FedEx Versus UPS : Which is better?

[Siamese-Dream.Com]

Hi there, Everyone:

I know this is off topic, but just out of curiosity, I have to ask why some merchants (based in the US) prefer FedEx over UPS?

We usually offer US Postal Service and UPS Ground, and noticed a lot of merchants seem to offer FedEx. Have you noticed their rates being cheaper or any other advantages over UPS?

Thanks in advance.

[d_host]

Re: FedEx Versus UPS : Which is better?

FedEx and UPS are "about the same" in terms of reliability, and if anything, we just found an odd perception not based on any empirical data - but most people on the west coast seem to prefer FedEx, while most people on the east coast prefer UPS. Don't ask me why that is, it's just the comments I've been hearing over the years...

Personally I prefer FedEx (disclaimer: I am on the west coast), but my reasons are:

- FedEx consistently delivers cleaner packages. UPS, at least here, seems to be dragging boxes through dust and mud and seems to rarely wash their trucks, so by the time you get the package, you have to go wash your hands immediately. And heaven forbid your clothing comes in contact with the box... (now I know why their uniforms are brown!)

- FedEx does not make you "wait" for a ground package 5-7 business days if the package is shipped from an area where it takes only 1 day to get to the destination. I see this frequently - order something from within California via FedEx Ground and it's delivered next day, but if the package is shipped via UPS Ground, UPS holds the package up to 7 business days before they deliver it - sort of forcing you to choose overnight shipping if you really want that package sooner. It's odd, but common, to see your package sit at the local UPS distribution center for 5, 6, 7 days, before the status changes to "out for delivery." FedEx doesn't play that game here - they deliver packages as soon as they make it to the destination, regardless of the chosen shipping method.

- Every time I've used UPS for international shipping (incoming orders), they held packages for 1-4 weeks in the "customs clearance" division - which is run in-house by UPS itself, not the government "US Customs" group. There were couple times I ordered items that were held up 4+ weeks and even after repeated phone calls, emails, escalating the issue to managers and managers' managers, they were not able to do much other than promise to resolve the issue and release packages from customs "by tomorrow morning" (which never happened). Every time they promised to call back, they never did - I had to repeatedly call them to figure out the status and location of the package. FedEx, on the other hand, rarely holds anything in customs longer than 24 hours, so international packages shipped through them always reached me here in San Diego within 2-3 business days, max.

- On the business side of things... We don't use FedEx all that much, being a hosting company (not a retail operation shipping products every day), but when we called FedEx to establish a business account, they gave us a very nice discount right off the bat. How nice? I'm not sure it's ok to post the actual numbers, but let's just say the discount made their 2nd Day and Express Saver (3-day) rates virtually on par or less expensive than USPS Priority Mail. You get much better tracking with FedEx than you get with USPS, plus automatic $100 insurance, so it was a no brainer. No discounts on Ground, but that's very inexpensive and competitively priced as is, and also comes with great tracking and insurance.

[Siamese-Dream.Com]

Re: FedEx Versus UPS : Which is better?

Thank You Remik!!!

I actually have UPS Customs clearing house story to tell when I get a few minutes to type it up... It was VERY upsetting.

[SunCam]

Re: FedEx Versus UPS : Which is better?

We used UPS for years to deliver DVDs and videotapes and had a very good experience. We are based in Florida and got next day delivery of GROUND packages everywhere in Florida and Georgia. We have now stopped producing videotapes and we followed Netflix lead and started using USPS for the DVDs. We can now deliver a DVD anywhere in the world for under $2.00 including the cost of producing the DVD. With UPS, the shipping alone was $6.00-$8.00 just in the lower 48 states. USPS is not as fast and we did have to give-up package tracking but reliability seems excellent so far.

[ImaginaryColours]

Re: FedEx Versus UPS : Which is better?

My experience with UPS here in KS is different. I live three hours' drive from Kansas City, where I have a supplier. My orders arrive next day even when ordered Ground.

I also get things next day from Minneapolis, MN when I order from Quill.

Very pleased with the UPS service in this area.

Tom

[ChessnGames]

Re: FedEx Versus UPS : Which is better?

Being a drop shipper, we use USPS, UPS and FedEx, UPS being our primary provider. Here what I think about each service:

UPS:
Pro:
- Easier claim system in case package got lost or damaged. No limitation to the time between shipping and claim.
- UPS ship manager software more user friendly.
- UPS prefered membership for high volume customer with a fatser customer service number.
- Drivers pick-up both ground and express (see blewo about FedEx)
Cons:
- When shipping international, they charge insane brokerage fees and your customer get upset. We use USPS for international.
Note: I ship from Nevada and UPS NEVER wait to deliver package. They rather get rid of your package quikcly instead of risking to have it lost in their hub.
- More damages than with the 2 others but they are usually pretty good at reimbursing damaged goods. (I also do more volume with them...)

FedEx:
Pro:
- Sometime cheaper than UPS.
Cons:
- You have 30 days to file a claim. If your customer contact you on the 29 th day and you file on the 31th, the loss is yours.
- FedEx software super confusing to find anything in there. Too much options and possibilities are making it to complex.
- They use two different drivers for Ground and Express so you have to remember to schedule the Express pick-up and I had several instances when they forgot to show up.

