Top 6 Shipping Carriers in the US: Your Guide to Choosing the Right Partner

America’s shipping market is deceptively simple on the surface. Despite the country’s vast size, a handful of major carriers control the majority of deliveries.

The traditional big three – USPS, UPS, and FedEx – still handle most commercial shipping, but Amazon Logistics has fundamentally disrupted the market. 

While Amazon keeps its delivery network largely closed to outside businesses, it’s forced every other carrier to improve speed and service just to keep up. Meanwhile, regional specialists are mixing things up at a more local level.

With a handful of carriers all excelling in their own ways, the secret is matching the right carrier to the right job. Heavy packages to businesses? That’s probably UPS territory. Lightweight items to homes? USPS often wins. Need something there tomorrow? FedEx typically justifies its premium. 

The biggest mistake businesses expanding to the US make is assuming American shipping works like the UK, you can’t just pick one carrier and expect it to work everywhere when you’re dealing with a country this size.

Neil Sant, Chief Operations Officer, J&J Global Fulfilment

Here’s your guide to the top six shipping carriers in the US, when to use each one, and how to optimise your fulfilment strategy to take advantage of their benefits. 

In this article

Contributors

Claudine Mosseri

Chief Commercial Officer

Neil Sant

Chief Operations Officer

1. USPS: Championing Local Deliveries

The United States Postal Service (USPS) is a government agency that handles 32% of all shipments by volume, moving 23.8 million packages daily to every address in America. 

As the nation’s postal service, USPS offers unique advantages that private carriers simply cannot match, particularly for lightweight packages going to residential addresses.

USPS pricing structure fundamentally differs from private carriers. They don’t charge extra for home delivery, they reach rural areas without surcharges, and their lightweight package rates often beat competitors by 40-50%. On the flip side, they also have limitations that make them unsuitable for certain business needs.

USPS Main Characteristics

In theory, USPS delivers to every address in America – something private carriers don’t always do economically. Their pricing advantages centre around:

• No residential delivery surcharges (saves $3-6 per package vs. competitors)
• Flat-rate options that eliminate dimensional weight concerns
• Rural delivery without remote area fees
• Cost-effective rates for packages under 10 pounds

USPS Strengths

Lightweight residential delivery is where USPS typically outcompetes private carriers. 

Packages under 2 pounds can cost half of what UPS or FedEx charges, which is squarely in line with the average package weight for most eCommerce brands. The other main advantages of using USPS include:

• No residential surcharges: Massive savings for eCommerce businesses
• Rural coverage: Delivers everywhere without extra fees
• Flat-rate boxes: Predictable pricing regardless of weight (up to limits)
• Saturday delivery: Included free on Priority Mail

USPS Limitations

While the USPS has modernised in recent years, tracking and customer service still lag behind those of private carriers. While significantly improved, their systems update less frequently, and customer service remains harder to reach than UPS or FedEx. 

Other considerations:

• Heavier packages: Above 10 pounds, UPS and FedEx often cost less or the cost-benefit ratio shifts 
• Business delivery: Lacks the commercial delivery expertise of private carriers
• Speed consistency: Slower delivery times, particularly for non-priority services

The classic mistake we see is businesses treating American shipping like a larger version of UK or European shipping. They pick UPS because it sounds familiar, then discover they’re paying residential surcharges on every home delivery that USPS doesn’t charge. We’ve saved clients thousands per month just by understanding which carriers charge what fees,

Claudine Mosseri, Chief Commercial Officer, J&J Global Fulfilment

Bottom Line

USPS excels for lightweight packages going to residential addresses, rural deliveries, and any situation where avoiding residential surcharges matters more than premium tracking. 

They’re particularly valuable for subscription boxes, lightweight eCommerce, and businesses serving customers in small towns or rural areas.

2. UPS: Strong Infrastructure and Technology

UPS has spent over a century building the most comprehensive ground delivery network in the US, and today it controls 37% of the market. Generally seen as a mid-to-heavy item carrier, UPS has become a staple of the global eCommerce fulfilment industry. 

