I think I've read every post going back 2 years on UPS and FedEx. I'm trying to decide between the two, and I'll be using ground (residential) most often for light packages measuring 14x14x14 and smaller, mostly. Some posts say FedEx is cheaper and some say UPS, some complain about how their packages are treated with FedEx and others with UPS. Every day the UPS guy is up and down my street, I rarely see FedEx, so not sure if UPS has a much bigger presence.

But taking just the cost into effect, is there any way to directly compare general ground prices? Or is this something that is usually negotiated? I can obviously go to each of their websites, enter identical package information and see which is cheaper, but not sure if this is accurate when you're running a business. I've heard both companies give you a break depending on how many shipments you're making, but I'm a startup business so I'm not going to have much bargaining except that I want to use one exclusively. Any advice?

I want to be able to have an account, print invoices here at home, and drop off the packages myself - whatever the cheapest way possible is!

Also, I've noticed a lot more 'UPS-real time shipping is down' posts than FedEx.

Bama...

its hard to say, honestly. even other users here will argue which one is cheaper, faster, better service, etc.

Do you offer free shipping on your products?

We currently use UPS & USPS. USPS is by far the cheapest for small light packages (mostly under 2 pounds)... yes that might change in the next week (when rates go up), but UPS rates go up ever so slightly each month.

We get a great discount from UPS, but that is all based upon volume, things like that.

As far as USPS, we don't get any "discount" per say, but by switching most of our packages to USPS, we have saved on average $2k per month for the last year. Also, we use Endicia and they bill the postage to our credit card, and we get miles, and cash back through the credit card. UPS bills weekly, just send them a check.

Fedex is good service as well. I dont see their ground trucks too much in our area (see the express truck every morning though). I have had one supplier who used to send out everything Fedex ground, until the ground contractors had a strike and caused all these late shipments.

Hope i've helped

I'll be offering free shipping on items over $100, to match my competitors. Also, one of my competitors (not an MC cart) offers FedEx shipping $5.95 up to $50, $8.95 from $50 to $99, and free over $100. I would love to do this, as it would be so much easier than figuring weight on 550 items, but I don't know how they do it, we're selling some of the exact same things and when I calculate on FedEx's site, it's always twice as much. Then there's the box and packaging cost and weight....The markup on these products isn't enough to take a hit like that on shipping, but obviously it works out for them somehow. They also use usps.

When I calculate the same exact package size and weight on UPS and FedEx sites, UPS comes up more expensive. If I do a 12x12x12 package at 4 lbs going to a residence, for FedEx it's $12.24 and for UPS it's $14.40. (only $10.90 usps) I've tried this with all kinds of different weights and sizes, fedex always comes up cheaper.

Also, I've been reading posts here about customers claiming they didn't get the package and chargebacks, and I'd like to the the option of being able to get tracking. Maybe this doesn't happen that often, I don't know. But this is why I've been shying away from usps, although I suppose I could get delivery confirmation or signature through them as well. Seem like mail fraud would happen a lot more with usps than with the others. But I could be way off-base with that assumption.

Bama... it really depends what rates they are showing you. Those UPS rates that you are quoting seem like retail rates (rates when you drop off at the UPS store) etc.

14.40 is way expensive. I don't think I've ever shipped a 4 lb box that costs that much for ground (except to Hawaii & Alaska)

There are horror stories with the USPS - don't get me wrong. But the 1 year that we have been shipping with them, they have lost a total of 34 boxes. We pay for insurance through a 3rd party insurance. All we need to do is pay for delivery confirmation, and the insurance is 35 cents per 100 bux (based upon our volume). We also use the 3rd party insurance for UPS, and its 17 cents per 100 bux (also, based upon our volume)

At least with the post office, you can get some free priority boxes (7x7x6 and 12x12x8).

I would really call a UPS sales rep & a fedex sales rep and try and get some real pricing. Its hard to go from their websites, because if you get it setup right, you will be using worldship or fedex shipper right from your desktop. That right there qualifies you for a discounted rate.

Great advice, I'll give both companies a call and see what they say, Thanks!