazardous materials,

ship to PO boxes, or ship to APO/FPO/DPO

(Army Post Office/Fleet Post Office/Diplomatic

Post Office) addresses, we recommend you do

additional research to determine the best carrier.

If you ship internationally, check out the ShippingEasy

eCommerce Seller’s Guide to International Selling

& Shipping, available at http://bit.ly/IntGuide for

additional information.

3

FIRST, CONSIDER THESE QUESTIONS:

WHAT CARRIER SHOULD I USE?Your choice of carrier is based on a complex mix of criteria including:

| Delivery timeframe

| Package weight

| Package dimensions

| Delivery distance

| Discounts you may have negotiated (or may be able to negotiate) with a carrier

The good news is we’ve done the analysis for you and have narrowed down your choices for each

standard delivery timeframe.

In this section of the guide, we’ll examine each common delivery timeframe and provide a summary

table showing the lowest cost carrier for a given weight/zone combination*. Where relevant, we’ll color

code the table cells to indicate if a USPS flat-rate or regional-rate option may be more cost effective. To

use these tables, simply find the row in the table with your shipment weight and the column with your

destination zone; the code at their intersection will tell you who is typically the lowest-cost carrier for that

scenario (based on USPS Commercial Plus® pricing and standard FedEx and UPS pricing, including

residential and fuel surcharges). If the cell is colored, check the accompanying key to find out which

USPS flat- or regional-rate service might be an even better deal.

*This paper is intended for use as a general guide, not a definite pricing source for any carrier. Our analysis is based on several assumptions that may change over time and may not be valid for your business. Be sure to double check the rates available to you before making any shipping-related decisions. Although every effort has been made to provide accurate content, ShippingEasy and its employees make no warranty, express or implied, or assume any legal liability or responsibility for the accuracy or completeness of any information contained in this document. ShippingEasy is not liable for any actions undertaken by users of this document. Reference to any third party does not constitute or imply an endorsement or recommendation by ShippingEasy or its employees.

4

OVERNIGHT DELIVERYTYPICALLY LEAST EXPENSIVE CARRIER

Weight (Lbs)

<=20

<20 - 34

>34 - 70

>71 - 150

>150

L, 1&2

USPS

USPS

FedEx

FedEx

UPS

Zone 3

USPS

FedEx

FedEx

FedEx

UPS

Zone 4

USPS

USPS

USPS

FedEx

UPS

Zone 5

USPS

USPS

USPS

FedEx

UPS

Zone 6

USPS

USPS

USPS

FedEx

UPS

Zone 7

USPS

USPS

USPS

FedEx

UPS

Zone 8

USPS

USPS

USPS

FedEx

UPS

Zone 9

USPS

USPS

USPS

FedEx

UPS

USPS now dominates the Overnight Delivery segment with its Priority Mail Express™ (PME)

service, at least from a cost-effectiveness perspective. As shown in the table, for most weights/zones in

which they compete, USPS is the lowest-cost option1. As a perk, USPS also offers free Saturday

delivery while the others charge extra.

When it comes to on-time deliveries, available data on the three carriers can be hard to compare,

but they appear to be generally similar, with UPS and FedEx typically exceeding 94% on-time

delivery in the run-up to Christmas day, according to ShipMatrix2, while USPS exceeds 90%

on-time deliveries across Q43. Additionally, for packages over 70 pounds or requiring guaranteed

morning delivery, USPS is not an option.

If you are considering USPS, it is important to note that Priority Mail Express Flat Rate™ envelopes4 are

generally the best option for any shipment that will fit into them. Standard ($21.18) and padded

($21.64) flat-rate envelopes measure 12.5" x 9.5", while legal ($21.28) flat-rate envelopes measure

15" x 9.5". These rates fall below the lowest price available on the 2017 zone chart for a parcel

shipped via FedEx or UPS.

Priority Mail Express Flat Rate™ envelopes are generally the best option for any shipment that will fit into them

As shown in the table, for most weights/zones in which they compete, USPS is the lowest-cost option1

5

1when comparing USPS Commercial Plus® Pricing to FedEx and UPS standard pricing plus surcharges2http://multichannelmerchant.com/news/ups-bests-fedex-time-performance-christmas-week-04012016/3http://savethepostoffice.com/postal-service-releases-time-performance-reports-q4-2015/4https://www.usps.com/ship/priority-mail-express.htm

http://multichannelmerchant.com/news/ups-bests-fedex-time-performance-christmas-week-04012016/

http://savethepostoffice.com/postal-service-releases-time-performance-reports-q4-2015/

TYPICALLY LEAST EXPENSIVE CARRIERWeight (Lbs)

<=0.5

0.5-2

2-3

3-5

5-10

10-11

11-15

15-20

20-33

78-150

>150

L, 1&2

USPS

USPS

USPS

USPS

USPS

USPS

USPS

USPS

USPS

FedEx

UPS

Zone 3

USPS

USPS

USPS

USPS

USPS

USPS

USPS

USPS

USPS

FedEx

UPS

Zone 4

USPS

USPS

USPS

USPS

USPS

USPS

USPS

USPS

USPS

FedEx

UPS

Zone 5

USPS

USPS

USPS

USPS

USPS

USPS

USPS

USPS

USPS

FedEx

UPS

Zone 6

USPS

USPS

USPS

USPS

USPS

USPS

USPS

USPS

USPS

FedEx

UPS

Zone 7

USPS

USPS

USPS

USPS

USPS

USPS

USPS

USPS

USPS

FedEx

UPS

Zone 8

USPS

USPS

USPS

USPS

USPS

USPS

USPS

USPS

USPS

FedEx

UPS

Zone 9

USPS

USPS

USPS

USPS

USPS

USPS

USPS

USPS

USPS

FedEx

UPS

USPS offers no guaranteed 2-day service. However, the USPS Priority Mail® “1–3 Day” service will

get your package to most destinations in two days, and unlike the other carriers, it will get it to

some destinations within one day. Head online to usps.com1 to calculate estimated delivery times.