UPS Main Characteristics

UPS operates the largest ground vehicle fleet in America, with well over 125,000 delivery vehicles. They specialise in ground delivery by truck rather than air, and their pricing structure tends to favour:

• Heavier packages (10+ pounds)
• Business deliveries over residential
• Regular shippers who can negotiate volume rates

UPS backs up their services with an excellent shipping network and robust technology, with superb tracking, alerts, delivery slot time selection, re-routing, and more. 

UPS Strengths

Heavy packages are where UPS tends to dominate. Anything over 10 pounds typically ships cheaper via UPS than competitors, especially for ground delivery. Their other key advantages include:

• Speed: Next-day ground delivery to major metros across much of the country
• Comprehensive services: Robust ecosystem for moving inventory, local storage, etc
• Reliability: Industry-leading on-time delivery performance for ground services
• Business delivery rates: 20-30% lower than residential rates for identical packages

UPS Limitations

Small, lightweight packages are where UPS may lose some points. Shipping costs for packages under 2 pounds aren’t generally competitive versus USPS, particularly to residential addresses where UPS adds surcharges.

Other pain points include:

• Dimensional weight penalties: Large, light items get hammered on pricing
• Residential surcharges: Extra fees for home deliveries that don’t apply to business addresses
• Limited low-volume discounts: Small shippers pay published rates with little negotiating power

Bottom Line

UPS makes perfect sense for heavy packages, business deliveries, and companies that ship consistently enough to negotiate better rates. 

If you’re moving substantial inventory to other businesses or shipping products that actually weigh something, UPS typically offers the best combination of reliability and cost-effectiveness.

Most businesses don’t realise how much package weight affects carrier economics, we see companies overpaying by 50% just because they never analysed their shipping patterns by weight and destination type.

Claudine Mosseri, Chief Commercial Officer, J&J Global Fulfilment

3. FedEx: When Speed Justifies Premium Pricing

Holding 33% market share with $90 billion in annual revenue, FedEx remains the gold standard when time is critical. They achieve this through their large air fleet, operating some 1,000 flights or more per quarter – considerably more than UPS. 

While everyone knows FedEx for its overnight shipping, the company has built a ground network that competes directly with UPS, albeit at generally premium pricing across the board.

FedEx is primarily compared to UPS, and it’s a close call in most comparison areas, with one study stating FedEx deliveries arrive on time 98.7% of the time, and UPS at 98.9%. FedEx, customer service satisfaction rates, meanwhile, edge out UPS in some cases. 

FedEx Main Characteristics

FedEx operates two primarily distinct networks: FedEx Express for air services and FedEx Ground for surface delivery. They specialise in express delivery, though this comes at additional cost, especially when shipping to residential addresses. 

As such, their pricing consistently runs higher than competitors across all services:

• Premium rates for both express and ground services
• Extensive overnight and two-day options
• Strong international shipping network
• Focus on business customers willing to pay for guaranteed service

FedEx Strengths

Express delivery is where FedEx thrives. When you need guaranteed overnight or two-day delivery anywhere in America, FedEx delivers reliably, which is where FedEx scores points over UPS, despite generally not living up to UPS in terms of honouring delivery estimates, even if it’s marginal. 

Key advantages include:

• Overnight reliability: Best-in-class for time-critical shipments
• International expertise: Superior customs handling and global network
• Service quality: Premium handling reduces damage rates
• Business focus: Understands commercial delivery requirements

FedEx Limitations

Everything costs more with FedEx. Their ground service often runs 20-30% higher than UPS for identical packages, and their surcharge structure contributes far greater costs to residential addresses:

• Higher base rates: Premium pricing across all service levels.
• Multiple surcharges: Residential, fuel, weekend, and remote area fees accumulate.
• Limited cost savings: Even high-volume shippers struggle to negotiate meaningful discounts.

For routine, non-urgent shipments, FedEx pricing rarely justifies the premium unless speed is a key factor. Moreover, in some studies and anecdotally, they’re not quite as timely as UPS. 

Bottom Line

FedEx makes sense when delivery speed directly impacts your business success – such as overnight shipments, international orders, time-sensitive business deliveries, or high-value items that require premium handling. For everything else, you’re paying for service quality you probably don’t need.

