FedEx vs UPS: Which is Best for Your Needs in 2025?

FedEx and UPS are the most popular delivery options for any business or individual making shipping decisions. They control  50% of the doorstep delivery market in the USA and secure total revenues of $191 billion annually. They have pushed through annual general rate increases of more than  30% and often only have a minor marginal difference in price. 

The world will be changing quickly by 2025, so eCommerce and shipping customers are looking for low-cost, fast, high-quality products. However, these two great giants are incredibly similar, and one may need help differentiating them.

This guide compares FedEx and UPS, as well as their services, prices, and delivery times. Use it to decide which freight company to hire.

Key Takeaways

• In General: FedEx is more substantial in global transport. UPS generally dominates domestic and ground delivery.
• Pricing: UPS is cheaper on ground delivery than it is with FedEx. FedEx rates often depend on urgency and the type of service that needs to be offered during the shipment.
• Reliability and Speed: These two companies have guaranteed delivery. However, FedEx performs better for express and time-sensitive shipments.

Overview of UPS

UPS (United Parcel Service) is a major player in the global logistics industry. Founded in 1907, it is one of the oldest and most trusted delivery companies in the U.S., with an expansive network of ground and air delivery services. Here’s a closer look at what UPS has to offer:

Pros of UPS:

• Reliability: UPS has always been valued for its delivery services and the availability of guaranteed delivery services. Quick replies to customer queries boost its image as a reliable shipping solution for eCommerce firms.
• Heavy Package Shipping: UPS's weight limit is 150 pounds. This makes it better for heavier shipments, like TVs and pre-assembled furniture. The USPS has a 70-pound limit.
• High-Value Item Insurance: UPS also offers up to $ 50,000 in insurance coverage for packages, which is ideal for luxury items such as watches and other hard-to-find artifacts.
• Industry-Leading Ground Service: UPS Ground has low rates and fast delivery. It is ideal for businesses that need to ship products by ground.
• Emergency Delivery Service: UPS Express Critical is a program. It guarantees emergency delivery within 24 hours worldwide for businesses with urgent needs.

Cons of UPS:

• Additional Surcharges: UPS has many more surcharges than USPS and FedEx in its competitive analysis. Although products are bought at cheap rates, it is expected to find hidden charges that increase the overall cost of service delivery.
• Rural and Remote Area Fees: As previously noted, rural or remote addresses attract additional charges from UPS that elevate the cost of transportation, particularly for businesses in rural areas. FedEx does not charge such a fee, which may make it the cheaper option for such services.

Overview of FedEx

FedEx Corporation is among the world’s largest shipping companies. Established in 1971, it initially started offering what are today’s standard delivery services.

It works best for expedited delivery, although it could be better for emergency consignment. FedEx usually provides routine express shipment solutions cheaper than UPS and focus on business-to-business shipments.

Pros of FedEx:

• Leading Carrier for Business Deliveries: FedEx is recognized as the premier choice for business deliveries, particularly for time-sensitive shipments such as essential documents.
• Speciality Shipping: The company is well-suited for shipping specialty items, including perishable food products or temperature-controlled goods.
• Innovative Packaging Solutions: FedEx has cold packaging. It keeps a temperature of 35°F-46°F for 48 to 96 hours without dry ice or gel packs. This makes it a preferred carrier for eCommerce food startups, especially in pre-packaged meals.

Cons of FedEx:

• Higher Shipping Costs: FedEx is generally the most expensive primary carrier in the United States compared to UPS and USPS.
• Limited Software Partnerships: FedEx needs strong ties with third-party shipping software, like ShipBob. So, its discounts to shipping software customers are not as good as those from UPS or USPS.
• Surcharges: Like UPS, FedEx has various surcharges. It includes a $5.15 fee for residential deliveries (as of 2023). These can raise shipping costs.

FedEx vs UPS: A Comprehensive Comparison 

When considering the two top carriers, FedEx and UPS, it's vital to consider some factors that may affect your work with the chosen company. Here’s a breakdown of the services, prices, customer relations, delivery time and efficiency, and tracking options.

1. Pricing

This is a common determinant when choosing a shipping provider company. FedEx and UPS use zoning rates, meaning cost depends on distance, weight, and dimensions. However, there are notable differences:

• FedEx Pricing: Other carriers offer similar rates, but FedEx is slightly cheaper for international shipments, especially Express services. For instance, a 2-pound package may cost between $50 and $100 when shipped internationally. FedEx also offers special offers to very large shippers, which can significantly reduce costs.
• UPS Pricing: UPS tends to provide lower ground shipment rates than air deliveries in the country. For instance, the first tier, which supplies a 5-pound consignment within the United States using UPS Ground, may cost between $10 and $20. However, UPS' international shipping rates are also reasonable but a little more crowded than FedEx's for some urgent shipments.

2. Delivery Speed and Reliability 

Delivery time is crucial in companies that rely on timely delivery. Here’s how FedEx and UPS stack up:

• FedEx Delivery Speed: FedEx is famous for its fast delivery times, especially when making international deliveries. FedEx International Priority takes 1-3 business days to deliver packages to other parts of the world’s largest cities. Domestic options, such as FedEx Overnight and FedEx 2Day, also offer reliable service, often delivering overnight shipments by 10:30 AM the next business day.
• UPS Delivery Speed: UPS is efficient in domestic delivery, especially with its Next Day Air option, which ensures that deliveries are made between 10:30 AM and 12:00 PM on the next business day, depending on the area of delivery. UPS Ground is also quite strong, with delivery times ranging from 1 to 5 business days, depending on the distance.

