1) Introduction to Shipping Cost
For any eCommerce business, shipping cost is a crucial factor that demands careful consideration. In general, shipping cost is the sum of the price of packaging, handling shipments, courier charges, and tariffs and duties. However, a significant component of the shipping cost is paid to shipping carriers.
While customers insist on affordable shipping rates or free shipping options, it is not always viable for eCommerce businesses. Instead, they hope for lower shipping costs to avoid hurting their bottom line. This is why choosing the right courier partner is a must-have strategy!
Out of hundreds of shipping carriers operating globally, United Parcel Service (UPS) offers one of the best shipping rate models. Let’s take a detailed look at the United Parcel Service’s shipping cost.
2) Overview of UPS
United Parcel Service is a world-renowned delivery company operating on a global scale. They have been operational since 28th August 1907.
Did you know that United Parcel Service had humble beginnings as a messenger service specializing in telegraphs? Today they handle over 1.7 million domestic and 11.8 million international shipments.
UPS upholds customers as the priority focusing on a frictionless customer delivery experience. They have an extensive network of airlines and ground fleet to reach the remotest locations.
United Parcel Service is a favorite shipping courier company worldwide. They offer highly efficient logistics support solutions and eCommerce fulfillment solutions.
While UPS offers an extensive gamut of services, this article focuses explicitly on their shipping cost. This is to help businesses be informed about their various services and ship intelligently with UPS.
3) How does UPS Calculate Shipping Costs?
United Parcel Service shipping cost is primarily based on dimensional weight and transit time. However, these are not the only factors involved when calculating shipping costs.
Let’s take a detailed look at all the factors involved in UPS shipping:
3.1) Size and weight of the parcels
The size and weight of the parcels determine two things. First is the amount of space for your product. Second is United Parcel's maximum threshold for shipping parcels with their delivery methods.
Therefore, shipping a smaller package weighing 2 lbs is considerably less than shipping an extra large package weighing 100 lbs.
UPS levies a maximum weight limit of 150 lbs and 165 inches for the length and width of the package.
3.2) Packaging Type
Packaging boxes and envelopes dictate the dimensional weight and size for shipping your parcel. While United Parcel Service allows eCommerce businesses to have their packaging, it also offers a range of other packaging types.
One advantage of using UPS packaging is that it comes cost-free.
They have boxes for every purpose. The United Parcel Service express box is ideal for shipping documents and express tubes for folding items.
Similarly, they have boxes with different weight limits: a 10 kg box (22 lbs) and a 25 kg box (55lbs).
UPS shipping also has the option of an express envelope for documents with a weight limit of 0.5 kgs.
3.3) Shipping Methods
United Parcel Service has a whole range of shipping methods. Some popular ones include express, ground, and flat rate shipping. Each shipping method comes with its cost badge.
Your shipping cost will depend on the type of shipping method you choose. For example, you can save a good amount of shipping costs if you select standard ground shipping instead of express next-day delivery.
However, you can’t always choose a standard delivery time of five business days at the end of the day. This is where discounts come into the picture.
Discounts are a life saver for eCommerce businesses that regularly ship with United Parcel Service. They have two membership discounts in place.
The AAA discount membership saves you 5% on domestic and international shipping. You also get a 15% discount on packing, office supplies, and mailbox services and 30% on online printing services.
Similarly, AARP membership offers 5% off on domestic and international shipping and 15% off on eligible products. There is also a 20% discount on online printing services.
3.5) Shipping Zone
The point of origin and destination are essential factors in deciding the United Parcel Service shipping cost.
In the USA, the shipping rate is based on the shipping zones your parcel originates from and the location it has to be delivered.
Shipping within a zone costs less than shipping between zones. The more the distance between the two zones, the higher the shipping cost. There are eight shipping zones in the USA.
United Parcel Service operates on shipping zones demarcated across Europe, Asia, Africa, and Oceania. The basic idea of a shipping zone is to group regions with the exact shipping rate.
Surcharges are extra fees levied on the current shipping price to recover costs in certain circumstances. For example, shipping to a postal address in a remote location or delivering on Saturdays.
The United Parcel Service surcharges consider a range of factors. The notable ones include fuel expenses, pick-up fees, transport costs, etc.
Insurance, taxes, and duties generate more shipping costs, mainly if the shipment is for international locations. United Parcel Service offers the Capital InsureShield program. It insured you against damages, expedited re-shipping costs, and theft.
4) UPS Flat Rate Shipping and Shipping Cost
The flat rate shipping is a popular shipping cost model where the pricing is determined by the weight and size of the package.
You can fill the box with any number of items till the weight does not exceed the stated limit. And based on the packaging type, you get uniform pricing.
USPS and FedEx used to provide the flat rate shipping service alone. But United Parcel Service came up with UPS Simple Rate in 2019.
The UPS flat rate starts at 9.45 USD for extra small boxes and 24.30 USD for extra large parcels. The maximum weight limit is 50 lbs.
United Parcel Service’s Simple Rate ships all over the USA with express delivery options ranging from next-day delivery to five-day delivery.
You can use UPS's five-tiered boxes or your packaging boxes for branded packaging.
