Why we prefer UPS for ecommerce

After processing your orders, someone has to deliver that last mile to your customer’s doorstep. In the U.S., there are three primary choices for delivery: (1) USPS, aka your local postal service; (2) FedEx; and (3) UPS. We use UPS. In this article I will share why we chose UPS, and give you some tips getting the most from them.

USPS
If you are shipping media (books, CDs, videos), USPS is far and away the most affordable option. You can sometimes save 50% or more on every delivery. Unfortunately, USPS doesn’t guarantee delivery times without paying through the nose for express.

FedEx
There are two completely separate companies that operate under the FedEx brand. There is Federal Express and FedEx Ground. The rates for FedEx Ground shipping are identical in every way to UPS. And feature-for-feature, they stack up pretty evenly. But in my eyes, there are two major advantages to UPS. (1) I have several UPS Stores nearby if I need their help; and (2) UPS built its shipping business from “the Ground” up (pardon the pun). FedEx started with overnight, and is still just getting into the ground business. If most of your shipments are overnight (for example, perishables) I would choose FedEx. Otherwise, UPS can’t be beat.

UPS
In addition to having a great ground shipping business, UPS can help you in several other ways. For less than $20 per week, UPS will set up a daily pickup account. With this, a driver will stop by your place once a day to pick up outgoing packages. Plus you get access to the following…

(1) UPS provides free boxes. For less than $20 per week, UPS will stop by your place for daily pickups and supply you an unlimited number of FREE boxes and other packing materials. They don’t do bubble wrap, but they will give you a variety of different sized envelopes and boxes including shipping tubes (which are handy for our beach umbrellas). When you need to resupply, just call the toll free number and boxes will arrive the very next day. These are not large boxes. But they are large enough to send most apparel and items 18″ x 12″ x 3″ or smaller. NOTE: Some boxes marked for Express say “Do Not Use for Ground Shipping.” However, both the rep and the driver tell me that UPS does not enforce this. You can ship ground in any box you like, regardless of its markings.

(2) UPS provides free shipping labels (and a label printer). All your shipping labels are free, whether sheet fed or spool fed. A variety of label sizes are available. For an extra $2 per week (still under $20 total), they will supply you directly with a Zebra Thermal 2844 label printer that connects to your computer and shipping scale via USB or serial cable. It requires no ink, and is perfect with 4″ x 6″ shipping labels.

(3) UPS offers more technology subsidies. The Customer Technology Program (CTP) subsidizes your business with vouchers to purchase warehouse technology like free computers (from HP, Dell, Lenovo or Gateway) and free shipping scales (from Fairbanks or Toledo). Just get in touch with your local account representative and have them come to your physical location. The local account rep will assess how much they believe you will ship on the average day, and use that to calculate the level of subsidy. This process takes a month or more to complete. But it can provide you up to $1200 or more for equipment.

(4) UPS discounts shipping rates. Daily pickup accounts automatically pay less for shipping than standard rates. But you can save even more. Once you’ve met with your local account representative, ask them to propose a sliding scale discount rate card. This will take a week or two for them to complete; and you will need to execute a simple agreement stipulating the conditions under which these rates will apply. After the agreement is in place, the more you ship, the more you will save. We expect to save 30% off the daily pickup rates (which are already discounted from the standard rates).