SmartPost shipping eliminates that fee, resulting in more savings that can be rolled down to customers. No residential surcharge – In other forms of shipping, to combat the most expensive leg of shipping (that actual delivery to the door), FedEx charges a residential surcharge.In doing this, the cost to ship is greatly reduced. This is possible by delivering to USPS and allowing them to finish the delivery to the customer’s door. Shipping cost reduced – FedEx SmartPost shipping costs are less than other ground service costs.That said, it’s important to understand both sides so you can be sure you’re actually saving money if you decide to go the SmartPost route. There are pros and cons to this shipping option, but many times, the benefits outweigh any drawbacks. FedEx SmartPost ProsįedEx SmartPost can be hugely beneficial for any brand that incurs shipping costs. As noted, savings stem from eliminating that costly “last mile” portion of the delivery, particularly the elimination of the residential surcharge that shipping companies often charge to offset last mile expenses. Delivery time is generally anywhere between 2 and 7 business days.īusiness owners find FedEx’s SmartPost shipping option both efficient and cost effective, with a potential 20 percent savings when compared against the traditional Home Delivery service. Statistically, most SmartPost shipments weigh less than 10 pounds. Shipments must be under 70 pounds, and they can’t be any larger than 130 inches long. So by handling the entire shipment up to that last leg, and then passing that final portion off to the USPS, you are able to drastically reduce shipping costs as a result of lower FedEx SmartPost rates, savings which can then be extended to customers.įedEx SmartPost offers residential shipping for relatively low-weight packages on Monday through Saturday deliveries. The actual delivery segment of shipping (handing the package to the customer) is by far the most expensive – some estimates figure it can account for up to 28 percent of the total shipping cost. What is FedEx SmartPost?įedEx’s SmartPost targets what’s known as the “last mile delivery,” the same way UPS does with its version, SurePost. To do this, you need to find creative and competitive ways to reduce your own cost to ship, so you have the capacity to pass those savings on to consumers. To be competitive in the digital landscape, you simply must offer low shipping costs. Up against the brand power of giants like Amazon and other big box stores, over-priced (in the minds of the consumer) shipping can be a deal breaker. Shipping costs have become an essential, often difficult to navigate, component of business for eCommerce brands to manage.
The services provided and information in this article have remained the same In 2021 FedEx changed the name of FedEx SmartPost to FedEx Ground Economy.
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