If you need to 100% guarantee 2-day delivery, go with FedEx or UPS.

If you do decide to go with USPS Priority Mail®, consider Regional Rate® Boxes2. While the largest (C-size)

boxes were phased out in 2016, the A and B boxes can still provide huge savings in some weight ranges and

zones as highlighted in the table, as long as your contents will fit into them (and weighs less than 20 lbs):

REGIONAL RATE® DIMENSIONS- A1: 10" x 7" x 4-3/4" top load - B1: 12" x 10-1/4" x 5" top load

- A2: 12-13/16" x 10-15/16" x 2-3/8“ side load - B2: 15-7/8" x 14-3/8" x 2-7/8" side load

USPS also offers Priority Mail Flat Rate® envelopes and boxes3 that ship any contents up to 70 pounds

to any zone for one rate. See the color code key to understand where this might be the best deal.

2-3 DAY DELIVERY

6

1https://www.usps.com/priority-mail/map/ 2http://postcalc.usps.com/PopUps/PMRegionalRateBox.htm 3https://www.usps.com/ship/priority-mail.htm

To use this table: 1: find the intersection of your package weight and destination zone, then:

2: Read the lowest-cost carrier/standard service according to the following key:

3: If the cell is shaded, check these options based on the shading color for the specific service:

ABBREVIATIONS

USPS - USPS Priority Mail®

FedEx - FedEx 2Day®

UPS - 2nd Day Air®

USPS Priority Mail Flat Rate® Envelope or Small Box

USPS Priority Mail Regional Rate® Box

USPS Priority Mail Flat Rate® or Regional Rate® Box

USPS Priority Mail Flat Rate® Box

http://postcalc.usps.com/PopUps/PMRegionalRateBox.htm

New incremental pricing breaks 1–8 oz. rates into 1–4oz ($2.61) and 4–8 oz ($2.77) clusters

No need to weigh items you know are less than 4 oz or between 4 and 8 oz

Overall, prices will increase 4.1 percent

2017 CHANGE POSITIVE NEGATIVE

If delivery time is not an important factor and your package weighs less than 1 pound, USPS First

Class™ Package Service is impossible to beat, even with the changes rolling out in January 2017.

These changes represent a mixture of good and bad news for smaller online shippers, as shown in

the table.

It’s important to note that while there are no delivery timeframe guarantees with First Class™, the

USPS advertises it as a “1–3 day” service, so for items that qualify, First Class™ is on average as

fast as the much more expensive 2-day services.

7

First Class™ is on average as fast as the much more expensive 2-day services.

USPS FIRST-CLASS PKGFUSPS FIRST-CLASS PKGF

2-3 DAY+ DELIVERYFOR ITEMS LESS THAN 1 LB

FIRST CLASS™ PACKAGE SERVICE

IF <1LB ,USPS FIRST CLASS™ WINS

UP-TO-1 LB ITEM DELIVERY OPTIONSWeight not over (Oz)

4

8

9

10

11

12

13

14

15

16

16

16

8 (letter)

16

16

16

16

16

L, 1&2

5.75

20.77

16.42

16.66

19.05

13.95

11.12

11.09

Zone 3

6.26

21.46

17.10

17.35

19.10

15.54

11.78

11.80

Zone 4

6.37

22.22

17.85

18.09

19.16

16.42

12.00

12.03

Zone 5

6.53

24.65

19.70

20.10

20.38

18.38

12.36

12.41

2.61

2.77

3.32

3.46

3.60

3.74

3.88

4.02

4.16

4.30

5.75

6.30

6.25

Zone 6

6.66

29.15

23.82

24.68

22.75

21.92

12.66

12.72

Zone 7

6.71

30.55

25.08

26.05

23.35

23.36

12.77

12.85

Zone 8

7.04

31.08

25.43

26.57

25.49

25.13

12.91

12.97

Zone 9

9.59

45.05

36.63

39.76

32.70

32.89

USPS First-Class Package

USPS Priority Mail Flat Rate® Envelope

USPS Priority Mail Flat Rate® Small Box

USPS Priority Mail®

FedEx 2Day® with surcharges

UPS 2nd Day Air® with surcharges

UPS 2nd Day Air® with surcharges

FedEx Express Saver® (3 Day) with surcharges

UPS 3 Day Select® with surcharges

FedEx® Ground with surcharges

UPS® Ground with surcharges

USPS Priority Mail Flat Rate® Padded Flat Rate Envelope

Here’s the detailed breakdown of all less-than-1-pound shipping options. For more detailed information on

the USPS rate changes, check out this post on the ShippingEasy blog: http://bit.ly/RateChanges2017

8

2-3 DAY+ DELIVERYFOR ITEMS LESS THAN 1 LB

15.999

This delivery timeframe is actually the most complicated due to the number of different services that can be considered. We have attempted to simplify it by including the services that are, in our view, most relevant:

- FASTER than 3 days but competitive with slower options:

USPS Priority Mail®: With the 2017 rate changes, PM Commercial Plus® Pricing is the least expensive option for most packages under 7 lbs and has the huge bonus of almost certainly getting

your package to its destination faster than any other option listed here.

