Saving on shipping expenses is essential for e-commerce businesses. But, it gets confusing figuring out the shipping rates of different parcel carriers? UPS and FedEx have different shipping rates based on various factors, including shipping zones. Hence, knowing about zones is equally vital for businesses. In this blog, we will discuss the shipping zones of UPS and FedEx and their significance.
So, what are shipping zones?
Shipping zones are the geographical areas for the delivery of packages. The zones consist of a set of zip codes. Shipping zones give the distance a parcel takes from its origin to its destination. The zones are not universal or fixed. The zones vary according to the type of service and the weight of packages. In addition, each parcel carrier has different shipping zones. There are eight domestic shipping zones for the 48 US mainland states. A ninth shipping zone is for the US territories beyond the mainland.
Significance of zones
Free and fast shipping are essential for today’s customers. For this reason, keeping a tab on shipping rates is necessary. Shipping zones help in determining the shipping rates of parcels. In addition to the weight of packages, the dimensions also affect the shipping rates. Further, the cost and time of delivery of packages are vital factors in calculating shipping prices. For example, a parcel to be delivered in the same Zone (Zone 2) will take less time, less fuel, and will cost less when compared to a higher zone (Zone 8). Higher shipping zones cost more for size-able packages.
FedEx shipping Zones
Every year FedEx publishes its service guide with updated shipping rates by zone and weight. Shippers need to enter the package’s destination zip code to calculate the shipping rate. The standard FedEx zones start from zone 1: 0-50 miles till zone 8: More than 1801 miles. FedEx zones are available for both domestic and international shipments. Also, FedEx Express services deliver parcels fast, which is beneficial for businesses promising quick delivery. Further, FedEx offers negotiated rates for shippers with high-volume packages.
UPS shipping Zones
Shippers can understand the UPS shipping zone by entering the destination zip code on the UPS website. In addition, shippers can download the zone chart table. It gives information about shipments starting with the first three digits of the recipient’s zip code. For instance, the destination zip code which starts from 004 is Zone 2 for UPS ground services, and Zone 302 for UPS 3 Day Select service. Further, shippers can calculate the shipping rates by learning about UPS shipping zones.
Advantages of understanding Shipping Zones
Shippers benefit by learning about zones. As a consequence, they can strategize by:
- Lowering Shipping costs
Shippers can reduce the transit time of products by partnering with third-party logistics companies. When shippers’ products are spread over many fulfillment centers closer to customers, it will keep shippers from paying high prices. Alternatively, shippers can reduce shipping costs with a single fulfillment center in a location where there are many customers.
- Offering free shipping services
Shipping businesses offer customers free shipping if the parcel delivery is in the same zone or the next one. If the parcel is of a specific weight, shippers can give free shipping to customers.
- Zone Skipping strategy
Additionally, shippers use zone skipping strategy to move the parcels near customers or the destination. Businesses can store their products in selective warehouses in some zones. Then, they can deliver the shipments to customers as and when required. For instance, FedEx Ground Economy uses the United States Postal Service (USPS) for the final-mile delivery of parcels. It helps in reducing the shipping costs.
- Ability to choose the best parcel carrier
Shippers can choose a reliable parcel carrier to deliver their parcels by understanding the different zones. UPS and FedEx have different shipping rates for different shipping zones. Based on the services adopted by customers, shipping businesses can choose which parcel carrier delivers the parcels quickly and efficiently.
Audintel advises its clients regarding UPS and FedEx shipping rates. We understand the complexities of UPS and FedEx shipping zones. When shipping packages, our experts help clients choose the type of service and provide tools like rate calculator to compare between carriers. Audintel helps clients in negotiating agreements with parcel carriers.
The bottom line
UPS and FedEx shipping zones vary from each other in terms of service, weight, dimensions of packages, etc. But, this knowledge is necessary for shippers when negotiating with parcel carriers. Shippers can negotiate for discounts and other incentives by understanding the intricacies of zones. And so, if you are a shipper looking to deliver goods at fast speed and low costs, read on about UPS and FedEx shipping zones. For further clarification, you can call us at 408-675-2750 or contact us by clicking here. In addition, you can visit the Audintel website.