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Choosing the right small parcel carrier is crucial for product-based companies. In this comprehensive comparison, we analyze USPS, UPS, and FedEx, evaluating their pros and cons in terms of cost, coverage, delivery speed, tracking functionality, and more to help you make an informed decision for your shipping operations in 2023.
As a product-based company, choosing the right small parcel carrier is crucial for streamlining your shipping operations and ensuring customer satisfaction. In 2023, with various carrier options available, it's essential to weigh the pros and cons of each service provider.
For startups especially, affordability often weighs heavier than other carrier considerations. In fact, many companies set their shipping rules for each possible order configuration, shipping zone, and package weight almost exclusively based on cost and discount rate access.
At the same time, shippers tend to conflate “best” rates with cheapest rates, and it is typical for 3pls to defer to the lowest numbers in default ship method programming. There’s nothing necessarily wrong with this approach. If anything it's good practice, especially for new brands with no order history of customer demographic data on which to base decisions about carriers.
But there are also plenty of exceptions - companies whose shipping method and carrier decisions are largely dependent on the specific nature of the business and its relationships with customers. These companies care deeply about customer experience and prioritize customer retention and brand loyalty as core tenets of their brand narrative. For these brands, the postage decision is a catch-22. By the time startups are ready to make a ground carrier decision, they’ve likely just upgraded from a bootstrapped operation to one outsourced across multiple key functions. But with a ton of new operational expenses, comes a tremendous lack of liquidity
Faced with similar circumstances, many brands are turning to fin-tech solutions like Ampla for streamlined access to working capital. Ampla is an all-in-one platform where brands can access a range of high-powered financial tools to help bridge critical funding gaps. As the economy limps on, institutional support remains a massive barrier to entry, and companies are forced to compromise. For eCommerce startups, this often means conceding to low carrier standards.
And, when every eCommerce startup is seeking the lowest rate card, it is nearly impossible to leverage shipping as a value add. Conversely, Ampla brands equipped with a small financial buffer are able to enter the carrier marketplace at a tier above economy shipping where there is more to consider than just price.
In this article, we help you make sense of your options and finalize a short list of carriers and service levels for your fulfillment process. Included in the following analysis are comparisons between the three major carriers - USPS, UPS, and FedEx. Specifically, we look at price, coverage, delivery speed, service level options, tracking functionality, and other factors that may prove consequential.
The USPS has long been a trusted name in small parcel shipping. Here are some key pros and cons to consider:
UPS is known for its comprehensive logistics network and a broad range of services.
Let's explore the advantages and disadvantages of using UPS
Consider the following pros and cons of using FedEx
Choosing the right small parcel carrier for your product-based company in 2023 requires careful consideration of your shipping needs, cost constraints, and customer expectations. USPS, UPS, and FedEx each have their strengths and weaknesses. USPS is cost-effective and offers extensive coverage, while UPS excels in speed and reliability, and FedEx provides a wide range of services with advanced tracking capabilities.
By analyzing the pros and cons of each carrier, you can make an informed decision that aligns with your business goals. Remember to evaluate shipping rates, delivery speed, tracking features, and additional services to select the carrier that best suits your requirements.