As with the 2-Day Delivery timeframe, USPS Priority Mail Regional Rate® Boxes can also provide a

compelling value proposition here; consider them for weight/zone combinations as noted in the table key.

- USPS Retail Ground™: Because there is no commercial pricing for this service level, PM with Commercial Plus® Pricing often offers lower cost, except for packages between 0.5 and 70 lbs shipping to zone 9.

- FedEx Ground® offers competitive/best price options for many higher weight/zone combinations.

- UPS is the only carrier that will handle packages over 150 lbs.

GREATER THAN 3 DAY DELIVERY

9

TYPICALLY LEAST EXPENSIVE CARRIERWeight Not Over (Lbs)

<0.5

0.5-2

2-3

3-5

5-7

7-10

10-11

11-15

15-20

20-21

21-23

24-69

70

70-150

>150

L, 1&2

USPSPM

USPSPM

USPSPM

USPSPM

USPSPM

USPSPM

USPSPM

USPSPM

USPSPM

USPSPM

USPSPM

FedEx

FedEx

FedEx

UPS

Zone 3

USPSPM

USPSPM

USPSPM

USPSPM

USPSPM

USPSPM

USPSPM

USPSPM

USPSPM

USPSPM

FedEx

FedEx

FedEx

FedEx

UPS

Zone 4

USPSPM

USPSPM

USPSPM

USPSPM

USPSPM

USPSPM

USPSPM

USPSPM

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

UPS

Zone 5

USPSPM

USPSPM

USPSPM

USPSPM

USPSPM

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

UPS

Zone 6

USPSPM

USPSPM

USPSPM

USPSPM

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

UPS

Zone 7

USPSPM

USPSPM

USPSPM

USPSPM

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

UPS

Zone 8

USPSPM

USPSPM

USPSPM

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

FedEx

UPS

Zone 9

USPSRG

USPSRG

USPSRG

USPSRG

USPSRG

USPSRG

USPSRG

USPSRG

USPSRG

USPSRG

USPSRG

USPSRG

USPSRG

FedEx

UPS

ABBREVIATIONS

USPSPM - USPS Priority Mail®

USPSRG - USPS Retail Ground™

FedEx - FedEx® Ground

UPS - UPS Ground®

FOR SHADED CELLS, CHECK THESE OPTIONS

USPS Priority Mail Flat Rate® Envelope or Small Box

USPS Priority Mail Regional Rate® Box

USPS Priority Mail Flat Rate® or Regional® Box

USPS Priority Mail Flat Rate® Box

CASE STUDIESNow let’s examine some real-world shipping scenarios derived from ShippingEasy customer data (with

all identifying characteristics removed) to examine actual shipping methods used in 2016 and to learn

what carrier and service make the most sense given the rate changes coming in 2017.

Due to sometimes incomplete customer data*, we have indicated where we made assumptions and/or

where more than one potential option could be cost-effective

The following assumptions apply:

• These are primarily small and medium eCommerce businesses, shipping between 1,000 and 20,000

shipments per month

• We used available 2017 pricing data from each carrier:

| USPS Commercial Plus® Pricing

| FedEx Standard List Rates, including fuel and residential surcharges

| UPS Daily Rates, including fuel and residential surcharges

• Negotiated FedEx or UPS rates may make their services significantly more attractive in some of

these scenarios depending on individual business negotiations

*e.g., no weight provided when a seller used USPS Flat Rate or Regional Rate services

10

JW AUTO

Our first case is derived from a pair of online cosmetics retailers that ship high volumes of primarily

small packages. As you can see, USPS was their most cost-effective option in 2016 and, despite

price increases, will remain so in 2017. It’s interesting to note that in two of the shipments shown

here, the shipper could reap considerable savings by simply taking advantage of USPS Regional or

Flat Rate boxes.

CASE STUDY 1COSMETICS RETAILERS

11

Standard

3 day guaranteed

2-3 day

2 day guaranteed

Overnight guaranteed

Weight or value based

Flat rate

Threshold-based free

Free shipping on every order

CARRIER DELIVERY OPTIONS DELIVERY COSTS

Package Contents

Dimensions (Inches)

Weight

Zone

Carrier & Service

Shipping Cost

Delivery Time

2017 BestCarrier/Service

2017 Best Carrier/Service Pricing

2016-17 EstimatedPrice Change

PackageShipping

Parameters

2016Actuals

2017Forecast

Eyeshadow

Custom Envelope

5 oz

5

USPS FC

$2.60

3 days

USPS FC

$2.77

+17¢

Eyeshadows and lipsticks

8x8x8

1lb

8

USPS PM

$6.95

3 days

USPS PM

$7.04

+09¢

Cosmetics

11x8x5

12 lbs

8

USPS PM

$38.99

2 days

USPS PM MedFlat Rate Box

$12.05

-$26.94

Cosmetics

10x7x4

5 lbs

3

USPS PM

$7.75

2 days

USPS PM RegRate Box A

$6.60

-$1.15

Our second case is derived from a few online apparel retailers that ship high volumes of primarily

small, soft packages (clothing articles). USPS was generally their most cost-effective option in

2016 and, despite price increases, will remain so in 2017. It’s also worth noting that, given the

relative flexibility of packaging apparel, the seller may be able to take advantage of flat or Regional

Rate Boxes with some minor adjustments to the folding and packing of the garments.

