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USPS vs UPS

By Tom Wicky

USPS vs UPS? Shipping goods to customers is (hopefully) the final step in an eCommerce supply chain, but with multiple shipping carriers available, it can be difficult to choose one to deliver your orders. UPS (United Parcel Service) and USPS (United States Postal Service) are two of the largest options in the U.S and part of the big four: USPS, Amazon Logistics, UPS, FedEx.

While each moves goods from one destination to another, the specific services they offer and their approaches to shipping and packaging differ. However, that makes it generally easy to compare the two and decide whether USPS vs UPS is the better fit for your eCommerce store.

USPS vs UPS

USPS vs UPS are both carrier giants, but each has different specializations for direct-to-consumer fulfillment.

USPS

In 2023, USPS moved 6.6 billion packages domestically, making them the largest parcel carrier in the country. That also earned them a market share of 31% and a parcel revenue of $31.7 billion.

USPS stands out for their high level of service across America and their focus on budget shipping rather than premium solutions:

  • Parcel postage is normally cheaper through USPS than UPS.
  • They’re the only U.S. carrier that can deliver to P.O. boxes.
  • They boast 21 postage options, including next day, priority, and ground.
  • Package postage starts at $5.

UPS

Meanwhile, UPS moved 4.6 billion parcels in 2023, which secured them a 21% market share. However, they had the largest parcel revenue at 35% of the market. UPS focuses on offering premium services like next-day and early delivery at a higher rate than USPS:

  • They specialize in next-day, two-day, and three-day shipments.
  • Parcel postage is faster with multiple quick delivery options.
  • Customers tend to pay more but enjoy higher-level service.
  • The carrier has nine national and 15 international delivery options.

How USPS vs UPS rates stack up

Generally, in the USPS vs UPS comparison UPS is cheaper than USPS for larger packages. However, rates can vary considerably depending on where you ship from and to, parcel weight, your desired speed, and other criteria. For instance, it costs less to ship with USPS up until you need two-day shipping, at which point UPS becomes the better choice.

The following rates are pulled from the 2024 rate cards for USPS and UPS:

  • USPS Ground Advantage: This offers a two- to five-day delivery time in most of the U.S. and starts at $3.79 for commercial pricing.
  • UPS Ground: UPS starts at $10.70. However, that includes a guaranteed transit time of five or fewer days, plus tracking.
  • USPS Priority Mail: Priority Mail is normally delivered within one to three days, but that’s not guaranteed. Commercial pricing starts at $7.90, and flat-rate priority envelopes are available from $8.50.
  • UPS 3 Day Select: As the name suggests, this option offers guaranteed delivery within three days, as well as tracking. Rates start at $15.25.
  • USPS Priority Mail Express: Priority Mail Express offers a guaranteed one- to two-day delivery timeline with tracking. Rates start at $26.35 for commercial postage.
  • UPS 2nd Day Air: This option promises delivery in one to two business days, along with tracking. Rates start at $24.07 for deliveries. Keep in mind though, you’re unable to ship many hazardous materials using this method, such as more than five pounds of dry ice. Meanwhile, the 2nd Day Air for A.M. delivery option charges a minimum of $26.68.
  • UPS Next Day Air Saver: Compared to the standard Next Day Air’s $40.40 postal minimum, UPS Next Day Air Saver starts at $36.79. However, the former option guarantees delivery by 10:30 A.M. the morning after shipping while the latter aims for 3:00-4:30 PM for commercial addresses. It also provides no time guarantees for residential addresses.

Postage services: USPS vs UPS

Besides shipping rates, you need to look at any other postage services and accommodations you’ll require. Here’s how USPS vs UPS compare regarding some important shipping considerations:

  • Weight limits: UPS has a weight limit of 150 pounds on all normal postage. If a parcel exceeds that number, you’ll have to switch to freight rates. Noticeably, USPS has a weight limit of just 70 pounds.
  • Insurance: You can insure UPS or USPS packages up to $50,000 by declaring the value and paying an additional fee. Through USPS, this is called “Registered Mail” and starts at $10 on top of the cost of postage. UPS, meanwhile, automatically insures packages for up to $100 in the U.S., but you’ll have to declare value and purchase a coverage plan. So, if you want to insure a parcel for $100, UPS Ground is cheaper than USPS Ground at $13.79 (using commercial rates with insurance).
  • Tracking: UPS offers stellar tracking with last-mile and door-to-door monitoring for customers. Conversely, USPS tracking is only available for parcels sent through Priority and Registered Mail (UPS includes tracking for all packages).
  • Fast delivery: UPS wins on fast delivery in terms of pricing and tracking (see previous section).
  • Hidden fees: UPS is more likely to charge hidden fees like handling or pickup from remote locations, whereas USPS does not.
  • International services: Both carriers offer international services, but UPS’s repertoire is larger, including more rate options and the ability to charge the customer up front for customs so products aren’t tied up in red tape.

When to choose USPS vs UPS

Both UPS and USPS are great postal carriers that can fit well into your eCommerce business model. However, you’ll need to review their specialties to make the best decision as to wether to pick between USPS vs UPS:

  • If you want affordable and reliable delivery that, on average, works exactly how you expect it, USPS is the way to go. Aim to keep boxes no heavier than 13 pounds and expect delivery times of about five days. To secure the best rates, work with a 3PL that can negotiate better commercial prices for you.
  • UPS offers the best one- and two-day shipping options and is a top choice if you want tracking for all orders. Further, if you have to insure your deliveries, UPS is cheaper for ground delivery than USPS.

The verdict? Go with USPS for cheap and simple postage. If you need tracking, insurance, or anything more complex though, opt for UPS instead.

Wrapping up — Solidify your fulfillment with the right carrier

You’ll find excellent service with either USPS vs UPS. Depending on your store, you might not even want to stick to one exclusively. To take advantage of both carriers’ perks, work with a 3PL that can negotiate contracts for affordable direct-to-consumer fulfillment and then select the right carrier for each order at the time of pick and pack.

This approach will save you on logistical expenses while giving your store greater freedom to choose last-mile delivery solutions that best fit the customer and their order. In addition, with multiple carriers, you can let buyers opt for more premium shipping on demand and thus provide a better customer experience.