FedEx vs. USPS
One of the most common decisions small business owners have to make is which shipping carrier to use. FedEx and USPS are great options, but it can be hard to decide which is right for your business. In this blog post, we’ll compare FedEx and USPS so you can make an informed decision.
In the world of shipping, FedEx and USPS are often mentioned together as major shippers. But there are a lot of differences between these two companies, based on their different business models.
Reputation
FedEx is one of the most reputable companies globally, while USPS is not so much known for its good reputation. It has been named “Worst Government Agency” by The USA Today newspaper nearly every year since 2000. Aside from the bad reputation, USPS is also known for having poor services and products because of its inefficient management and low-quality employees.
On the other hand, FedEx has a good reputation in the industry. For example, it has been named “Most Reputable Company” by Forbes magazine for several years now, while USPS never made it to that list before.
FedEx consistently makes it to America’s Most Admired Companies (top 20) list, while USPS not once made it on that prestigious ranking list. The same goes with Fortune 500; FedEx was ranked 44th while USPS did not make it on that elite listing this year or last year.
Service Features
USPS has another identity: It is also one of the biggest shipping companies in the world. However, its services and products do not match FedEx’s.
FedEx is known for its industry-leading overnight and express services, while USPS has a combination of fast and slow delivery options and methods. Meanwhile, USPS offers package pickup wherein customers would have to go to their local post office to pick up their ordered items themselves.
FedEx does not provide such service because it believes that this practice will compromise security and safety standards.
USPS also operates its own fleet of trucks, but only 13% of them are properly maintained, according to national transportation board data from 2008–2014. This poses safety risks for employees and customers who regularly use USPS shipping services.
Cost/Price Structure
USPS has a postal rate calculator that customers can use to determine the amount they need to pay for a certain weight and size of a package. However, this tool may not be as accurate as those used by FedEx because USPS’ rates are usually based on an average calculation instead of being based on the actual size and weight of the items shipped.
On the other hand, FedEx calculates its shipping fees based on actual measurements of packages in length, width, height, and total volume. This makes it much easier for customers to know which shipper charges cheaper rates without having to rely on USPS’ online postal rate calculator or even contacting customer service representatives just so they can find out how much a specific item would cost them to ship.
Quality of Employees
USPS pays employees an average of $20 per hour plus benefits and even bonuses when they meet their sales targets through package deliveries. One drawback for this working arrangement is that these incentives cause postal workers (most of whom lack college degrees) to dedicate less time to customer service and more time to package delivery.
On the other hand, FedEx pays its employees an average of $32 per hour (including benefits) and provides incentives for meeting sales goals. This firm has a better-educated staff with many employees holding master’s degrees or PhDs. As such, FedEx customers receive much friendlier and more efficient customer service compared to customers who use USPS’ services and products.
Shipping and Delivery Speed
USPS vehicles are not as well-maintained compared to FedEx vehicles which means that the former often gets stuck in traffic and spends more time on the road than it should. USPS vehicle capacity is smaller than FedEx does not help either since the average package would require only one trip for delivery by FedEx. At the same time, it would take two or more deliveries just so USPS could deliver packages using its fleet.
FedEx has a wide network of ground and air transportation assets, including about 647 planes. As such, customers who use this company’s services experience fast and efficient packaging and even for items that need to be shipped overnight, which is why USPS often charges higher rates compared to FedEx even for the same service.
Conclusion:
When it comes to choosing between FedEx and USPS, it’s important to weigh various factors affecting the firm’s performance so that customers can pick the shipper that can provide them with better transport services at cheaper rates. Both companies have their own strengths and weaknesses. Still, when it boils down to being cost-effective, faster in terms of delivery speed, and highly reliable in terms of package deliveries regardless of what time these items need to be transferred from one point to another, then.
At the same time, both firms are good options; FedEx remains the preferable choice due to its better operating system and highly-efficient transportation assets.
