On Monday, September 23rd, UPS made a service announcement regarding a new product: UPS Simple Rate.
You can read more on the UPS website – here.
UPS Simple Rate is a flat-rate service for packages up to 50 lbs. delivering to anywhere in the US. It targets ecommerce and residential shippers such as those selling on platforms like Etsy and eBay.
This service will compete directly with FedEx One Rate and USPS Priority Mail. The advantages of using any flat-rate service such as these include the ability to more accurately forecast package delivery cost and avoiding surcharges such as the Residential Delivery Surcharge, Delivery Area Surcharge, and fuel.
With its new solution, UPS is offering comparatively more flexibility for customers who are able to use their own packaging (unlike the flat-rate solutions offered by FedEx and USPS) as long as the box is under 1,728 cubic inches. The largest FedEx box available is 1,452 cubic inches.
Simple Rate is priced on box-size alone with a flat rate to anywhere in the 48 contiguous states. FedEx prices One Rate not only by box size but also by shipping distance. While most shippers will find FedEx cheaper for Express Saver and smaller boxes going short distances, UPS will have a cost advantage when it comes to 2-Day shipments and larger items moving across the country.
UPS is also offering Simple Rate for Ground, 2-Day, and 3-Day service levels while FedEx currently only offers its One Rate Service on Express.