Standard

3 day guaranteed

2-3 day

2 day guaranteed



Flat rate




CASE STUDY 2APPAREL RETAILERS

Package Contents

Dimensions (Inches)

Weight

Zone

Carrier & Service

Shipping Cost

Delivery Time




PackageShipping

Parameters

2016Actuals

2017Forecast

Leggings

13x11x5

6 oz

8

UPS First Class

$2.60

3 days

USPS FC

$2.77

+17¢

Sweaters, Scarfs, Mug

13x9x6

6 lbs

2

UPS Ground

$10.70

2-5 days

USPS PM

$7.29

-$3.41

Dress

13x11x3

2 lbs

2

UPS Next Day Air

$34.57

1 day

USPS PME

$21.18

-$13.39

Leggings

13x11x5

2 lbs

8

USPS PM

$10.44

3 days

USPS PM

$9.97

-47¢

Leggings

13x11x5

3 lbs

8

USPS PM

$14.03

3 days

USPS PM*

$14.45

+42¢

*Without knowing the actual product dimensions we can’t say for sure, but these would likely fit into aPM Medium Flat Rate Box which would cost $12.05—offering a savings of $1.98 vs 2016.

12

Our third case is derived from a pair of outdoor equipment vendors that ship high volumes of relatively

large, heavy, dense packages. In these examples, FedEx is often a more attractive option—and it’s

important to note that the 2016 FedEx pricing shown is probably based on negotiated rates which we did

not have access to for our analysis. As noted, the vendors may have some significant opportunities to

reduce costs by optimizing their packaging to allow use of USPS Flat Rate or Regional Rate containers.

CASE STUDY 3OUTDOOR EQUIPMENT RETAILERS

Standard

3 day guaranteed

2-3 day

2 day guaranteed



Flat rate




13

Package Contents

Dimensions (Inches)

Weight

Zone

Carrier & Service

Shipping Cost

Delivery Time




PackageShipping

Parameters

2016Actuals

2017Forecast

Cast iron plate

17x17x5

17 lbs

8

FedEx Ground

$22.76

6 days

FedEx Ground

$26.63

+$3.87

Cast iron plate, smoking accessories

17x17x5

18.8 lbs

5

FedEx Ground

$16.30

2 days

FedEx Ground

$19.06

+$2.76

Steel grate stacker

8x6x3

3 lbs

5

FedEx Ground

$12.46

5 days

USPS PMRegional A

$8.15

-$4.31

BBQ pellets

Large Flat Rate Box

64 lbs

2

USPS PM

$15.85

1 day

USPS PM LargeFlat Rate Box

$16.55

+70¢

BBQ pellets

Reg Rate B Box

10 lbs

5

USPS PM

$10.66

2 days

RegionalRate B Box

$10.95

+29¢

Our fourth case is derived from three online grocers that ship high volumes of relatively dense

packages, often requiring special packaging (for liquids or perishables requiring cold packs).

USPS is generally the best option, often presenting some significant opportunities to reduce costs

by optimizing their packaging to allow use of USPS Flat Rate or Regional Rate containers.

CASE STUDY 4ONLINE SPECIALTY FOODS

Standard

3 day guaranteed

2-3 day

2 day guaranteed



Flat rate




14

Package Contents

Dimensions (Inches)

Weight

Zone

Carrier & Service

Shipping Cost

Delivery Time




PackageShipping

Parameters

2016Actuals

2017Forecast

Preserved meat

Large Flat Rate Box

20 lbs

8

USPS PM

$15.85

2 days

USPS PM LargeFlat Rate Box

$16.55

+70¢

Drink powder packets

10x7x4

5 lbs

1

USPS PM

$7.17

1 day

USPS PM RegRate A Box

$6.52

-65¢

Duck fat

8x6x6

4 lbs

6

USPS PM

$12.97

2 days


$12.05

-92¢

Olive Oil

14x10x6

5 lbs 8 oz

8

FedEx Home

$11.82

2-7 day

USPS PMRegional B*

$20.41

+$8.59

Jar of preserves

8x6x6

3 lbs

8

USPS PM

$14.03

2 days


$12.05

-$1.98

*Seller likely had a negotiated rate with FedEx for 2016 that made FedEx the best option; since we haveno data on clients’ negotiated rates, we are presenting the best generally available option for 2017 here

Our fifth case is derived from online automotive retailers that ship high volumes of relatively

dense, sometimes bulky packages. This case illustrates that when we get into heavier packages

FedEx can sometimes beat USPS, even assuming USPS CPP and FedEx Standard rates (it should

be noted that some of the 2016 UPS and FedEx costs in this example are probably based on nego-

tiated rates). Retailers dealing in larger/heavier packages with decent volumes should explore

potential negotiated rates with UPS and FedEx.

