I have been currently using FedEx solely for my larger packages. We use USPS for the smaller ones. My boss wants to not use USPS and add UPS. (I've had mystery charges with UPS in the past, that's why I'm not using them) So my question is, is it cost effective to use FedEx and UPS together rather than just one? I know that the rates are better the more you ship with a single company. I know we will lose money dropping USPS. .. Foe reference, we shipped 1185 pieces in the last 30 days.
Thanks for your question and for being a part of the community.
I cannot comment on the cost effectiveness of using both in carriers in combination over time, but it can be beneficial to have more service options and price points available. However, I think that there are also benefits to using one carrier as well as far as potential rate discounts if you are doing high volume shipping.
Since it might be helpful for you to get some opinions from other Shippers, I have tagged our super users @eric-siversen and @masonfabian for another perspective. Can you guys share your insights and personal experience when it comes to using multiple carriers?
-Erin: Your Friendly ShipStation Community Manager
I use all 3 carriers, and each for different reasons. For me its about pricing and quality of service. UPS has a small package program (under 1 lb) UPS mail innovations which is great to save money on smaller packages - it is USPS who delivers the last mile. So transit adds a day or 2 in lieu of UPS ground.
So if you are using all UPS products it will all count toward your yearly spend, for rate negotiations.
I thought I would chime in here- we use both services in our business and here are a few things we have found.
FedEx offers rates and discounts on an annual basis where as UPS does it on a monthly basis. This tends to mean that we get better rates with FedEx because they reward us for year long use not month to month usage. However, UPS has a larger 1-day ground transit time available and this allows for some better customer service at a decent rate. Our fulfillment staff weighs the time and transit with the rate on each order decides what carrier to use. Since we ship from PA to the entire country, we tend to fall heavily on the FedEx 2-day service and therefore use FedEx more than UPS.
To note from the management perspective, FedEx has way better customer service and online tools. So if something goes wrong in transit, I would prefer it go wrong with FedEx because I can get to the root of the issue much faster!
Hope this helps some!