4. DHL: The International Specialist Operating in America

DHL operates in the US, but they’re not really competing for your everyday eCommerce business. Some years ago, DHL scaled back its domestic US ground operations to focus on international shipping. 

Today, they often partner with USPS for domestic last-mile delivery, which reflects their strategic focus on international expertise rather than competing directly with UPS and FedEx on routine US shipments.

DHL Strengths

International shipping is where DHL focuses their efforts. While they’re not competitive for standard US domestic deliveries, they become relevant when you’re shipping inventory from the US back to the UK or moving stock between international warehouses. Their key advantages include:

• Cross-border expertise: Built their reputation on managing complex international documentation and customs processes
• European network: Particularly strong for US-to-Europe shipping with established relationships and local knowledge
• Moving inventory: DHL can sometimes suit when you need to move inventory long distances across the US or internationally

DHL Limitations

DHL doesn’t really intend to compete with the big 3 US carriers for eCommerce shipping specifically. Key constraints include:

• Premium domestic pricing: Standard packages often cost 50-80% more than UPS or FedEx for identical domestic shipments
• Limited domestic focus: Not built to compete aggressively for routine eCommerce business
• Fee increases: New surcharges widen the pricing gap with domestic competitors
• USPS dependency: Relying on another carrier for final delivery limits control and consistency

Bottom Line

If you need delivery to multiple countries with different regulatory requirements, or you’re shipping specialised products requiring expert handling, DHL often justifies their premium pricing. For standard domestic eCommerce, other carriers are cheaper and more efficient. 

5. OnTrac: A Possible Disruptor?

Most non-US businesses have likely never heard of OnTrac, which began as a regional West Coast carrier and has since expanded organically, rather than building a nationwide network from scratch. 

They can offer next-day delivery at ground shipping prices in markets where UPS and FedEx charge premium rates, serving 35 states and reaching 70% of the US population.

Right now, OnTrac’s reputation is far from assured, with the company scoring just one star on TrustPilot. The company has faced some fierce criticism for package handling and delivery consistency, though service quality has improved as they’ve grown and improved their operations.

6. Amazon Logistics: Shaking Up The Entire Industry

Amazon Logistics now delivers more parcels than anyone in the US, but here’s the catch – you probably can’t use them.

Amazon does offer limited shipping services to third-party businesses in the US, but access comes with a major restriction: you must be an Amazon seller with an active account to qualify. Plus, fees are high, and the system doesn’t suit many DTC brands. 

In essence, for most independent eCommerce businesses, Amazon Logistics remains inaccessible.

However, Amazon’s delivery standards – next-day shipping, detailed tracking, proactive communication – define what customers expect from all carriers, so their influence is felt across the entire industry. 

While you might be comparing USPS to UPS to FedEx, customers are comparing your speed and service to Amazon.

Amazon didn’t just change delivery speeds – they changed how customers think about shipping entirely, every other carrier has had to adapt to that new reality, which actually benefits businesses because service quality has improved across the board.

Neil Sant, Chief Operations Officer, J&J Global Fulfilment

Top US Shipping Carriers at a Glance

Here’s a table to quickly compare the top US shipping carriers and determine which ones are best suited for different types of deliveries.

Carrier	Best For	Strengths	Limitations
USPS	Lightweight residential, rural deliveries, subscription boxes	No residential/rural surcharges, flat-rate pricing, nationwide access	Slower tracking, poor for heavier or business-focused deliveries
UPS	Heavy packages, business deliveries, consistent high-volume shipping	Excellent ground service, reliable tracking, volume discounts, strong commercial focus	High residential surcharges, expensive for small/light packages, dimensional weight penalties
FedEx	Overnight or time-sensitive deliveries, international shipments	Fastest express options, great international network, premium service quality	Premium pricing, many surcharges, limited savings for high-volume users
DHL	International logistics, cross-border shipments	World-class customs handling, especially strong in US-to-Europe lanes	Not competitive for domestic US shipping, often partners with USPS for final mile
OnTrac	Regional low-cost deliveries (West/Midwest US)	Ground-level pricing, fast delivery in urban regions, covers 70% of US population	Limited national coverage, inconsistent service quality, weak brand trust
Amazon Logistics	High-speed eCommerce fulfilment for Amazon sellers	Next-day delivery, elite tracking, seamless Amazon integration	Not open to non-Amazon sellers, restricted access, often reliant on USPS for final mile

Choosing the Right Carrier Mix for Your Business

As we can see, no single carrier wins at everything. The most successful businesses treat carriers like tools in a toolbox – each one designed for specific jobs. 