CASE STUDY 5AUTOMOTIVE PARTS

Standard

3 day guaranteed

2-3 day

2 day guaranteed


Actual cost

Flat rate




Package Contents

Dimensions (Inches)

Weight

Zone

Carrier & Service

Shipping Cost

Delivery Time




PackageShipping

Parameters

2016Actuals

2017Forecast

Lightbulbsand covers

Med Flat Rate Box

1 lb

7

USPS PM

$11.60

3 day

USPS PMCustom Box

$6.71

-$4.89

Power steeringpressure hose

12x10x8

6 lbs

7

FedEx Home

$13.74

3 day

FedEx Ground

$16.16

+$2.42

Transmission &engine mounts

12x10x8

10 lbs

4

FedEx Home

$9.58

2 day

USPS PM

$10.88

+$1.30

Water pump

14x9x9

6 lbs

6

UPS Ground

$10.57

3 day

FedEx Ground

$15.53

+$4.96

Water pump

7x6x6

4 lbs

6

UPS Ground

$12.42

5 days


$12.05

-37¢

15

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16

Weight Not Over (Lbs)

0.5

0.5

0.5

1

1

1

2

2

2

3

3

3

4

4

4

5

5

5

Carrier

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

L, 1&2

21.18

26.34

28.02

21.18

29.04

32.55

21.18

30.45

32.91

21.18

32.77

36.22

21.18

35.02

38.74

22.14

35.59

39.51

Zone 3

21.18

30.68

32.49

22.10

38.07

43.90

23.58

40.10

46.60

24.68

42.19

50.12

26.29

44.49

52.83

29.52

44.84

53.63

Zone 4

21.86

37.17

39.06

26.62

51.33

55.68

29.02

57.40

60.43

32.62

63.24

66.48

34.78

68.17

73.90

37.08

72.27

76.42

Zone 5

23.76

39.09

41.35

29.80

55.58

61.89

32.47

61.08

66.16

37.36

67.25

75.03

42.25

73.32

81.77

45.20

79.38

84.55

Zone 6

25.42

39.32

41.37

30.86

59.47

64.94

33.81

66.66

72.95

38.98

70.98

80.39

43.91

79.91

87.49

49.35

84.95

90.66

Zone 7

26.99

41.99

44.73

32.75

63.12

71.23

35.79

69.19

75.84

41.29

75.75

85.46

46.49

82.09

92.48

51.71

87.26

95.10

Zone 8

28.78

43.74

46.60

33.76

65.99

72.81

37.04

73.17

81.15

42.44

79.63

88.35

47.74

86.81

95.79

53.10

91.87

98.50

Zone 9

35.11

49.01

52.78

41.19

68.84

79.39

45.20

76.89

86.66

51.75

83.01

96.28

58.26

90.88

104.76

64.76

97.51

113.05

APPENDIX: OVERNIGHT* RATE COMPARISON TABLE, UP TO 5 LBS

*Rates shown for USPS Priority Mail® Express Commercial Plus Pricing, FedEx Standard Overnight ® Standard Pricingwith residential and fuel surcharges, and UPS Next Day Air® Daily Rates with residential and fuel surcharges

17


6

6

6

7

7

7

8

8

8

9

9

9

10

10

10

Carrier

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

L, 1&2

25.33

37.34

44.21

27.77

38.41

44.68

30.49

40.22

45.06

31.69

41.51

45.58

33.35

41.86

45.94

Zone 3

33.81

50.54

57.47

37.04

52.56

60.47

40.64

53.97

62.09

42.25

56.12

62.48

44.05

58.20

62.93

Zone 4

42.99

79.96

84.25

49.26

85.30

88.23

53.37

90.63

93.21

55.35

95.52

100.46

57.47

98.72

101.44

Zone 5

51.38

84.36

95.79

56.18

91.34

100.28

60.42

97.00

108.88

64.63

102.96

113.20

67.53

108.29

114.07

Zone 6

54.06

91.75

100.00

58.72

97.99

106.80

63.74

104.33

115.97

68.69

110.52

117.05

72.23

113.38

118.71

Zone 7

56.83

93.16

106.87

62.08

99.89

111.36

67.39

106.69

117.70

72.60

113.48

125.48

76.34

119.83

126.64

Zone 8

58.58

98.78

111.30

64.30

105.28

118.63

69.24

111.63

122.20

74.54

118.59

127.72

78.28

125.24

128.92

Zone 9

71.45

105.45

120.95

78.46

111.52

129.26

84.46

117.42

136.23

90.96

125.39

144.76

95.48

132.54

153.70

APPENDIX: OVERNIGHT* RATE COMPARISON TABLES, 6-10 LBS

*Rates shown for USPS Priority Mail® Express Commercial Plus Pricing, FedEx Standard Overnight ® Standard Pricing with residential and fuel surcharges, and UPS Next Day Air® Daily Rates with residential and fuel surcharges