USPS:
Pros:
- Usually cheaper than the 2 others
- Mailman can pick-up at your home the next day
- Internet rates are cheaper than in person post office rate (and no waiting line)
- Can be real cheap if you take advantage of their flat-rate boxes.
Cons:
- When shipping international, they only "own" the goods until the borders, after they transfer responsibility to the foreign Post Office: claims are long and painfull.
- You need to keep inventory of the different flat rate boxes.

Hope this help,

[Siamese-Dream.Com]

Re: FedEx Versus UPS : Which is better?

Hey there, Stephan:

Thanks for the great summary!!! I will really have to look into the 30 day limit on claims. That could be a deal breaker.

I know that the customs offices in different countries will often let USPS packages go without levying any customs / VAT/ tariffs on the packages, but the UPS packages we send outside the US ALWAYS seem to get hit by those high customs fees.

Plus the international shipping rates are MUCH cheaper for US postal service, especially if you take advantage of the flat rate boxes, as you suggested.

On the other hand, we are getting more and more international customers complaining that their packages haven't arrived, and then we have to re-send them. Worse yet is that the US postal service web tracking for international packages is not very good at all, so it can be a nightmare to try and track a package or claim insurance for lost packages.

For example, I can send two international packages to, say, Canada from the same local post office at the same time. Then if I look on line later, it will appear that only one of the packages will be entered into the system, while the other package will simply say, "There is no information for the tracking number you provided," or will state, "That item was accepted at your local post office." and then no more updates... EVER!

Maybe I should stop sending INTERNATIONAL packages by hand at the post office and request a driver pickup, and print out one of the Scan Forms and have the driver scan it in?!?!?! I wonder if that will help any in ensuring that the delivery confirmation numbers are actually entered into the system.

[Rick Wilson]

Re: FedEx Versus UPS : Which is better?

Mark,

For international shipping checkout www.internationalcheckout.com or www.i-shopusa.com they work like an alternative payment method, you provide a discount to them and ship to them in the USA (Santa Monica, CA in both cases).

However they pay you directly (no international fraud or chargeback risk), they take care of customs, currency conversions and shipping to basically anywhere in the world, all for a flat discount on your product offering.

[ChessnGames]

Re: FedEx Versus UPS : Which is better?

The USPS mailman will not scan your package when he delivers your mail and pick-up your package but we always print the label via the Internet because we have a better tracking this way. It will be scanned a the post office.
We ship a lot abroad and we don't have too many lost packages.
We saw the same thing as you with packgae tracking being heratic, but less when you print the label.
It's also a good idea to spend the extra bucks for insurance: it seems like USPS is watching those packages more carefully for some reason :-)

[Siamese-Dream.Com]

Re: FedEx Versus UPS : Which is better?

Hey again Stephan:

The USPS mailman will not scan your package when he delivers your mail and pick-up your package but we always print the label via the Internet because we have a better tracking this way.

Two questions:

1) Do you use the USPS Web site to print the international labels, or a thrid party tool such as Endicia / Indicia or stamps.com or something else?

2) When you say "The USPS mailman will not scan your package..." I am not sure if you are referring to the Scan form which you can print out separately when you use the USPS web site to print out postage. The mail carrier is SUPPOSED to have a portable hand held scanner that he uses to scan in the Scan Form, and ALL of the packages in that shipment are supposed to then enter into their system.

Unfortunately, it seems that most of the mail carriers and clerks are either ignorant of or confused about how that works...

Mark

[ChessnGames]

Re: FedEx Versus UPS : Which is better?

Mark,

1) I tried Endicia and Stamps.com last December when the USPS website had so much troubles but I was not that impressed.
Unless you really are dealing with a huge volume of orders and have it intergated in your order processing system, they don't provide much advantages. And then, the claim system is even more cumbersome because you had an extra layer between you and USPS.
I still have an unresolved claim issue from Decmber with Stamps.com
So we are just using the regular USPS.com website.

2) I have never seen any of our mailman with an electonic device.
I don't use the "schedule a pick-up" option of the USPS website as our maillady knows that we have packages almost everyday so she just come to the front desk and ask if we have anything when she drop off the mail.
So I guess she scan everything when she get back to the terminal, or she have the handheld in her truck. Not sure.

[Siamese-Dream.Com]

Re: FedEx Versus UPS : Which is better?

Hi again, Stephan:

I don't use the "schedule a pick-up" option of the USPS website as our maillady knows that we have packages almost everyday so she just come to the front desk and ask if we have anything when she drop off the mail.

You are fortunate.

Whenever I try to give any packages to our regular delivery person, he just scowls and says, "I don't know... my truck is kind of full. You should really schedule a pick up..."

I did have one very kind carrier who did pick ups in the neighborhood and for a while he was coming to us everyday, knowing that we would have packages to send out. Then one day he came by and said that his boss wouldn't let him come by anymore unless we schedule a pick up on the USPS web site the night before.

since I use endicia.com for all of our USPS, I couldn't schedule a pick up through the USPS web site (I think you have to have printed postage through the USPS.com web site to actually schedule a pickup, as far as I can remember).

If I can find a way to import customer addresses easily into the usps.com click-n-ship, then I might give it a try again...

[MattK]

Re: FedEx Versus UPS : Which is better?

As far as USPS, what I do for my busy season (Christmas) I go to the post office and talk to a manager about a daily pickup. Because I have so many packages going out everyday, they are very accommodating. Just my 2 cents and I am sure it is more the exception than the rule.