Similar to its rival UPS®, FedEx® offers an economical option for low-weight shipping for residential customers. FedEx SmartPost® has joined forces with the U.S. Postal Service® for final-mile delivery to the end customer. This partnership provides shippers with a slower, but cost-effective option for high-volume shippers. USPS® already visits nearly every residential address in the United States to deliver mail which is one of the reasons why this hybrid shipping model was implemented. There’s less cost for USPS® to deliver small packages to residences which are most likely on their regular route already.
This article is part of the Simplifying carrier agreements series intended for shippers and resellers better navigate the complicated world of parcel shipping. Read more.
Where can I ship?
FedEx SmartPost® doesn’t extend into international markets yet, so if you are a heavy international shipper this isn’t an option for you. FedEx SmartPost® reaches every U.S. address, including P.O. boxes, military APO, FPO and DPO destinations. You can even use FedEx SmartPost® to ship to Alaska, Hawaii, and all U.S. territories. Transit times typically take between 2 to 7 business days within the contiguous U.S., based on the final destination ZIP code. The transit time largely depends on the speed of your local USPS® office.
What are the advantages?
Using FedEx SmartPost® to ship, does have its advantages. You’ll find full FedEx SmartPost® tracking visibility on fedex.com with estimated delivery date. You can keep an eye on the path of your package as it’s scanned throughout the day and entire delivery journey. FedEx SmartPost® has no residential or Saturday delivery surcharges attached to the service and its limit of liability is $100.
What are the disadvantages?
In a world where customers continually want results instantly, using a slower shipping service can be a disadvantage. It might be a cost-effective option, but will it cost you your customers? In addition to a slower transit time than traditional FedEx® or UPS® methods, FedEx® recently announced its rate changes for 2018 which included implications for SmartPost users. On Jan. 22, FedEx® will begin applying a dimensional weight (DIM) factor of 139 to all SmartPost® packages. The change will align SmartPost® dimensional weight pricing with that of FedEx Express and FedEx Ground®. This will cause quite a price hike for shippers to accommodate going into the new year. In the past shipments were charged by weight only.
FedEx SmartPost® service is best suited for high-volume shippers who need a financially practical shipping option for residential deliveries. Of course, customers’ views on acceptable shipping time and cost vary and to ensure a positive customer experience you should offer multiple shipping options and provide delivery expectations for each option. Some customers are willing to wait 7 days for a product if that means the shipping charges are dramatically lower, but others expect almost instant delivery. Share A Refund is here to sort out any shipping fees or overcharges you might experience. Remove the hassle of shipment auditing, with Share A Refund automated parcel auditing technology.