18


11

11

11

12

12

12

13

13

13

14

14

14

15

15

15

Carrier

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

L, 1&2

34.72

44.38

51.35

36.59

45.73

53.31

38.72

46.19

53.98

40.50

47.83

54.82

41.81

49.52

55.19

Zone 3

48.54

60.57

71.90

51.95

63.45

73.83

55.32

66.44

76.43

58.72

68.87

77.15

61.99

71.12

77.53

Zone 4

63.27

106.61

115.72

67.23

112.27

118.23

70.32

117.43

120.80

73.08

123.22

129.77

76.17

127.39

130.67

Zone 5

71.13

116.02

131.42

74.90

121.16

137.37

78.32

126.59

143.42

81.36

131.78

146.77

84.81

136.93

147.45

Zone 6

74.63

124.34

140.83

77.99

130.24

147.45

81.26

135.35

153.28

84.68

140.44

155.51

88.13

144.92

156.04

Zone 7

78.81

127.87

149.70

82.41

134.61

154.08

85.81

141.53

161.99

89.41

147.53

164.96

92.99

152.30

165.62

Zone 8

80.81

133.31

153.10

84.41

140.22

161.19

89.31

146.79

168.73

92.99

153.88

171.09

96.72

159.49

171.62

Zone 9

98.59

141.67

162.10

102.99

146.83

169.81

108.95

153.52

177.27

113.44

161.48

185.06

117.99

167.65

191.49



19


16

16

16

17

17

17

18

18

18

19

19

19

20

20

20

Carrier

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

L, 1&2

43.63

50.47

57.06

45.32

52.85

61.42

47.14

54.31

61.89

48.81

55.66

62.25

50.90

56.62

62.56

Zone 3

65.54

71.74

84.78

68.95

73.99

87.25

72.23

74.78

87.73

75.63

77.78

88.51

79.04

79.97

88.85

Zone 4

79.17

133.28

140.22

82.17

136.94

144.16

85.08

140.95

145.01

87.99

144.22

151.06

92.35

150.39

151.67

Zone 5

88.08

141.84

160.83

91.31

146.28

165.40

94.54

149.24

165.86

97.72

152.30

166.49

102.49

163.79

166.79

Zone 6

91.95

150.20

166.72

95.04

153.60

174.03

98.35

156.89

177.79

101.77

160.34

178.20

105.72

168.73

179.35

Zone 7

96.99

156.15

178.65

100.17

159.61

180.49

103.72

162.95

180.90

107.22

166.52

183.54

111.40

177.35

183.99

Zone 8

99.95

163.46

182.16

102.77

166.87

186.15

106.44

171.22

190.88

109.99

175.59

192.38

114.90

181.48

193.18

Zone 9

121.95

171.78

198.91

125.35

175.61

203.23

129.86

179.73

208.16

134.17

186.08

214.95

140.17

197.01

219.09



20


0.5

0.5

0.5

1

1

1

2

2

2

3

3

3

4

4

4

5

5

5

Carrier

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

L, 1&2

5.75

20.77

21.08

5.75

20.77

21.33

6.33

21.06

21.62

6.41

21.35

21.92

6.62

21.88

22.46

6.96

22.41

23.00

Zone 3

6.26

21.47

21.78

6.26

21.47

22.04

6.40

21.82

22.41

7.16

22.41

23.00

7.39

23.04

23.66

7.77

23.68

24.30

Zone 4

6.37

22.22

22.56

6.37

22.22

22.81

6.63

22.58

23.18

7.62

23.68

24.30

8.46

25.30

25.98

8.91

27.16

27.88

Zone 5

6.53

24.65

24.49

6.53

24.65

24.90

7.91

26.01

26.32

9.22

28.25

28.59

10.19

32.33

32.70

10.62

35.46

35.79

Zone 6

6.66

29.15

28.77

6.66

29.15

29.67

8.91

31.83

32.41

11.46

36.00

36.64

13.36

40.98

41.70

15.21

45.31

46.11

Zone 7

6.71

30.55

30.08

6.71

30.55

31.09

9.69

34.59

35.20

12.39

39.44

40.15

15.13

44.48

45.27

17.39

49.11

49.98

Zone 8

7.04

31.08

30.45

7.04

31.08

31.63

9.97

36.17

36.81

14.45

40.91

41.64

17.08

46.02

46.83

19.80

51.81

52.72

Zone 9

9.59

45.05

42.10

9.59

45.05

45.35

14.69

49.83

50.17

19.92

56.34

56.71

23.99

59.78

60.15

27.86

64.62

65.03

APPENDIX: SECOND DAY* RATE COMPARISON TABLES, UP TO 5 LBS

*Rates shown for USPS Priority Mail® Commercial Plus Pricing, FedEx 2Day® Standard Pricing with residential and fuel surcharges, and UPS 2nd Day Air® Daily Rates with residential and fuel surcharges

