The rates among UPS, FedEx, DHL, and USPS for shipping in
the United States are pretty comparable. Every company seems
to be getting a little bit more competitive and trying harder.
They all want a bigger piece of the huge eBay shipping pie,
which has turned into a very big business. Who knew that eBay
would not only make a ton of money itself, but would also yield
such huge windfalls to the shipping companies? A few years ago,
you would have been very smart to buy both eBay and UPS
stock.
When choosing among these companies, it basically comes
down to which one you prefer working with. I hear so many different
comments about each company. Some people love UPS,
and others hate it with a passion. Some sellers swear by the
USPS, and others would rather not use the postal service. FedEx
is an up-and-coming shipper for regular ground service and has
a stellar reputation for overnight service. DHL (previously
called Airborne Express) is giving all the other companies a run
for their money in the international marketplace. The choice is
really up to you. You may want to try them all before making
your decision. Ship a few packages with each carrier and keep
track of all the costs and benefits, and then make your decision.
You may end up using a combination of two or three. I
use a combination of UPS and USPS.
UPS
UPS is my carrier of choice. Sure, I��ve heard the horror stories
about how a package can arrive looking like a gorilla stepped on
it, but you know what? I pack my items really well, and we rarely
have breakage. When we do have breakage, UPS is quick to pay
a claim as long as the box was packed according to its requirements:
As mentioned before, two inches of foam packing peanuts
on all sides of your item, and your item should be double-boxed
or wrapped in bubble wrap first.
�� Pros: Daily pickup from my home, which costs between $8
and $12 per week depending upon your shipping volume.
UPS will stop by daily even if you don��t have anything sitting
out in your designated pick-up area. Your shipment is
automatically insured for up to $100 for each package.
UPS has great software that actually e-mails your customer
his or her tracking information. A free tracking number
provided automatically. UPS is really great to deal with for
breakage; they pay claims immediately.
�� Cons: Not as fast as USPS or FedEx, but they are working
on it. Shipments take typically five working days from coast
to coast. Not available for shipments to Hawaii, Alaska,
Canada, and Mexico, unless you go air (very expensive).
It��s too expensive for most other international shipments,
and UPS always requires complicated customs forms��
your international customers won��t go for this. UPS
charges by volume weight or actual weight, whichever is
larger. (On the UPS input screen, you��re asked to enter the
dimensions of your package if it��s very large. Let��s say that
your package only weighs one pound, but the dimensions
are 20″ by 20″ by 20.” UPS will charge you a volume weight
of 30 pounds, because they take into consideration how
much space it will take up in their trucks. I learned this
lesson the hard way.)
USPS
I ship smaller items in the USPS flat-rate cardboard Priority
mailers. The postage is just $3.85 and is perfect for heavy books,
paper items, and DVDs. I also use USPS for all my international
packages and packages to Alaska and Hawaii. Their rates are
fair, and USPS doesn��t ask for a whole bunch of customs forms
the way UPS, FedEx, and DHL do. USPS does ask for one simple
form per international shipment, not the multiples that are
generated when you do a shipment with one of the other carriers.
Maureen goes to the post office about once or twice a week,
and we try and coordinate our shipments so that we don��t wait
in line with fewer than ten packages.
The USPS will pick up for free in some areas when they are
delivering your mail. You can request this service online. They
will only pick up domestic Overnight and Priority shipments,
and the postage must already be on the box. If you make a mistake
in calculating postage, your item will come back to you and
cause a major delay. The USPS will also pick up some international
shipments if you choose Global Express. This is very
expensive.
�� Pros: Free boxes if you are shipping Priority Mail, which
is a huge money-saver. Quick service (two to three days
across the United States); in fact, by the time I get ready to e-mail a customer that her shipment has gone out, it
has already arrived! Best choice for international shipments.
First Class and Media Mail can also be cheap alternatives
for your customers.
�� Cons: USPS will pick up from you only if you call or schedule
the pickup online, and it is only free if the carrier
shows up for your regular mail delivery. If you want them
to pick up at a specific time it will cost you $12.50 per
pickup. Also, if your package weighs more than 16 ounces,
your return address must be the address it was picked up
at��something I don��t recommend at all. I only use a PO
Box as a return address on all my shipments��UPS and
USPS included. It��s not safe to have anyone know where
you live or where your expensive merchandise is stored.
This is not as handy as having a daily pickup from UPS,
FedEx, or DHL. A daily pickup from one of these carriers
means that a driver comes to your home or place of business
every day at about the same time. My UPS driver
shows up at 2:00 p.m. and if he doesn��t see any packages
in our normal staging place, he will ring the doorbell to
make sure we don��t have anything that day.
If you��re shipping airmail or surface mail internationally
with the USPS, you must fill out a form and wait in
line at the post office with your package. This can be a big
time-waster. The USPS will only pick up international shipments
that are shipping Global Express (the most expensive
option).
If you want your package insured you will pay extra for
insurance, and it��s pretty pricey. You must also pay extra
for a tracking number if you want one. Not only do these
two features cost extra, but you will have to fill out a separate
form for each one! Finally, if something goes missing,
you may never find it, and collecting from the USPS for
breakage or loss is a nightmare.
FedEx has become a leader in the overnight shipping business.
This service is too expensive for most eBay sellers to use for
larger items. FedEx has recently become a ground competitor
with FedEx Ground and is a company to watch and experiment
with on your shipping. I have heard good and bad things. They
are not up to the standard that UPS has set but are working
towards it.
�� Pros: Rates are slightly better than those of UPS. Software
is comparable to UPS. Delivery is slightly faster than UPS
to major metropolitan areas. One of FedEx��s companies,
FedEx Freight, is a good alternative if you have LTL (less
than a truckload) of larger items to ship.
�� Cons: Not as reliable for delivery to rural areas. They
sometimes contract out to smaller trucking firms, and I
have heard that packages can get lost for weeks at a time.
DHL
DHL��s strong suit is the rapid delivery of documents and shipments
by airplane. If you don��t want to hassle with the USPS and
are doing a lot of airmail to overseas destinations, I recommend
contacting DHL (which used to be Airborne Express). If you
ship a significant volume, DHL will usually work with your small
business to help you get better rates.
�� Pros: Great at rapid airmail deliveries. DHL can be very
competitive with the USPS for international shipments.
�� Cons: Ground is too expensive. The rate for a one-pound
package from 92211 to 87120 with tracking, residential
delivery, daily pickup, and insurance for $100.00, was
$10.23 (UPS was $5.10). DHL requires a lot of customs
forms and paperwork, which can turn off your international
buyers who hate to pay duty.