Fulfilment strategies in the US tend to centre around a central carrier that best suits your business, while adapting when other options better serve your business or your customers. 

Here’s how to build a US carrier strategy:

Analyse Your Shipping Patterns

Before you can optimise carrier selection, you need to understand what you’re actually shipping:

• What percentage of packages are lightweight (under 2 pounds) versus heavy (over 10 pounds)?
• How much business goes to residential addresses versus commercial locations?
• What’s your geographic distribution – urban versus rural customers?
• How price-sensitive are your customers to shipping costs versus speed?

Most businesses never analyse these patterns, which explains why they overpay for shipping year after year.

Match Carriers to Specific Use Cases

The truth is, there’s no universal “best” carrier for any type of shipment. Your shipping volume, negotiated rates, and customer locations all affect which carrier wins on any given order. Consider these factors when evaluating carriers:

• Package characteristics: Weight, dimensions, and value all affect which carrier offers the best rates.
• Destination types: Residential versus business addresses can significantly impact pricing.
• Geographic patterns: Where your customers are located influences which carriers perform best.
• Volume and frequency: Your shipping volume affects which discounts and services you can access.
• Speed requirements: How quickly customers need their orders affects carrier selection.

The key is running actual comparisons with real shipments rather than assuming any carrier is universally better for specific scenarios. Rates change, service levels vary by region, and your business needs evolve over time.

Building Your Multi-Carrier Strategy

Each major carrier operates differently, charges differently, and excels in completely different scenarios. For example, shipping zones can double your costs between neighbouring states. 

Residential surcharges range from $3 to $ 6 per package with some carriers but not others. Dimensional weight pricing means a lightweight pillow in a big box costs more to ship than a heavy book.

The carriers know this. They’ve built their pricing structures around these differences, which is why USPS doesn’t charge residential surcharges while UPS does, or why FedEx’s overnight network dominates time-critical shipments despite costing more than alternatives.

Successful businesses don’t fight these realities – they use them. They understand that shipping strategy means matching each order to the carrier that handles it best, rather than forcing everything through a single provider.

How J&J Can Help

This is exactly the problem we solve for businesses every day. We’re a third-party logistics provider (3PL) with fulfilment centres in Ohio and Nevada, positioned to efficiently reach most of America, plus the technology to automatically route each order to the right carrier at the right price.

We’ve helped dozens of brands crack the American market – from Dotty Dungarees expanding into children’s clothing to Whites Beaconsfield handling sudden viral demand, and Karta Bottle building their business across the States. The common thread? They all needed smarter shipping to compete against domestic US brands.

Here’s how we can help you gain traction in US markets and set you up for long-term success:

• Strategic fulfilment locations: Our Ohio and Nevada centres mean your products start closer to customers, cutting shipping costs and delivery times across America.
• Volume discounts you can’t get alone: We ship millions of packages annually, which means carriers give us rates that individual businesses never see.
• Automatic optimisation: Our award-winning software, ControlPort™, automatically selects the best carrier for each package – no guesswork, no manual decisions, just the optimal choice every time.

When your products ship from the right location via the right carrier, customers get faster delivery at a lower cost. That’s how you turn American shipping from a pain point into a decisive competitive advantage.

Transform Your US Shipping Strategy

The US shipping market rewards businesses that understand each carrier’s strengths, rather than relying on cookie-cutter solutions. When your products arrive faster and cost less to ship than those of your competitors, that’s when market traction builds. 

We’ve cracked the US shipping code for hundreds of UK businesses through our Ohio and Nevada fulfilment centres, bulk carrier rates, and ControlPort™ technology that automatically picks the optimal carrier for each order. We turn shipping from a cost problem into a competitive advantage.

Ready to compete properly in America? Contact our team today. We’ll show you exactly how strategic fulfilment and carrier optimisation could transform your US market performance.

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