21


6

6

6

7

7

7

8

8

8

9

9

9

10

10

10

Carrier

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

L, 1&2

7.29

23.22

23.83

7.60

24.03

24.62

7.96

24.84

25.44

8.32

25.95

26.58

8.82

26.99

27.65

Zone 3

8.18

24.43

25.08

8.59

26.41

27.06

9.00

28.44

29.14

9.57

29.53

30.26

9.97

31.23

31.99

Zone 4

9.26

29.25

29.96

9.60

31.40

32.16

10.64

33.32

34.13

10.75

35.69

36.56

10.88

38.13

39.06

Zone 5

13.23

38.37

38.73

14.68

41.56

41.94

15.87

44.98

45.39

16.96

48.00

48.43

18.24

51.02

51.47

Zone 6

17.06

49.93

50.81

18.89

55.68

56.66

20.77

61.19

62.25

22.59

66.22

67.22

24.41

70.43

71.66

Zone 7

19.83

54.15

55.10

22.36

59.67

60.58

24.61

65.34

66.34

26.66

71.26

72.34

29.30

77.18

78.34

Zone 8

22.67

56.37

57.36

25.46

61.71

62.78

28.59

67.51

68.68

31.79

73.72

74.82

34.57

79.41

80.78

Zone 9

31.92

68.47

68.89

35.84

73.49

73.93

40.24

76.99

77.44

44.75

82.12

82.61

48.66

88.75

89.27

APPENDIX: SECOND DAY* RATE COMPARISON TABLES, 6-10 LBS


22


11

11

11

12

12

12

13

13

13

14

14

14

15

15

15

Carrier

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

L, 1&2

9.99

28.03

28.72

10.52

29.31

30.03

11.00

31.11

31.87

11.48

32.45

33.23

11.87

33.54

34.36

Zone 3

11.57

32.67

33.46

12.23

34.36

35.19

12.84

35.92

36.80

13.48

37.60

38.52

14.13

38.42

39.36

Zone 4

13.40

39.70

40.66

14.08

41.67

42.69

14.66

43.12

44.18

15.31

45.67

46.79

15.96

47.70

48.87

Zone 5

19.43

54.27

54.74

20.74

57.11

57.60

21.83

60.30

60.82

23.03

63.55

64.09

24.06

65.86

66.41

Zone 6

26.19

75.72

76.85

28.55

81.27

82.49

30.66

86.31

87.61

32.38

91.35

92.71

33.63

95.98

97.40

Zone 7

31.89

82.45

83.68

34.48

88.13

89.46

35.88

92.23

93.61

37.89

96.86

98.30

38.61

100.97

102.47

Zone 8

37.45

85.73

87.01

40.16

91.35

92.71

41.58

96.46

97.89

43.65

100.62

102.11

44.81

105.00

106.56

Zone 9

53.17

93.83

94.38

57.01

97.09

97.65

59.04

100.39

100.98

61.97

104.18

104.78

63.60

108.80

109.41



23


16

16

16

17

17

17

18

18

18

19

19

19

20

20

20

Carrier

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

L, 1&2

12.32

34.24

35.08

12.65

35.17

36.02

12.87

36.22

37.10

13.14

37.49

38.40

13.60

38.65

39.59

Zone 3

14.87

39.58

40.54

15.52

40.63

41.62

15.94

41.84

42.86

16.35

42.89

43.93

16.65

44.56

45.65

Zone 4

16.80

49.63

50.82

17.52

51.59

52.84

18.27

53.33

54.63

18.71

54.79

56.11

19.14

56.75

58.13

Zone 5

25.15

67.88

68.45

26.26

70.95

71.38

27.33

73.26

73.87

28.05

76.10

76.73

28.59

79.46

80.12

Zone 6

35.54

100.03

101.51

37.35

104.36

105.91

39.31

108.52

110.13

41.08

112.34

113.99

42.13

116.20

117.92

Zone 7

40.77

105.95

107.52

42.90

111.39

113.03

45.00

116.13

117.85

47.11

121.29

123.08

48.86

125.33

127.18

Zone 8

47.27

109.28

110.90

49.76

114.20

115.89

52.26

120.65

122.44

54.75

124.51

126.36

57.28

129.02

130.92

Zone 9

67.10

113.11

113.75

70.63

118.32

118.98

74.20

125.12

125.82

77.71

129.08

129.80

81.30

133.51

134.25



24


1

1

1

2

2

2

3

3

3

4

4

4

5

5

5

Carrier

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

L, 1&2

5.75

11.12

11.09

6.33

11.87

11.87

6.41

11.99

12.01

6.62

12.25

12.27

6.96

12.29

12.31

Zone 3

6.26

11.78

11.80

6.40

12.48

12.54

7.16

12.84

12.91

7.39

13.06

13.13

7.77

13.14

13.21

Zone 4

6.37

12.00

12.03

6.63

13.17

13.26

7.62

13.68

13.80

8.46

14.14

14.29

8.91

14.52

14.68

Zone 5

6.53

12.36

12.41

7.91

13.36

13.47

9.22

13.97

14.11

10.19

14.60

14.77

10.62

15.01

15.24

Zone 6

6.66

12.66

12.72

8.91

13.77

13.90

11.46

14.38

14.56

13.36

14.91

15.13

15.21

15.27

15.54

Zone 7

6.71

12.77

12.85

9.69

13.98

14.12

12.39

14.74

14.94

15.13

15.43

15.69

17.39

15.86

16.18

Zone 8

7.04

12.91

13.00

9.97

14.26

14.44

14.45

15.35

15.60

17.08

16.17

16.48

19.80

16.78

17.16

Zone 9

9.59

32.70

32.89

14.69

35.93

35.80

19.92

38.72

38.72

23.99

42.13

42.37

27.86

45.35

45.65

APPENDIX: GROUND* RATE COMPARISON TABLES, UP TO 5 LBS

*Rates shown for USPS Priority Mail® Commercial Plus Pricing, FedEx Ground® Standard Pricing with residential and fuel surcharges, and UPS Ground® Daily Rates with residential and fuel surcharges

