The US Postal Service recently launched a new service: USPS Ground Advantage ™.
Designed to compete with Ground service from UPS and FedEx, USPS Ground Advantage is an ensemble of three existing USPS services (Parcel Select Ground, First-Class Package, and Retail Ground) offering an alternative option for packages under 70 lbs.
Because it was announced with little fanfare, it’s possible many shippers are unaware of the new service and if it can benefit their parcel operation. The following are details of the service in terms of pricing and how the solution operates compared to FedEx and UPS Ground.
The chart below displays the list pricing for UPS and FedEx Ground services compared to USPS Ground Advantage by weight.
Shippers will immediately notice how much weight factors into any USPS Ground Advantage cost comparison with UPS or FedEx Ground. The new USPS service is less expensive (by an average of 26%) at weights up to about 20 lbs. per shipment. Above that weight, it’s an average of 51% more expensive, with the difference increasing as the weight increases.
Other important points of comparison
However, aside from base rates, companies must consider other factors when evaluating the new service, including some accessorials and fees. USPS Ground Advantage does not charge a Residential Surcharge or Fuel Surcharge, for example. But while USPS Ground Advantage offers an advantage through less surcharge exposure, other considerations, including package dimensions, weight, service level, and potential volume discounts, can all impact total shipment costs and influence the best choice.
What should you do next?
Like most things cost- and service-related in the parcel industry, determining how and where individual companies can use this service will take some research based on your shipping requirements and contracts.
And as you probably know, UPS and FedEx both already offer highly competitive Ground alternatives, including UPS SurePost and FedEx Ground Economy. To compare the details of each of the many Ground services offered by FedEx, UPS, and the USPS, click on the following links:
Overall, the USPS’s goal with Ground Advantage is to become a more competitive option for shippers and bring more parcel volume into its Ground network. It likely offers savings opportunities for many companies, but determining if that’s the case for you will take some analysis.
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