5) The United Parcel Service Shipping Calculator
UPS provides eCommerce businesses with a shipping calculator to estimate your package’s shipping cost. You can access the shipping calculator from the “Shipping” tab embedded in the menu bar of UPS pages. You can find it in the name “Calculate Time and Cost.”
The United Parcel Service’s shipping calculator considers many factors to estimate the shipping cost. Dimensional weight, transit time, delivery surcharges, and taxes or duties are some of them.
However, rates displayed by the calculator may differ from the actual cost of ground shipping. It is best to visit the local United Parcel Service store for an accurate shipping cost.
There are primarily two steps in calculating the shipping costs:
- First, it requires the country, city, and postal code of your package’s origin. Then it needs the destination address: country/territory, city, and postal code.
- The second step would require you to specify if the postal code is a business or residential address. You also have to provide your package details, including the number of packages and the packaging type.
United Parcel Service lets you select the five packaging types, including your branded packaging. To use your package, you must give its weight, length, width, and height measurements. You can send upto 20 boxes in one shipment.
6) Types of UPS Shipping Services Offered
Here is a list of all the popular domestic and international United Parcel Service shipping types:
6.1.1) Next Day Air Early, Air, and Air Saver
United Parcel Service is an effective shipping solution for next-day shipping. It has three services with corresponding delivery timeframe:
The first service completes deliveries by 8 a.m., the second by 10:30 a.m., and the last by the end of the day. The Air Saver option is the most economical of the three.
6.1.2) 2nd Day Air AM and Air
The Second Day Air and Air option guarantee that your parcel is delivered within two days. Sometimes, parcels may arrive by the end of the second business day.
With Air A.M., your parcels read the commercial destination by 8 a.m. With Air, your packages are delivered by the end of the second business day.
Delivery is not available for residential addresses.
6.1.3) 3-Day Select
United Parcel Service offers 3-Day Select to ensure parcels are delivered within three business days in the US except for Alaska and Hawaii.
The 3-Day Select service typically charges around 11.15 to 42 USD for different destinations. It promises guaranteed delivery by the end of the day.
Packages have a weight limit of 150 lbs.
United Parcel Service offers cost-effective ground shipping five days a week. With an extra charge, it can deliver on Saturdays in select locations.
The delivery times range from one to five business days in all the states and Puerto Rico. The weight limit for parcels is 130 lbs.
The SurePost option is another economical shipping method. UPS provides it in collaboration with USPS.
UPS picks up the shipment while USPS delivers it to the customers.
The delivery time ranges from two to seven business days and is ideal for packages weighing up to 10 lbs. The service is offered Monday to Saturday, while Sunday is reserved only for selected areas under USPS jurisdiction.
6.2.1) Worldwide Express Plus
This UPS shipping service is ideal for faster shipping to Canada. It includes next-day deliveries by 8:30 in the morning. Apart from this, it offers two-day delivery to Europe and Asia.
6.2.2) Worldwide Express
This shipping service guarantees next-day delivery to Canada and Mexico for documents only.
United Parcel Service completes deliveries to Europe and Latin America within two business days. In Asia, the shipping time is usually two to three business days.
6.2.3) Worldwide Saver
The United Parcel Service’s Worldwide Saver is an economical option for express deliveries to most countries. Deliveries are done mainly by daylight.
For Canada and USA, this service comes with next-day deliveries. For the rest of the 215 locations, United Parcel Service ships your parcels and completes deliveries within two business days.
6.2.4) Worldwide Expedited
This service comes with a customs clearance facility and delivers to more than 22o countries.
You can use this shipping method to offer parcel deliveries to Canada within two days, three to four days to Europe, and four to five days to Asia.
6.2.5) UPS Standard
The shipping time for this shipping method varies from five to twelve business days for all countries enlisted with United Parcel shipping.
Included in this are a door-to-door delivery facility and daytime delivery attempts.
7) Why should you choose UPS?
United Parcel Service shipping has many advantages. You can ship packages in 220 countries at competitive prices and track shipments. UPS also meticulously handles heavy and hazardous cargoes.
United Parcel Service is a reliable shipping partner with a high first-attempt delivery rate. They hold a laudable record for faster and efficient deliveries in all 50 states of the US and 219 countries of the world.
United Parcel Service’s shipping beats its competitors for the fastest shipping time, including same-day and next-day deliveries. They have value-added services like Saturday delivery and on-call pickups.
UPS has already become a trusted shipping partner to hundreds of eCommerce businesses.
United Parcel Service is a trusted name in the eCommerce industry with its reliable shipping services and customer-friendly support team. One factor that sets them apart from their competitors is the shipping cost.
United Parcel Service carefully considers each factor that goes into shipping and assigns an appropriate rate to them. With a detailed knowledge of every element in the United Parcel Service shipping cost, you can confidently begin your shipping journey with UPS today.
9.1) How do you estimate UPS shipping costs?
The United Parcel Service’s shipping cost is estimated by taking into account the following: dimensional weight and size of the package, different surcharges, packaging material costs, and delivery times across shipping zones.
9.2) How to save money on shipping costs for UPS?
With information and good planning, you can save money with United Parcel Service shipping. Choosing an exemplary shipping service and the best packaging is also essential to avoid costs. Negotiations always help, and visiting the UPS local stores might seal your bargaining deal.