Thursday, February 22, 2007

Comparing USPS, UPS, and FedEx Shipping Fees.

One helpful way to make money selling on Ebay, is to avoid some of the costs of working in an online business. As you start selling on Ebay, you also have to start shipping packages to your customers. There are several providers out there, USPS, UPS and FedEX seem to be the shipping providers that are the most accessible, depending on your area.

01/31/2008 Update: Find out other ways to save money shipping eBay and Amazon orders with a Thermal Printer

Now the tricky part comes with choosing a shipping provider. I created a table for your use in comparing shipping prices for USPS, UPS, and FedEX for their parcel post and ground shipping options (at the bottom of page)

There are programs that cost 15.00 a month for this kind of information. I am such a nice guy I will gladly give it to you for free!

USPS Parcel post will deliver your package in 8 days
UPS Ground will deliver your package in 5 days
FedEx Ground also delivers in 5 days

When choosing a shipper, you should consider the weight of the packages you ship:

  • If you are shipping packages that weigh under 3 pounds, or can fit in a fixed rate box or envelope, you should definitely ship with USPS.
  • After 3 pounds, you should go with FedEx, as they become considerably cheaper.
  • If there is not an available FedEx in your area, you should ship with the USPS for up to 6 pound packages.
  • From 6 pounds to 25 pounds it is cheaper to ship with UPS ground then USPS.
  • And above 25 pounds, if you do not have access to a FedEx it is cheaper to switch back to using the USPS.
I hope this information helps you in your shipping quest.
Update: I added the spreadsheet below to let you better visualize the savings.

Price Comparison Spreadsheet

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