3. Services Offered

FedEx Services: FedEx offers many shipping solutions intended for various intents, such as:

• FedEx Express: This includes US domestic services. They are FedEx International Priority, which takes 1-3 days to over 220 countries, and FedEx SameDay, which delivers the consignment the same day. The services include FedEx Custom Critical for delicate temperature items and valuable items.
• FedEx Ground: This service is cheap for intra-state deliveries. Depending on the distance, it delivers in 1-5 business days. It also delivers to homes on Saturday.
• FedEx Freight: In general and LTL shipping needs, FedEx Freight offers coverage that meets the freight shipping needs of most businesses.

UPS Services: UPS provides a similar portfolio of services that concentrate on effective domestic operations.

• UPS Next Day Air: UPS Next Day Air service ensures package delivery by 10:30 AM the following day, which is essential to meeting deadlines. UPS also has options like UPS 2nd Day Air, which delivers within two days, excluding the day the plan was sent.
• UPS Ground: Wonderful in terms of price. UPS Ground shipments arrive at most addresses within the United States within one to five working days from pickup.
• UPS Freight: UPS also offers freight services, such as less than truckload, LTL, and truckload for bigger freight shipments.

4. Customer Service

Both FedEx and UPS have established robust customer service systems, but there are some distinctions in their approaches:

• FedEx Customer Service: FedEx offers 24/7 customer phone and online chat support. Customers can log in to their FedEx account to track their parcel returns and deal with their claims. It also has a reputation for offering total support on customs formalities for operations with international shipments, which may greatly help companies carry out their operations at the global level.
• UPS Customer Service: UPS supports its customers with care services. However, its hours may be limited in some regions. 

5. Tracking Capabilities

A sound tracking system is something that every business and every customer needs. Both FedEx and UPS provide advanced tracking options:

• FedEx Tracking: With the tracking number, customers can track their consignment's status in real time. The software lets customers get SMS or email updates on the shipment's status and expected delivery time. FedEx has a service called FedEx Delivery Manager. It allows customers to choose when and where to deliver their packages.
• UPS Tracking: UPS offers a tracking service on its website and in the UPS My Choice app. Customers can receive delivery notifications and change delivery preferences. UPS also provides a vibrant tracking history, which is useful when a company manages several shipments.

5. Customer Service

Both FedEx and UPS have established robust customer service systems, but there are some distinctions in their approaches:

• FedEx Customer Service: FedEx offers 24/7 customer phone and online chat support. Customers can log in to their FedEx account to track their parcel returns and deal with their claims. It also has a reputation for offering total support on customs formalities for operations with international shipments, which may greatly help companies carry out their operations at the global level.
• UPS Customer Service: UPS provides its customers with care services. However, its hours may be limited in some regions. 

Which is Better: FedEx or UPS?

Based on our previous discussions, UPS and FedEx offer almost the same rates, delivery reliability, and services. At this point, you might have a clear picture of who will be the winner in terms of retail rates;

As with the previous examples, UPS and FedEx offer almost the same rates. FedEx wins in all four of our instances.

For the most part, when using Easyship, UPS had better rates for shipping, except for when it came to international shipments. However, FedEx still had the better and less costly rates on international air freight.

Other takeaways:

• If you want to send something that weighs 2 lbs as a domestic shipment using a medium-sized box, UPS provides a lower rate than FedEx.
• When sending locally, rates decrease significantly as you reach the 2nd day of transit. When you have to send something urgently, but the rates are high, go for the 2nd day.
• It can be between the number of services regarding your particular route or when you want your package delivered.

How Shippie Can Partner With You to Provide Excellent Customer Experience

Work with Shippie to get uncanny results and customer satisfaction. Shippie delivers your goods 4x faster and at 35% less cost, delivering 99% on-time. Our priority is express shipping and low prices, which makes us the choice for businesses of any size that want to up their delivery game.

Work together with Shippie and provide your customers with ease and reliability with hassle-free last-mile delivery. Are you ready to make your delivery experience better? Talk to our sales representatives today and find out how we can help with your logistics requirements, from shipping and fulfillment to doorstep delivery.

Frequently Asked Questions

Which is cheaper, FedEx or UPS?

Usually, UPS is cheaper for ground delivery within the United States, while FedEx charges more for express and international services, which is compensated by their speed. UPS is also cheaper regarding 2nd Day and Next Day Air than FedEx’s.

Can I negotiate shipping rates with FedEx or UPS?

Yes, there are negotiated rates if a company always has a consistent need for the shipment of packages through FedEx and UPS. This shows that competition does matter. These providers will probably give you better rates if you are a frequent and high-volume shipper than those who rarely do it.

How do FedEx and UPS handle lost packages or claims?

Each of these companies has claim policies for lost or damaged packages. FedEx and UPS require proof of loss or damage before processing the claims. The money is paid according to the declared value. Both of their websites also provide details about filing claims. Customer services can help ease this process.

‍