25


6

6

6

7

7

7

8

8

8

9

9

9

10

10

10

Carrier

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

L, 1&2

7.29

12.58

12.62

7.60

13.06

13.10

7.96

13.23

13.26

8.32

13.50

13.53

8.82

13.72

13.71

Zone 3

8.18

13.40

13.48

8.59

13.63

13.71

9.00

13.87

13.94

9.57

14.11

14.14

9.97

14.15

14.16

Zone 4

9.26

14.65

14.82

9.60

14.84

14.99

10.64

15.02

15.16

10.75

15.16

15.29

10.88

15.34

15.41

Zone 5

13.23

15.23

15.49

14.68

15.48

15.75

15.87

15.69

15.99

16.96

15.79

16.08

18.24

16.12

16.44

Zone 6

17.06

15.54

15.83

18.89

15.75

16.05

20.77

16.11

16.44

22.59

16.37

16.72

24.41

16.75

17.13

Zone 7

19.83

16.16

16.49

22.36

16.48

16.84

24.61

16.87

17.25

26.66

17.41

17.83

29.30

18.20

18.68

Zone 8

22.67

16.88

17.26

25.46

17.38

17.80

28.59

17.84

18.29

31.79

18.71

19.22

34.57

19.70

20.27

Zone 9

31.92

48.62

48.66

35.84

51.64

51.83

40.24

52.49

52.92

44.75

55.91

56.41

48.66

59.16

59.72

APPENDIX: GROUND* RATE COMPARISON TABLES, 6-10 LBS


26


16

16

16

17

17

17

18

18

18

19

19

19

20

20

20

Carrier

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

L, 1&2

12.32

15.02

15.11

12.65

15.22

15.32

12.87

15.24

15.34

13.14

15.29

15.39

13.60

15.44

15.56

Zone 3

14.87

15.83

15.96

15.52

16.31

16.46

15.94

16.47

16.64

16.35

16.69

16.87

16.65

16.92

17.11

Zone 4

16.80

16.09

16.23

17.52

16.36

16.51

18.27

16.72

16.90

18.71

16.75

16.93

19.14

17.19

17.40

Zone 5

25.15

17.61

18.00

26.26

18.13

18.55

27.33

18.82

19.30

28.05

19.06

19.55

28.59

19.81

20.35

Zone 6

35.54

20.10

20.70

37.35

20.94

21.60

39.31

21.63

22.34

41.08

22.00

22.73

42.13

22.79

23.57

Zone 7

40.77

23.61

24.45

42.90

24.81

25.74

45.00

25.25

26.21

47.11

25.84

26.84

48.86

26.67

27.72

Zone 8

47.27

25.59

26.57

49.76

26.63

27.69

52.26

27.74

28.86

54.75

28.55

29.72

57.28

29.69

30.95

Zone 9

67.10

75.19

76.07

70.63

78.24

79.17

74.20

81.32

82.31

77.71

84.36

85.42

81.30

87.06

88.16


11

11

11

12

12

12

13

13

13

14

14

14

15

15

15

Carrier

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

USPS

Fedex

UPS

L, 1&2

9.99

14.14

14.15

10.52

14.31

14.33

11.00

14.56

14.59

11.48

14.83

14.88

11.87

14.89

14.94

Zone 3

11.57

14.56

14.59

12.23

14.89

14.94

12.84

15.15

15.21

13.48

15.46

15.54

14.13

15.71

15.80

Zone 4

13.40

15.45

15.53

14.08

15.55

15.63

14.66

15.70

15.79

15.31

15.82

15.92

15.96

15.98

16.08

Zone 5

19.43

16.32

16.65

20.74

16.49

16.84

21.83

16.73

17.09

23.03

16.92

17.29

24.06

17.52

17.94

Zone 6

26.19

17.32

17.73

28.55

17.53

17.96

30.66

18.23

18.71

32.38

18.91

19.43

33.63

19.59

20.17

Zone 7

31.89

19.41

19.96

34.48

20.02

20.62

35.88

21.17

21.85

37.89

22.25

22.99

38.61

22.81

23.59

Zone 8

37.45

20.74

21.39

40.16

21.69

22.41

41.58

22.85

23.64

43.65

23.94

24.81

44.81

24.96

25.89

Zone 9

53.17

62.09

62.71

57.01

64.59

65.27

59.04

67.10

67.83

61.97

69.72

70.50

63.60

72.14

72.95

APPENDIX: GROUND* RATE COMPARISON TABLES, 11-20 LBS


27

ASSUMPTIONSThis analysis focuses on shipping situations most often encountered by small- and

medium - sized businesses. Therefore, special situations such as international shipping,

hazardous materials shipping, and early morning delivery were not analyzed.

LIMITS• USPS only accepts packages with a combined length and girth of 108" or smaller;

this analysis does not consider packages dimensionally larger than this

- Both FedEx Home Delivery and UPS services allow packages up to 108" in

length and up to 165" in combined length and girth

• Only UPS and Fedex will handle packages between 70 and 150 pounds—USPS will not

• Only UPS will handle packages over 150 pounds

• If you are shipping multiple products with a total weight greater than 70 pounds,

you should look into the possibility of breaking the shipment into two or more

packages: shipping multiple packages of 70 or fewer pounds each via USPS is

generally less costly than shipping one package of the total weight by UPS or FedEx

28

ASSUMPTIONS• There are many ways to obtain USPS Commercial Plus® Pricing (for example, all ShippingEasy customers with paid accounts automatically receive it), so we’ve used this pricing level for USPS 2017 pricing in our models.

• FedEx and UPS typically negotiate specific pricing with each of their clients based on a number of criteria. Since we can’t know what your negotiated rates with these carriers may be, we have used their lowest published 2017 rates (UPS Daily and FedEx Standard List) in our models. If you use one of these carriers and have negotiated lower rates, you should double check your rates for the specific situations where we rate USPS as being a better deal.

• FedEx and UPS both apply various surcharges; we considered the following to be relevant to our analysis and included them:

– Residential surcharge: a flat fee per package applied to deliveries to households. We used:

• The FedEx residential surcharge of $3.85, effective as of January 2, 2017

• The UPS residential surcharges of $3.40 (Ground) and $4.00 (Overnight and2-day), effective as of December 26, 2016

– Fuel surcharge: a percentage upcharge applied to every package which changes periodically based on a number of factors. We used:

• The FedEx fuel surcharge of 2.25%, the charge which will be in effect through December 4, 2016

• The UPS fuel surcharge of 4%, the charge which will be in effect through December 5, 2016

• FedEx and UPS both offer delivery services in collaboration with USPS (UPS SurePost® and Fedex SmartPost®). Because these services have prerequisites that make them less attractive for smaller sellers, we have omitted them from our analysis.

29

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