Shipping Services: Is the USPS Still the Best?

While the US Postal Service has instituted yet another rate hike, you may be wondering if there is a better way to get your packages from point A to B. Large envelopes and parcel packages have each gone up another five cents for the first ounce.

The Postal Service has worked hard to keep prices down, maybe too much so, and is already 2.3 billion (yes billion with a 'b'), this year. When you compare their rates with other parcel services, maybe they are trying too hard. Let's take a look at the competition and see how they stack up.

Comparing the Big Three

Check out this Consumer Reports review, where they tested overnight shipping with the big three.

They shipped 48 packages to using each carrier to various locations. All of the services delivered all of the packages on time, so expediency is taken right out of the equation.
FedEx and Brown (UPS) charge essentially the same fees for next-day air and second-day air delivery. Brown is about four dollars cheaper than FedEx for Ground shipping, even beating out the post office by a few cents.

Convenience is a big issue as well. Both FedEx and UPS require drop off points. This is usually the case with USPS as well, since you will need to have your package weighed to price it, but the USPS has locations in just about every neighborhood, making them infinitely more convenient. And if you buy the flat rate boxes, which many small businesses L-O-V-E, you can just throw it in the mail box.

Brown by Ground

Brown beating the USPS ground rate may be the thorn that sticks in the Post Office's side, making them so nervous about their rates. However, if you want to use just one shipper for all your needs, it makes sense to go USPS which is about half the cost of the other two for next-day air and even cheaper for second-day air. In addition, Brown is not always cheaper than USPS for ground shipping. It depends on where you are sending it.

The thing with Brown is that the quality of service varies greatly by location. Customers have reported horrific experiences with packages arriving looking like they were used as stand-ins for celebrity boxing matches. Brown gives you free insurance up to $100 on packages, but if you sign for it before you inspect, too bad.

How to Save the Post Office

The USPS could increase its rates and still do well if they improved their tracking systems. They probably have not taken on detailed tracking like UPS and FedEx use because Post Office delivery is extremely reliable. There have not been enough consumer complaints to justify the expense. However, businesses like to know where their packages are. This is why UPS and FedEx have fared so well, despite typically higher delivery rates.

So to the question posed: Is there a better way to get your packages from point A to B? Not really. The USPS is still the best game in town for convenience, dependability and most of the time, price.