Did you watch Armand "Mondo" Duplantis compete in the Olympics? He first broke the world record for pole vaulting in 2020, clearing 6.16 meters. Since then, he's broken the world record nine times, most recently clearing 6.25 meters to win gold at the Paris Olympics. Time reported that Mondo earns between $30,000 and $100,000 every time he sets a new world record— proving that competing with yourself can be lucrative.

UPS and FedEx know that's not always the case, though. Improvements in the carriers' low-cost delivery methods are cannibalizing profits as shippers switch from premium services to more cost-effective ones. Today, we'll discuss how UPS and FedEx ended up in this situation and whether you should consider changing your shipping strategy.

A better Ground service

In 2020, UPS unveiled its Fastest Ground Ever initiative, reducing ground shipping delivery deadlines by a whole day for millions of customers across the US and Puerto Rico. UPS delivers 90% of packages in three days or less— and boasts more on-time deliveries than FedEx. If you're shipping an item up to 150 pounds and less than 108 inches in length, UPS Ground guarantees cost-effective, reliable delivery with free tracking.

UPS isn't the only carrier making its Ground network more appealing to budget-conscious shippers. FedEx's Ground service delivers to business addresses on weekdays throughout the US. Its FedEx Home Delivery delivers seven days per week to homes and apartments. These services offer reliable, affordable shipping within the contiguous US in 1–5 business days or to and from Alaska and Hawaii in 3–7 business days for packages up to 150 pounds and less than 108 inches in length.

FedEx offers one more Ground service that's especially relevant to small and medium-sized businesses: FedEx Ground Economy Shipping. For companies that ship lightweight packages (up to 70 lbs. and 130 inches in length plus girth) to residential addresses, this contractual service makes deliveries seven days per week in 2-7 business days. It also offers FedEx Ground Economy Returns to boost the customer experience during the return process.

With both carriers offering such reliable ground options, why would anyone pay a premium for a dedicated 2-day or 3-day service if a ground option offers the same transit time?

Does your shipping strategy need revising?

By making their Ground services faster and more reliable, it's no wonder customers are jumping ship from premium services in favor of less expensive options. FedEx Express ships approximately 6.3 million packages each day— compare that to 10 million FedEx Ground packages daily.

If you're still shipping using premium UPS and FedEx services, have you considered that there may be a more economical solution for your business?

ShipRx can help you determine if your shipping strategy needs a revamp. We'll assess your current contract, recommend ways you can save through negotiations, and point out the pitfalls of seemingly great deals. For example, not all Ground shipping offers service guarantees, meaning you can't recoup refunds through parcel audits in case of delays.

Contact us today for a free savings analysis, and let ShipRx help "vault" you into a more profitable shipping relationship.