USPS vs FedEx for Ecommerce
The ecommerce seller's guide to choosing between USPS and FedEx
Side-by-Side Comparison
| Category | USPS | FedEx | Winner |
|---|---|---|---|
| Cost per order (avg 1-2 lbs) | $4-6 | $10-15 | USPS |
| Commercial/Platform Rates | Available via shipping platforms | Available via shipping platforms | Tie |
| Free Packaging | Free Priority Mail boxes | No free packaging | USPS |
| Returns Handling | Scan-based return labels | FedEx Returns program | Tie |
| Residential Delivery | No residential surcharge | Residential surcharge applies | USPS |
| Delivery Notifications | Informed Delivery (email) | FedEx Delivery Manager (detailed) | FedEx |
| Platform Integration | Shopify, eBay, Etsy, Amazon | Shopify, eBay, Amazon, WooCommerce | Tie |
| Branded Tracking Experience | Basic | FedEx branded tracking page | FedEx |
When to Use Each Carrier
USPS
- Small and medium ecommerce businesses
- Orders averaging under 5 lbs
- Sellers prioritizing low shipping costs
- Products going to residential addresses
FedEx
- Premium brands wanting polished delivery experience
- Heavy or oversized products
- Sellers offering expedited shipping options
- High-volume sellers with negotiated FedEx discounts
Detailed Breakdown
For ecommerce sellers, shipping cost is often the single biggest variable expense after product cost. Since the average ecommerce order weighs 1-3 lbs, USPS is the default choice for most online sellers because it is 40-60% cheaper than FedEx for lightweight packages. USPS also does not charge residential delivery surcharges, which is important since most ecommerce orders go to homes. FedEx charges $4-6 extra per package for residential delivery, a hidden cost that significantly increases the per-order expense. Where FedEx earns its place in an ecommerce shipping strategy is for heavier products, premium shipping options, and the overall delivery experience. FedEx Delivery Manager gives recipients more control over their deliveries, and the tracking experience feels more polished. Many successful ecommerce businesses use a multi-carrier approach: USPS for standard lightweight orders, FedEx or UPS for heavy items and expedited shipping. Platforms like I'd Ship That make it easy to compare rates across carriers for each order and automatically choose the cheapest option.
Frequently Asked Questions
Most small to medium ecommerce sellers primarily use USPS because the majority of orders are lightweight and USPS offers the lowest rates. According to industry surveys, over 60% of ecommerce packages in the US are shipped via USPS. Larger sellers often use a mix of USPS, FedEx, and UPS to optimize cost per package.
Yes, FedEx charges a residential delivery surcharge of approximately $4-6 per package for FedEx Ground deliveries to homes. This surcharge applies automatically based on the destination address. USPS does not charge residential surcharges, which is one of the main reasons it is cheaper for ecommerce orders going to homes.
Free shipping increases conversion rates, but you need to account for the cost in your product pricing. Using USPS for fulfillment helps keep free shipping viable since costs are $4-6 per lightweight package. A common strategy is offering free shipping on orders over a minimum amount and building a portion of shipping cost into your product price.
Use a shipping platform like I'd Ship That to access commercial rates, which are 20-40% below retail post office or carrier store prices. Always compare rates across USPS, FedEx, and UPS for each shipment since the cheapest option varies by weight, size, and destination. For most orders under 5 lbs, USPS commercial rates through a platform will be your cheapest option.
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