USPS vs UPS: Complete Price Comparison

For packages under 5 lbs, USPS is dramatically cheaper - often 50-70% less than UPS:

• 2 lb package, Zone 4: USPS $5.25 vs UPS $19.05 (USPS saves $13.80)
• 5 lb package, Zone 5: USPS $8.75 vs UPS $21.05 (USPS saves $12.30)
• 1 lb package, Zone 3: USPS $4.50 vs UPS $15.75 (USPS saves $11.25)

The savings come from two factors: USPS Ground Advantage has lower base rates, and USPS has no residential surcharge (UPS adds $6.55 per package to home addresses).

This is the biggest factor most shippers overlook:

• USPS residential surcharge: $0 (none)
• UPS residential surcharge: $6.55 per package

For a 5 lb package to a home address:

• USPS Ground Advantage: $8.75 total
• UPS Ground: $14.50 + $6.55 = $21.05 total

USPS saves $12.30 on this single package. For e-commerce sellers shipping 100 packages/month to homes, that is $1,230/month in savings.

At 15-20+ lbs, the equation changes - especially for business addresses:

• 20 lb package to business, Zone 5: USPS $22.75 vs UPS (contract) $18.50
• 30 lb package to business, Zone 4: USPS $28.50 vs UPS (contract) $22.75
• 50 lb package to business: USPS max 70 lbs, UPS handles up to 150 lbs

Key factors favoring UPS for heavy B2B: no residential surcharge to businesses, volume discounts at 50+ weekly packages, and better dimensional weight handling for large boxes.

Both carriers charge dimensional weight for oversized packages, but the formulas differ:

• USPS divisor: 166
• UPS divisor: 139

For a 12x12x12 inch box:

• USPS dim weight: (12 x 12 x 12) / 166 = 10.4 lbs
• UPS dim weight: (12 x 12 x 12) / 139 = 12.4 lbs

For lightweight, bulky items, USPS calculates a lower billable weight. This matters for clothing, pillows, and other low-density products.

USPS Tracking:

• Basic tracking with origin/destination scans
• Fewer intermediate scans than UPS
• Informed Delivery for residential recipients
• No signature confirmation on Ground Advantage (available on Priority)

UPS Tracking:

• More granular scans at every hub
• UPS My Choice with delivery windows
• Photo proof of delivery standard
• Signature options on all services

For high-value items or when customers demand visibility, UPS tracking is superior. For standard e-commerce, USPS tracking is adequate.

USPS Insurance:

• Ground Advantage: $100 included
• Priority Mail: $100 included
• Additional coverage: $2.75 per $100
• Claims process: 7-21 days, requires receipts

UPS Insurance:

• $100 declared value included
• Additional coverage: $0.90 per $100
• Claims process: 5-10 days, requires photos/receipts

UPS additional insurance is cheaper and claims are typically resolved faster. For high-value items, consider third-party insurance (Shipsurance) which beats both.

Use USPS when:

• Package is under 10 lbs
• Shipping to residential address
• Customer does not need premium tracking
• Package is bulky but lightweight
• No volume discounts from UPS

Use UPS when:

• Package is 15+ lbs
• Shipping to business address
• Customer needs detailed tracking
• You have contract pricing (50+ weekly packages)
• Package is high-value (better claims process)