UPS Introduces Simple Rate: flat-rate shipping in the U.S.
On Monday, September 23, UPS announced a new product: UPS Simple Rate.
You can read more on the UPS website – here.
UPS Simple Rate is a flat-rate service for packages up to 50 lbs. delivering to anywhere in the US. It targets ecommerce and residential shippers such as those selling on platforms like Etsy and eBay.
This service will compete directly with FedEx One Rate and USPS Priority Mail. The advantages of using a flat-rate service such as these include the ability to more accurately forecast package delivery cost and avoiding surcharges such as Residential Delivery, Delivery Area, and fuel.
With UPS’s Simple Rate, unlike the flat-rate solutions offered by FedEx and USPS, customers can use their own packaging as long as the box is under 1,728 cubic inches. The largest FedEx box available is 1,452 cubic inches.
Simple Rate has five pricing options based on box size for packages being shipped to anywhere in the 48 contiguous states. FedEx prices One Rate not only by box size but also by shipping distance.
While most shippers will find FedEx cheaper for Express Saver and smaller boxes going short distances, UPS will have a cost advantage when it comes to 2-Day shipments and larger items moving across the country.
UPS is also offering Simple Rate for Ground, 2-Day, and 3-Day service levels, while FedEx currently only offers its One Rate Service on Express.